DIGITIMES Asia: News and Insight of the Global Supply Chain

Transcend chair sees AI memory supercycle

Lily Hess — Mon, 11 May 2026 09:45:46 GMT

AI will bring an epochal technology revolution, as did the invention of steam power and electricity, according to Transcend Information chairman Chung-Won Shu. He argued that DRAM and NAND flash will face shortages in 2026-2027 and could remain undersupplied in 2028. He said Transcend's multi-level cell (MLC) NAND inventory, bought before certain memory manufacturers stopped production, is enough for about one year. Shu added that the company has recently broken into China's cloud service provider (CSP) supply chains, underscoring a structural change in the memory industry.

Samsung strike threat puts memory output at risk as 18-day walkout looms

DIGITIMES — Mon, 11 May 2026 09:14:49 GMT

A planned 18-day strike at Samsung Electronics is shifting investor attention from labor negotiations to the risk of memory-output disruption, as estimates from Korean media point to significant potential losses across the company's semiconductor operations.

Taiwan ranks among top 20 markets as AI adoption surges, Microsoft says

DIGITIMES — Mon, 11 May 2026 09:00:45 GMT

Microsoft's AI Economy Institute released a global update showing rapid growth in generative AI use since mid-2025 and identifying Asia as the primary engine of recent AI diffusion. The report said Taiwan ranked No. 20 globally in local AI adoption in the first quarter of 2026, while the United Arab Emirates (UAE), Singapore, and Norway led global diffusion rates during the same period.

Advantech April revenue hits record as edge AI surges

Lily Hess — Mon, 11 May 2026 08:51:38 GMT

Advantech posted a fresh monthly revenue record in April 2026 as rising demand for edge AI applications and synchronized growth across major global markets lifted the industrial PC (IPC) maker beyond a traditional IPC supplier profile. Looking to the second quarter of 2026, the company remained cautiously optimistic and said its goal of double-digit full-year revenue growth was unchanged.

AI data center spending frenzy ignites Sunon's next cooling windfall

Levi Li — Mon, 11 May 2026 08:34:58 GMT

Sunonwealth Electric Machine Industry (Sunon) said surging global investment in AI infrastructure is driving strong demand for industrial cooling products, with its electronically commutated (EC) fans expected to emerge as a major growth driver in 2027.

Delta Electronics rides AI power, liquid cooling boom to another strong month

Levi Li — Mon, 11 May 2026 08:19:28 GMT

Continuing the strong growth trajectory seen in the first quarter of 2026, Delta Electronics maintained robust year-over-year revenue momentum in April, supported by continued expansion in AI data center-related business.

For India's chip dream, Lam Research points beyond fabs

DIGITIMES — Mon, 11 May 2026 07:39:20 GMT

As India's semiconductor ambitions move from policy announcements to execution, Lam Research sees the country's opportunity extending beyond fabs to the less visible ecosystem that will determine whether it can become a meaningful part of the global chip manufacturing supply chain.

China's cybersecurity AI charges ahead despite US model lockout

DIGITIMES — Mon, 11 May 2026 07:28:50 GMT

AI is upending the world of cybersecurity, as more capable models and agentic capabilities bring about new ways to exploit vulnerabilities, along with new ways to discover and patch them. While major US AI companies have so far led the race, Chinese firms are also using AI to stay competitive and create similarly powerful tools, even as they are officially shut out of the most advanced American models.

DeepSeek's US$7bn funding bid puts China's AI race on notice

DIGITIMES — Mon, 11 May 2026 07:14:35 GMT

Chinese AI startup DeepSeek is seeking to raise as much as CNY50 billion (US$7.35 billion) in its first external funding round. The deal could value the company at more than CNY350 billion (US$51.5 billion), potentially the largest funding round in Chinese AI history.

Analysis: Intel's Apple deal boosts CEO Tan's turnaround, but hard part still lies ahead

DIGITIMES — Mon, 11 May 2026 07:10:06 GMT

Intel's reported preliminary agreement to manufacture some chips for Apple devices would mark a major validation point for CEO Lip-Bu Tan's effort to rebuild the US chipmaker's foundry business. It would not, however, resolve the deeper manufacturing, cost, and organizational challenges still standing between Intel and a full-scale comeback.

Taiwan backs military-civilian cyber tech to counter AI attacks

Kevin Wang — Mon, 11 May 2026 06:35:43 GMT

AI smartphones from Chinese brands are widely available in Taiwan, yet AI text summarization involving audio content deemed politically sensitive is often interrupted, as such services rely on data transfers to servers in China. Although hostilities between Taiwan and China have not escalated, cybersecurity awareness has increased in both the military and civilian sectors, especially as Taiwan looks for ways to counter AI-enabled attacks from China.

Memory bottlenecks threaten data-center GPU efficiency as AI inference scales, says Micron SVP

Jingyue Hsiao — Mon, 11 May 2026 04:35:20 GMT

Micron's senior vice president, Jeremy Werner, told The Circuit Podcast that memory has become a strategic bottleneck for data-center inference, warning that insufficient memory can sharply cut GPU utilization while faster, larger memory can theoretically multiply the compute extracted from GPUs. The remarks underscore how storage and memory design could limit AI deployment.

Nan Pao targets semiconductor specialty materials as revenue hits record for April

DIGITIMES — Mon, 11 May 2026 04:34:19 GMT

Nan Pao Resins Chemical Group said April revenue rose 15.0% year on year to NT$2.285 billion (US$72.77 million), a record for the month, while cumulative revenue for January to April 2026 reached NT$8.122 billion, up 7.7% from the same period in 2025. The company attributed the monthly gain to raw material price swings and customer expectations of price increases, which prompted earlier order placements and stockpiling. A spokesperson added that Nan Pao accelerated new product development and won new customers during the period.

Samsung strike talks resumed with US$29 billion on the line

DIGITIMES — Mon, 11 May 2026 04:31:26 GMT

Samsung Electronics' labor and management have returned to the negotiating table under South Korean government mediation, as the company faces a planned general strike and a widening dispute over how profits from its semiconductor rebound should be shared.

Qisda sees recovery driven by AI and semiconductors, expects profit rebound through 2026

Jingyue Hsiao — Mon, 11 May 2026 04:22:38 GMT

Qisda said its operations began to recover in the first quarter of 2026 after profits bottomed out in 2025, with chairman Peter Chen saying visibility for the second and third quarters is now better than in the first quarter. Chen expects revenue and earnings to return to normal in 2026 as AI and semiconductors continue to reshape the group's direction.

Ennostar sees 2Q26 rebound on stronger component demand

Elaine Chen — Mon, 11 May 2026 04:20:23 GMT

Ennostar said its core losses narrowed significantly in the first quarter of 2026 from the previous quarter, despite the seasonally weak period for the industry, and expects a marked recovery in both revenue and shipments starting in the second quarter of 2026, driven by stronger demand for components and emerging growth in Micro LED technology.

AMD's 2nm defection to Samsung dents TSMC's AI grip

Charlene Chen — Mon, 11 May 2026 04:18:33 GMT

The AI semiconductor supply chain is showing unexpected signs of a shift, with TSMC's long-held dominance in the foundry market beginning to loosen. US chipmakers are increasingly engaging with Samsung Electronics and Intel as alternative suppliers, and AMD has already handed its 2nm order to Samsung.

DIGITIMES Insight: MediaTek denies Intel link as TSMC's packaging lead faces new test

Sherri Wang — Mon, 11 May 2026 04:14:54 GMT

DIGITIMES senior analyst Luke Lin said Warren Buffett's investment in Apple should be viewed not simply as a stock trade, but as a bet on the company and its leadership under CEO Tim Cook.

Trans-Sun Materials rides AI server wave with profit surge

DIGITIMES — Mon, 11 May 2026 03:56:51 GMT

Trans-Sun Materials Technology posted broad-based gains in the first quarter of 2026, with consolidated revenue rising 28.66% year on year to NT$379 million (US$12.07 million) and net profit attributable to the parent surging 66.34% to NT$26 million, yielding earnings per share of NT$1.07. The maker of electronic functional materials credited the performance to accelerating demand for high-performance computing infrastructure tied to the expansion of AI workloads.

Dayuan 1Q26 rebounds on North America broadband and defense orders

DIGITIMES — Mon, 11 May 2026 03:44:46 GMT

Dayuan Optoelectronics' consolidated revenue for the first quarter of 2026 reached NT$443 million (US$14.11 million), a 42.7% increase year on year, driven by North American broadband infrastructure demand and defense project deliveries. The company said this momentum is expected to strengthen from the third quarter of 2026 as BEAD-funded broadband spending accelerates and additional defense contracts move into execution.

Phison targets AI storage and edge computing growth through Phison 3.0 strategy

Jingyue Hsiao — Mon, 11 May 2026 03:41:14 GMT

Phison Electronics Corp. reported record revenue and profit for the first quarter of 2026, while Chief Executive Khein-Seng Pua warned that a severe imbalance in the global NAND market would push average selling prices higher and sustain tight supply conditions into the second half of the year. He said the company is accelerating a strategic shift into AI storage infrastructure and edge AI computing as part of its transition, which it calls Phison 3.0.

Analysis: Forget the hardware race — Unitree wants to own the robot platform

Levi Li — Mon, 11 May 2026 03:37:54 GMT

When Unitree Robotics added "Mantis Boxing", Bruce Lee's Jeet Kune Do and even "Kamehameha" moves to its humanoid robot application store, the immediate reaction from many observers was amusement.

Ennoconn expands industrial AI push as European demand strengthens

Elaine Chen — Mon, 11 May 2026 03:35:06 GMT

Ennoconn Corporation reported record-high consolidated revenue for April 2026, driven by double-digit growth across its industrial IoT, smart factory, and facilities management businesses.

Tesla AI5 ignites Samsung-LG race for ABF substrates, robot parts

DIGITIMES — Mon, 11 May 2026 03:33:55 GMT

LG Innotek is seeking to enter Tesla's AI semiconductor supply chain by targeting ABF-based FC-BGA substrate orders for the automaker's AI4 chips, intensifying its competition with Samsung Electro-Mechanics (Semco) across both autonomous driving and humanoid robotics hardware.

AI inference boom fuels memory race, with Samsung in pursuit

Jingyue Hsiao — Mon, 11 May 2026 03:31:48 GMT

AI-driven demand and new product cycles are accelerating competition among major memory makers, creating pressure across storage and component supply chains. Production is running near full capacity, margins on some DDR5 products have improved, and next-generation HBM will be a focal point of contention through 2027 and beyond.

FocalTech forecasts return to growth as product mix improves

Elaine Chen — Mon, 11 May 2026 03:23:24 GMT

FocalTech Systems said its business is expected to bottom out in the first quarter of 2026, with a recovery already underway and a return to growth in both revenue and profitability beginning in the second quarter, according to remarks made at an investor conference on May 8.

Samsung reportedly offers above-law severance in China while monitor sales linger

Levi Li — Mon, 11 May 2026 03:13:48 GMT

Samsung Electronics is offering severance packages above China's statutory requirements while restructuring parts of its consumer electronics business in the country, signalling a calibrated retreat rather than a broader China exit.

Alibaba's Qwen could push AI agents into the heart of e-commerce

DIGITIMES — Mon, 11 May 2026 03:02:02 GMT

Alibaba Group is preparing to more deeply integrate its artificial intelligence platform, Qwen, into its vast online shopping ecosystem, a move that could fundamentally reshape how consumers browse and purchase goods in China.

Gemtek posts first-quarter loss as it pivots to 800G and 1.6T optical modules

DIGITIMES — Mon, 11 May 2026 03:01:22 GMT

Gemtek Technology reported consolidated revenue of NT$3.112 billion (US$99.1 million) in the first quarter and a gross margin of 10.4%, but swung to a net loss as strategic restructuring and raw material pressure hit results, the firm announced. The networking equipment maker recorded an operating loss of NT$205 million, a net loss of NT$131 million, and earnings per share of NT$0.32, while April revenue declined 23.21% year on year to NT$1.149 billion.

Clevo posts 40% year-on-year profit growth as it stocks components ahead of second-quarter notebook price rises

DIGITIMES — Mon, 11 May 2026 02:59:32 GMT

Clevo reported steady first-quarter 2026 results, with consolidated revenue of NT$4.941 billion (US$157.3 million), gross profit of NT$1.03 billion, operating income of NT$338 million, and net income after tax of NT$350 million, delivering quarterly earnings per share of NT$0.61. The firm said first-quarter profit rose 25% from the prior quarter and 40% year-on-year, and leadership stated it will pursue continued quarter-over-quarter and year-over-year growth in the second quarter.

Taiwan targets three key sectors in upcoming 6G era

Rodney Chan — Mon, 11 May 2026 02:59:14 GMT

Taiwan's Ministry of Economic Affairs (MOEA) has launched a new next-generation communications program under its A+ Industrial Innovative R&D Program, aiming to steer company research toward 6G networks, non-terrestrial networks (NTN), and all-photonics networks (APN). The move follows the Executive Yuan's Five Trusted Industry Sectors push launched in May 2024, and its Next-Generation Communications Technology Development Program announced in July 2025.

OpenAI and chipmakers roll out MRC to prevent AI training slowdowns

DIGITIMES — Mon, 11 May 2026 02:57:14 GMT

OpenAI said it has partnered with chipmakers and cloud providers — including AMD, Broadcom, Intel, Microsoft, and Nvidia — to develop a new networking protocol aimed at improving the performance and reliability of large-scale AI training systems.

Chinese semiconductor suppliers expand SEA presence at SEMICON SEA 2026

Charlene Chen — Mon, 11 May 2026 02:47:27 GMT

At SEMICON Southeast Asia 2026 in Kuala Lumpur, China's semiconductor equipment makers are steadily "infiltrating" the Southeast Asian market, extending from back-end packaging and testing into front-end processes while setting up subsidiaries in Singapore and Malaysia and using localized branding to break through. The shift is reshaping the competitive landscape at the region's annual semiconductor showcase.

ASE, Wus to jointly build Kaohsiung advanced packaging plant by 2029

Eifeh Strom — Mon, 11 May 2026 02:43:32 GMT

Advanced Semiconductor Engineering (ASE) and PCB manufacturer Wus Printed Circuit are teaming up to build a new packaging facility in southern Taiwan, as the world's largest chip assembler moves to expand capacity ahead of surging AI-driven demand. The plant, to be located in the Kaohsiung Nanzih Technology Industrial Park, is scheduled to open in September 2029.

Anthropic's AI expansion reportedly fuels US$1.8 billion Akamai cloud deal

DIGITIMES — Mon, 11 May 2026 02:40:08 GMT

AI startup Anthropic has reportedly signed a US$1.8 billion computing agreement with Akamai Technologies as demand for generative AI services continues to accelerate, according to a report by Bloomberg News citing people familiar with the matter.

AI boom drives Taiwan's semiconductor testing industry into record expansion

Elaine Chen — Mon, 11 May 2026 02:33:26 GMT

To secure a foothold in the booming market for advanced AI chip packaging and testing, Taiwan's outsourced semiconductor assembly and test (OSAT) industry is entering what executives and analysts describe as an unprecedented expansion cycle. Industry observers estimate that combined capital expenditures by Taiwanese OSAT providers could surge to a record NT$400 billion (approx. US$12.7 billion) in 2026, driven by an aggressive race to expand high-end production capacity.

Unitree brings App Store ecosystem to humanoid robots

Levi Li — Mon, 11 May 2026 02:12:58 GMT

Unitree Robotics has launched what it calls the world's first humanoid robot motion App Store, allowing users to download and install robot skills in a manner similar to smartphone apps.

Weekly news roundup: Taiwan freezes trading in MediaTek; 2D NAND shortage spirals

DIGITIMES — Mon, 11 May 2026 02:06:35 GMT

Below are the most-read DIGITIMES Asia stories from the week of May 4-10, 2026:

PCL Technologies to buy precision plastics and metal parts maker to target CPO components for data centers

DIGITIMES — Mon, 11 May 2026 01:54:31 GMT

PCL Technologies announced that its board approved a plan to acquire 100% of Pingood Group, including Pingood Enterprise Co., Pingood (Thailand) Co., Ltd., Pingji Electronics (Dongguan) Co., Ltd., and Suzhou Pingji Electronics Technology Co., Ltd., with the purchase funded primarily from company cash and supplemented by bank financing as needed. The move marked PCL Technologies' entry into high-precision plastic and metal mechanical components to support optical and electronic packaging for data center and AI applications.

APLEX forecasts charging-station shipments as medical business ramps in 2027

DIGITIMES — Mon, 11 May 2026 01:51:30 GMT

APLEX Technology said it secured a charging-pile order from a leading US customer and expected mass production shipments in the fourth quarter, while medical product trials with a European customer were slated to generate contributions beginning in 2027. The industrial PC maker described smart manufacturing, smart transportation, and smart healthcare as its 2026 focus areas and reported that stainless-steel, fully waterproof IPC products were gaining traction in food processing, biopharmaceuticals, and petrochemical explosion-proof applications.

AI surge drives Taiwan push for second-source PCB materials as market booms

DIGITIMES — Mon, 11 May 2026 01:48:39 GMT

The global copper-clad laminate market expanded sharply as AI computing demand forced higher-spec hardware, and Taiwan's printed circuit board supply chain moved to secure second-source positions, industry data showed. The Taiwan Printed Circuit Board Association reported the copper-clad laminate market reached US$16.02 billion in 2025 and was projected to rise to US$21.5 billion in 2026 as server designs demanded larger sizes, ultra-low-loss performance, and boards with more than 40 layers.

Lite-On posts 25% year-on-year revenue jump in April on AI power and BBU demand

DIGITIMES — Mon, 11 May 2026 01:43:59 GMT

Lite-On Technology reported April consolidated revenue of NT$16.7 billion (US$530 million), up 1% from March and 25% from a year earlier, marking the company's highest monthly intake in nearly seven and a half years, the firm announced. The company said that strong demand for power management systems for AI and cloud computing, advanced servers, high-efficiency backup battery units, and optoelectronic semiconductors drove the gain.

Taiwan, Germany extend joint EV battery R&D to 2029

Eifeh Strom — Mon, 11 May 2026 01:26:54 GMT

Taiwan and Germany signed a Science and Technology Arrangement (STA) in 2023 to promote joint research in semiconductors, hydrogen energy, artificial intelligence (AI), and other fields. Officials from Taiwan's National Science and Technology Council (NSTC) recently attended a lithium battery cooperation workshop in Dresden, Germany, where both sides confirmed continued support for a bilateral advanced battery research and development program from 2026 to 2029.

The AI memory squeeze may not ease before 2028

Jingyue Hsiao — Mon, 11 May 2026 00:20:02 GMT

Global memory supply is under severe strain, prompting major cloud service providers to sign multi-year contracts with memory makers and forcing the industry to rethink capacity spending and pricing. The shortage reflects long lead times for new fabs and a strategic shift toward higher-margin memory types.

Taiwan chip testing firm sheds power unit, pivots to AI validation as margins recover

Willis Ke — Mon, 11 May 2026 00:12:17 GMT

Taiwan-based electronics verification and analysis specialist Integrated Service Technology (iST) posted weaker first-quarter revenue and an operating loss amid a major operational restructuring, but said the transition has laid the groundwork for a sharper focus on higher-margin AI-related validation and analysis services.

Gigabyte's Giga Computing bets on South Korea's sovereign AI boom

Elaine Chen — Mon, 11 May 2026 00:12:02 GMT

Gigabyte Technology subsidiary Giga Computing is expanding aggressively in South Korea, positioning itself to benefit from a surge in demand for AI servers driven by the country's sovereign AI ambitions and accelerating enterprise adoption of artificial intelligence (AI).

Taiwan's EV charging companies find Europe's real opportunity in energy trading

Elaine Chen — Mon, 11 May 2026 00:11:39 GMT

As Europe accelerates the build-out of infrastructure for battery electric vehicles (EVs), the region has become one of the world's most strategically important and fiercely competitive markets for charging networks.

GSEO reports strong growth as it expands into new markets

Elaine Chen — Mon, 11 May 2026 00:11:28 GMT

Genius Electronic Optical (GSEO), the Taiwanese optical lens manufacturer known for supplying high-end smartphone camera components, reported strong revenue growth in April as the company pushes into new application markets beyond its traditional business.

Nvidia backs IREN in 5GW AI infrastructure push tied to US$2.1 billion stake

DIGITIMES — Mon, 11 May 2026 00:11:17 GMT

Nvidia is expanding its influence beyond AI chips and deeper into the infrastructure layer underpinning the global artificial intelligence boom, announcing a strategic partnership with AI cloud and data center operator IREN to deploy up to 5 gigawatts of AI infrastructure globally.

Samsung eyes Exynos 2700 as test for chip-unit recovery

DIGITIMES — Mon, 11 May 2026 00:11:05 GMT

Samsung Electronics is looking to the tentatively named Exynos 2700 application processor (AP) as a key test for its non-memory semiconductor recovery, with the chip's adoption rate and performance in the Galaxy S27 series expected to shape the outlook for its System LSI and foundry businesses.

India roundup: India accelerates semiconductor and display ambitions with new approvals, AI infrastructure expansion

DIGITIMES — Mon, 11 May 2026 00:10:44 GMT

India is advancing its electronics and semiconductor manufacturing strategy through new approvals for semiconductor and Mini/Micro LED projects, while companies including Tata Electronics and Yotta Data Services expand investments tied to chips, AI infrastructure, and data centers. The developments reflect India's broader push to become a larger global sourcing base for semiconductors, displays, automotive electronics, and AI-related manufacturing amid ongoing supply chain diversification.

AI demand fills Vanguard's Singapore fab ahead of schedule

DIGITIMES — Sat, 9 May 2026 23:51:35 GMT

Vanguard International Semiconductor said AI-driven demand has largely offset geopolitical and macroeconomic headwinds and will be the dominant force shaping semiconductor industry conditions in 2026. The wafer foundry said AI infrastructure buildout has crowded available capacity, pushed prices higher and accelerated customer orders for its Singapore 12-inch fab, with sampling now slated for July 2026.