DIGITIMES Asia: News and Insight of the Global Supply Chain

Europe's heatwave turns air conditioners into power chip growth story

Levi Li — Thu, 2 Jul 2026 01:46:55 GMT

Europe's intensifying heatwave is reshaping the region's air conditioner market, driving a surge in China's air conditioner exports and lifting demand for upstream power semiconductors, power management ICs and mature-node capacity.

PlayStation to end physical game discs for new releases from 2028

DIGITIMES — Thu, 2 Jul 2026 01:31:35 GMT

In a blog post on July 1, Sony Interactive Entertainment (SIE) said it will stop producing physical discs for all new games released on PlayStation consoles beginning in January 2028, marking a major shift toward digital distribution after more than three decades of disc-based game sales. Existing games and titles scheduled for release before the deadline will remain available on physical media.

Ericsson says AI demand is accelerating 5G SA and FWA deployment

DIGITIMES — Thu, 2 Jul 2026 01:21:02 GMT

Ericsson Taiwan president David Chou said the rapid expansion of AI applications and sustained enterprise investment in cloud computing are making mobile networks a critical layer of the AI era, with AI, cloud and mobile connectivity now forming an interdependent technology stack.

Alltop projects cautious 2H26 growth led by AI servers and recovering EV demand

DIGITIMES — Thu, 2 Jul 2026 00:10:41 GMT

Connector and cable maker Alltop is signaling that global demand trends may increasingly favor AI infrastructure and a later recovery in electric vehicles, with its latest outlook pointing to a stronger second half of 2026. The company also said it is adjusting its product mix, capacity, and costs to navigate shifting customer demand worldwide.

LG Electronics creates robot business center to scale physical AI and robotics supply chain

DIGITIMES — Thu, 2 Jul 2026 00:08:35 GMT

LG Electronics announced the creation of a robot business center to accelerate its physical AI and robotics efforts, the company said. The new organization will consolidate development, supply chain and manufacturing resources and will report directly to the chief executive, signaling that robotics is a core growth area following the unveiling of the CLOiD home robot at CES 2026.

Hotai Motor trims Taiwan auto market outlook but keeps 2026 sales target

DIGITIMES — Thu, 2 Jul 2026 00:07:36 GMT

Hotai Motor has cut its 2026 Taiwan auto market forecast, signaling softer demand may linger after tariff-related weakness in the first half. The move matters beyond Taiwan because shortages of hybrids, electric vehicles, and US-made models continue to shape availability and pricing for global buyers, automakers, and suppliers.

Tesla jumps to second as Taiwan auto sales rebound in June

DIGITIMES — Thu, 2 Jul 2026 00:05:21 GMT

Taiwan's auto market posted a strong rebound in June 2026, signaling firmer demand in a key Asian economy watched by global carmakers. Registrations rose sharply in the month and year, led by Toyota's steady performance and a surge in Tesla deliveries that reshaped the local ranking.

Huawei raises prices despite China smartphone gains, exposing AI cost squeeze

DIGITIMES — Wed, 1 Jul 2026 23:54:29 GMT

Huawei's planned July price increase shows that China's smartphone cost crunch has moved from supplier negotiations to consumer pricing, even for a domestic brand gaining market share.

Sovereign connectivity race accelerates: Japan readies subsidy for Rakuten-led satellite network

DIGITIMES — Wed, 1 Jul 2026 23:53:58 GMT

Japan is preparing to support a Rakuten-led low-Earth orbit satellite communications project, as the country looks to reduce reliance on foreign satellite networks and build a domestic direct-to-mobile connectivity layer for disasters, remote areas, and future digital infrastructure.

GIS pivots to semiconductors and optics as memory shortages hit touch demand

Eifeh Strom — Wed, 1 Jul 2026 23:53:11 GMT

Touch module maker General Interface Solution Holding (GIS) said the second half of 2026 will be more challenging as global memory shortages weaken end-market demand, compounded by the planned year-end closure of Sharp subsidiary Sakai Display Products' (SDP) large-size display panel plant.

Samsung exec calls for nuclear expansion to support Gwangju fab plan

DIGITIMES — Wed, 1 Jul 2026 23:52:51 GMT

Samsung Electronics' plan to build two new semiconductor fabs in Gwangju is turning South Korea's southwest chip push into a test of whether the country can deliver enough power, water and permits to support a second major production base outside the Seoul metropolitan area.

Samsung showcases 3D stacked transistor breakthrough for next-gen chips

DIGITIMES — Wed, 1 Jul 2026 23:52:37 GMT

Samsung Electronics has unveiled new research on a three-dimensional transistor architecture that it says could help extend logic chip scaling beyond the limits of today's semiconductor designs, as the industry searches for ways to improve performance after decades of shrinking transistor dimensions.

GaAs and InP price hikes hit Taiwan supply chain

Lily Hess — Wed, 1 Jul 2026 23:52:15 GMT

Compound semiconductor epitaxy makers are raising prices again for gallium arsenide (GaAs) and indium phosphide (InP) epi wafers, as persistent raw material cost increases, supply chain shortages, and inflation continue to weigh on the industry. Taiwanese suppliers warn that output in the second half of the year remains tied to material restrictions.

AI server demand drives MiTAC to expand in Taiwan, Vietnam, and California

Lily Hess — Wed, 1 Jul 2026 23:51:53 GMT

MiTAC Holdings' subsidiary, MiTAC Computing Technology, has won strong demand from US cloud customers, driving a sharp rise in orders and a global expansion plan from Asia to North America starting in 2025. With new capacity set to come online in 2026 and additional North American output in the second half of the year, the company expects a clear uplift in operations.

General-purpose server shipments surge, boosting Taiwanese connector makers

Lily Hess — Wed, 1 Jul 2026 23:51:38 GMT

Agentic AI demand is driving major US cloud providers such as Google and Amazon to expand data centers, lifting global server shipments and triggering a new wave of orders for Taiwan connector makers. DIGITIMES Research expects worldwide server shipments to grow more than 19% in 2026, approaching 20 million units.

Cloud AI squeezes 2nm capacity, pressuring mobile SoCs

Charlene Chen — Wed, 1 Jul 2026 23:51:23 GMT

Mobile system-on-chip (SoC) vendors are collectively upgrading flagship platforms to 2nm in 2026. Beyond the need for better specifications, the bigger goal is to avoid the most heavily booked 3nm process and secure more supply.

Taiwan eyes 2028 carbon trading market launch, but experts warn of risks and timing

Willis Ke — Wed, 1 Jul 2026 23:50:57 GMT

Taiwan plans to launch an emissions trading system (ETS) in 2028 as the next phase of its carbon pricing framework — a cap-and-trade market where companies buy and sell permits to emit greenhouse gases. However, environmental researchers and academics caution that the experiences of Japan, South Korea, and the European Union (EU) show that emissions trading markets take years to mature and operate effectively. With Taiwan's own carbon fee only recently taking effect, they argue the government should prioritize policy continuity and give businesses time to internalize carbon costs and implement decarbonization strategies before introducing a cap-and-trade regime.

IBM's 0.7nm chip claim revives debate over semiconductor node naming

Scarlett Yu — Wed, 1 Jul 2026 23:50:11 GMT

As semiconductor manufacturing enters the 2nm era, conventional transistor scaling is approaching its physical limits. On June 25, 2026, IBM unveiled what it described as the world's first sub-1-nanometer chip technology, featuring a 0.7nm (7-angstrom) process node. The research chip integrates nearly 100 billion transistors into an area roughly the size of a fingernail, marking a significant milestone in semiconductor scaling.

Nvidia GPU-network ecosystem tops data center Ethernet switches

Charlene Chen — Wed, 1 Jul 2026 09:26:50 GMT

According to IDC's latest data, Nvidia's networking business has surged to the top, with the company becoming the revenue leader in the global data center Ethernet switch market for the first time in the first quarter of 2026. This is an arena traditionally contested by network equipment vendors such as Arista Networks, Cisco, Huawei, and HPE, with switch chip suppliers such as Broadcom deeply involved.

As Acer nears its 50th anniversary, Stan Shih says 'Business Family' model offers more sustainable future

Scarlett Yu — Wed, 1 Jul 2026 09:19:49 GMT

As the Acer Group approaches its 50th anniversary, founder Stan Shih said the company's greatest legacy is not a single corporation, but what he calls the AAQW Business Family—a network of independently managed companies united by a shared corporate culture rather than family ownership.

Analysis: Apple isn't a victim of memory price surge; it's the biggest winner

DIGITIMES — Wed, 1 Jul 2026 08:55:48 GMT

Every major consumer electronics company has raised prices this year. The reason, in almost every case, is the same: memory costs have surged, driven by AI data center demand that has overwhelmed global DRAM and NAND supply. Apple raised prices on its MacBook and iPad lines, too. However, to group Apple's move with everyone else's is to miss what is actually happening.

Yageo chairman takes control of Anpec board

Charlene Chen — Wed, 1 Jul 2026 08:45:34 GMT

After Yageo confirmed its stake in Taiwanese power management IC maker Anpec, attention has turned to whether the group will deepen its involvement in Anpec's operations as part of a broader consolidation strategy. Anpec previously said that, based on the current understanding between the two companies, Yageo invested because it sees Anpec's operating performance as attractive and wants exposure to the semiconductor industry. Yageo also planned to use its distribution channels to help bring products to international markets and had no intention of intervening in operations. However, Anpec's leadership change suggests the two sides have clearly agreed to deepen cooperation.

Yageo to raise capacitor prices, extending AI cost pressure to EMS and OEM customers

Levi Li — Wed, 1 Jul 2026 08:39:37 GMT

Leading passive components supplier Yageo is reportedly set to raise capacitor prices across the board from July 1, according to supply chain sources. The price hikes will cover tantalum capacitors, multilayer ceramic capacitors (MLCCs), film capacitors, aluminum electrolytic capacitors, and solid capacitors, with average increases ranging from 10-20%. For the first time, the adjustment will also apply to direct customers, including EMS and OEM manufacturers.

Surging oil prices drive demand spike in Europe's used EV market

Kevin Wang — Wed, 1 Jul 2026 08:21:51 GMT

Rising oil prices as a result of the war in Iran have caused the originally sluggish used electric vehicle (EV) market in Europe to flip, with demand now outpacing supply. Three-year-old used EVs are now priced at around EUR20,000, falling within reach of most consumers, while also offering lower long-term charging costs than fuel for internal combustion engine (ICE) vehicles. However, it remains to be seen how long this demand surge will last.

OpenAI engineers claim to discover way to cut inference costs in half

DIGITIMES — Wed, 1 Jul 2026 07:58:18 GMT

OpenAI engineers claim to have figured out a way to halve the costs of inference using its models, according to The Information. The development comes as AI model developers are seeking to raise their models' token efficiency during a time when enterprise users are being saddled with enormous AI-usage bills.

TMY Technology clears Taiwan listing review, satellite and defense businesses drive turnaround

Scarlett Yu — Wed, 1 Jul 2026 07:45:08 GMT

The Taiwan Stock Exchange (TWSE) Listing Review Committee approved TMY Technology Inc.'s application to list on the Taiwan Innovation Board (TIB) on June 30. The proposed listing remains subject to final approval by the TWSE board of directors.

Samsung, SK Hynix southwest fab plans put Gwangju's silicon photonics ambitions in focus

Sherri Wang — Wed, 1 Jul 2026 07:31:39 GMT

Samsung Electronics' and SK Hynix's planned memory investments in South Korea's southwest have mostly been viewed as a push to balance regional development and tap into local renewable energy.

Tenstorrent's Jim Keller says startup will outpace Cerebras as AI chip competition intensifies

Jingyue Hsiao — Wed, 1 Jul 2026 07:28:03 GMT

AI chip competition is widening beyond raw performance, a shift that matters for global cloud providers, device makers, and investors. Tenstorrent chief executive Jim Keller says the startup can outdo Cerebras, while also courting Intel, Qualcomm, and hyperscalers for licensing deals, acquisitions, and future chip deployments.

Tesla taps Intel 18A veteran to lead Terafab chip project in Texas

DIGITIMES — Wed, 1 Jul 2026 07:06:18 GMT

Tesla has hired Gary Jiang, a nearly 18-year Intel manufacturing veteran, as director of its Terafab chip project in Texas, marking the first publicly identified senior leadership appointment tied to Elon Musk's ambitious semiconductor manufacturing plan.

China's humanoid robot boom turns physical AI from prototype to production

DIGITIMES — Wed, 1 Jul 2026 06:53:56 GMT

China's humanoid robot sector is moving faster than expected, with new unicorns, policy support and maturing supply chains pushing physical AI from lab validation toward early deployment.

Supermicro smuggling probes reportedly push Nvidia to tighten AI server checks further

Charlene Chen — Wed, 1 Jul 2026 06:52:32 GMT

As the US tightens controls on advanced AI chip exports, smuggling schemes are surfacing across the AI server supply chain, driven by soaring Chinese demand for AI servers from buyers like Alibaba and Tencent willing to pay almost any price. Supermicro was investigated in the first half of 2026, with executives and employees allegedly bypassing US export controls to divert restricted AI servers and technology to China. Taiwan's Albatron was also reported to be involved, and the case has since escalated: Keelung prosecutors detained Albatron Technology general manager Kevin Lu on Tuesday on suspicion of smuggling Supermicro AI servers to restricted markets.

Samsung Display to expand OLED capacity as foldable demand builds

DIGITIMES — Wed, 1 Jul 2026 06:14:05 GMT

Samsung Display (SDC) is preparing to expand 6th-generation OLED capacity at its A4 plant in Asan, South Chungcheong Province, marking its first new capacity move since the 8.6-generation IT OLED investment it announced in 2023, The Elec reported. Maeil Business Newspaper separately reported Samsung's broader KRW67 trillion Asan investment plan.

Kinpo expects 2H revenue to exceed 1H amid plant ramp

Jingyue Hsiao — Wed, 1 Jul 2026 06:12:33 GMT

Kinpo Electronics said its core operations remained stable despite a first-quarter revenue drop, with global demand patterns, customer model changes, and seasonal softness driving the decline. The company expects a recovery in the second half of 2026 as Thailand's capacity expands, new customers come online, and multiple product lines return to growth.

Albatron GM detained in Nvidia-linked Supermicro smuggling probe as firm moves to install acting chief

DIGITIMES — Wed, 1 Jul 2026 06:05:00 GMT

Taiwan's Keelung prosecutors detained Albatron Technology general manager Kevin Lu on Tuesday on suspicion of smuggling Supermicro AI servers to restricted markets, putting one of Taiwan's most active authorized distributors of American tech brands at the center of a US export control enforcement case.

Gus Technology names Hota Group president as chairman

Jingyue Hsiao — Wed, 1 Jul 2026 06:04:43 GMT

Gus Technology has named Hota Group president Kuo-jung Shen as chairman after a June 30 shareholders' meeting, underscoring a deeper push into batteries, electric mobility, and energy systems. The move could shape supply chains serving vehicle makers, AI data centers, and industrial users as demand for backup power and high-performance batteries expands globally.