DIGITIMES: News and Insight of the Global Supply Chain

India moves beyond electronics assembly as new approvals deepen component and equipment ambitions

DIGITIMES — Tue, 18 Aug 2026 02:50:30 GMT

India is moving into the next phase of its electronics manufacturing strategy, using its progress in downstream assembly as a base to build domestic capabilities in components, materials, and manufacturing equipment.

Arm faces capacity squeeze as CPU demand tops US$2 billion

DIGITIMES — Tue, 18 Aug 2026 02:46:59 GMT

Arm Holdings' expansion from asset-light IP licensing into finished data center processors is putting the company into direct competition for wafer and memory capacity just as demand for its new AGI CPU exceeds US$2 billion.

Eiso Enterprise's Guishan plant expansion doubles PCB capacity, eyes AI, aerospace, defense markets

Eifeh Strom — Tue, 18 Aug 2026 02:33:58 GMT

Niche printed circuit board (PCB) manufacturer Eiso Enterprise has officially opened the second-phase expansion of its new plant in Guishan, Taiwan, which is expected to raise the company's overall monthly production capacity to 1.5 times the previous level.

AI server supply chain ramps up capital, talent, and capacity

Yunnie Cheng — Tue, 18 Aug 2026 02:19:01 GMT

The AI server supply chain continues to expand capital expenditures, pouring in cash, building factories, and hiring aggressively, to heighten barriers to entry. On top of rapid product iterations and increasingly complex designs, the competitive gap between players is widening. Multiple supply chain sources note that the AI server ecosystem will become more concentrated: top players will continue to secure large orders while gaining leverage to negotiate better commercial terms with customers.

Why AMD still owns US$565M of SpaceX shares after Musk chose Nvidia

Levi Li — Tue, 18 Aug 2026 02:07:07 GMT

Elon Musk has made SpaceX's AI hardware strategy unusually clear: future infrastructure will rely exclusively on Nvidia chips and technology. Yet AMD, Nvidia's largest rival in AI accelerators, still owns roughly 3.3 million SpaceX shares worth more than US$565 million.

Taiwan advances national quantum computing plan as key procurement contract nears

Lily Hess — Tue, 18 Aug 2026 02:03:52 GMT

Taiwan's National Science and Technology Council (NSTC) is preparing the second-phase quantum research program, known as the "Quantum Leap Project," for 2027 to 2031, while a Request for Proposal for the National Center for High-Performance Computing's (NCHC) quantum computing (QC) host is expected soon. The move has raised questions over whether NSTC Minister Wu Cheng-wen's recent US trip could include talks with leading quantum computing companies on potential Taiwan-US cooperation.

ByteDance and Hollywood reach copyright pact for AI video and image tools

DIGITIMES — Tue, 18 Aug 2026 01:59:34 GMT

ByteDance and the Motion Picture Association (MPA) have reached an agreement to strengthen copyright safeguards for the Chinese tech giant's AI video and image-generation models, marking a notable shift from confrontation toward cooperation over generative AI and intellectual property.

Humanoid robots expose the limits of chasing higher TOPS

Levi Li — Tue, 18 Aug 2026 01:43:52 GMT

Humanoid robots are moving from demonstrations toward mass production, changing the priorities of chip design. Instead of simply chasing higher AI compute and TOPS, or trillions of operations per second, the industry is increasingly focused on how efficiently perception, computing, decision-making, and control can work together within tight power, cost, and latency constraints.

South Korea-India venture Indichem targets semiconductor materials supply chain without China

DIGITIMES — Tue, 18 Aug 2026 01:42:31 GMT

A new joint venture between South Korean and Indian chemical firms is betting that semiconductor materials can be made without touching China at any stage, positioning itself as an alternative supply route just as the US-China conflict pushes chipmakers to rethink where their raw materials come from.

H3 launch ramp pushes Mitsubishi Electric toward a new era of parallel satellite production

DIGITIMES — Mon, 17 Aug 2026 23:54:44 GMT

The expansion of Mitsubishi Electric's satellite manufacturing business is converging with the higher launch cadence targeted for Japan's H3 program, developed jointly by JAXA and Mitsubishi Heavy Industries (MHI).

SpaceX-Cursor acquisition closes the loop between AI compute, models and applications

DIGITIMES — Mon, 17 Aug 2026 23:54:28 GMT

As the AI race increasingly evolves around who can secure the most compute, develop the strongest models and convert them into commercially viable applications, SpaceX has moved another step toward controlling all three layers under one expanding ecosystem.

MediaTek widens ASIC services as market share surges

Lily Hess — Mon, 17 Aug 2026 23:53:32 GMT

MediaTek has reportedly landed major orders for Google TPU products in recent years, even appearing to challenge Broadcom's position. At a recent earnings call, MediaTek also raised its 2027 ASIC market share target to 15% to 20%, and industry watchers largely credit that goal to the breadth of MediaTek's ASIC services.

Hybrids dominate Taiwan's auto market, as carmakers intensify push with new models

Kevin Wang — Mon, 17 Aug 2026 23:53:06 GMT

Sales of hybrid vehicles have surged in Taiwan due to range anxiety and still-inadequate charging infrastructure, and carmakers are leaning into this trend by stepping up efforts in this market segment.

ITH OLED, T-Con ramps position 3Q26 revenue to defy market headwinds

Yunnie Cheng — Mon, 17 Aug 2026 23:52:27 GMT

Driven by a recovery across smartphone, notebook, industrial control, and automotive applications, ITH Corporation, the parent company of Ili Technology (Ilitek), posted solid revenue results in the second quarter of 2026. However, its gross margin took a hit of about 8.1 percentage points after it recognized a one-time liability provision because wafer starts fell short of volumes reserved under an agreement with a supplier.

Column: Why model training needs distillation

Charlene Chen — Mon, 17 Aug 2026 23:52:09 GMT

Around 2019, a friend working at a large cloud services provider excitedly shared that his team had trained a CNN model for document text recognition with good results, but the computing cost was too high to deploy directly. They then used distillation to train a smaller model for service, and it turned out to be highly effective.

Tech blocs of the new Cold War: US pushes allies to pick a side

DIGITIMES — Mon, 17 Aug 2026 23:51:28 GMT

The intensifying US-China technology rivalry is moving beyond export controls and semiconductor restrictions. What comes next could matter more: the formation of competing international AI ecosystems.

AI server demand pushes high-end MLCC lead times toward 40 weeks

DIGITIMES — Mon, 17 Aug 2026 23:50:51 GMT

Multilayer ceramic capacitor (MLCC) supply is increasingly diverging by product specification, with mainstream components remaining relatively stable while lead times for some high-capacitance, high-specification parts used in AI servers stretch toward 40 weeks.

Column: Strategic resilience in precious metal refining: insights from Qiankun Gold and Silver

Yunnie Cheng — Mon, 17 Aug 2026 23:50:32 GMT

Amid global supply chain restructuring and geopolitical rivalry, precious metals are no longer merely financial hedging tools but have become core assets supporting high-tech manufacturing and strategic material reserves.

SpaceX, NVIDIA push space AI from lunar exploration toward orbital data centers

Scarlett Yu — Mon, 17 Aug 2026 23:50:03 GMT

As SpaceX accelerates its push into space-based AI data centers and NVIDIA brings Jetson GPUs into lunar exploration missions, the race to build computing infrastructure beyond Earth is moving from proof-of-concept experiments toward actual deployment.

WeRide weighs expansion into Australia, Japan, South Korea, and SEA

Jingyue Hsiao — Mon, 17 Aug 2026 23:49:22 GMT

Chinese autonomous driving company WeRide is considering expansion into Australia, South Korea, Japan, and Southeast Asia as it steps up overseas growth. The move could widen access to driverless transport services for global users, while intensifying competition among Chinese self-driving firms seeking new markets beyond China.

European industrial suppliers gain from AI data center buildout

DIGITIMES — Mon, 17 Aug 2026 23:49:01 GMT

European makers of vacuum pumps, heat exchangers, and industrial gases are seeing new demand from the rapid buildout of AI factories, according to Bloomberg. The shift is giving investors fresh ways to gain exposure to artificial intelligence through industrial suppliers tied to semiconductor plants and data centers.

OpenAI revenue chief to exit as company advances IPO preparations

DIGITIMES — Mon, 17 Aug 2026 23:48:46 GMT

OpenAI said its revenue chief, Denise Dresser, will step down after less than a year in the role, adding another senior departure as the artificial intelligence company moves through IPO preparations. She said on LinkedIn that she was honored to support AI development and will stay briefly to help with the transition.

South Korea telcos pass KRW1 trillion in first-half AI data center revenue

DIGITIMES — Mon, 17 Aug 2026 23:48:27 GMT

South Korea's three major telecom operators generated more than KRW1 trillion (approx. US$706 billion) in combined artificial intelligence data center revenue in the first half of 2026, as demand for AI computing lifted utilization across their facilities. The companies are now expanding capacity in stages, with carriers saying they want to secure customer demand before committing to larger investments.

High jet fuel costs could squeeze low-cost airlines for months

DIGITIMES — Mon, 17 Aug 2026 10:34:36 GMT

Jet fuel prices may remain elevated for months even if geopolitical tensions ease, the challenge stemming not only from crude supply but also from global refining capacity already operating near full utilization, leaving no room to increase output of refined products.

Ennoconn's US$8B backlog sets up stronger 2H26 on AI and Kontron gains

Levi Li — Mon, 17 Aug 2026 10:25:19 GMT

Ennoconn expects profitability to improve in the second half of 2026 as higher-margin software, AI systems and solution businesses gain weight and low-margin operations are phased out. The industrial PC supplier reported second-quarter revenue of NT$48.38 billion (approx. US$1.52 billion), while revenue for the first half of the year reached NT$85.49 billion.

Taiwan Mobile lifts 2026 profit outlook on AI data center push

Lily Hess — Mon, 17 Aug 2026 08:54:50 GMT

Taiwan Mobile has raised its full-year 2026 operating profit growth outlook to 7% to 9%, excluding the impact of its planned Systex acquisition, as AI applications continue to drive demand for data center computing power and spur the company's AI data center (AIDC) expansion.

SK keyfoundry expands 8-inch capacity as China demand strains supply

DIGITIMES — Mon, 17 Aug 2026 08:50:16 GMT

SK keyfoundry has approved KRW90 billion (approx. US$64 million) in capital spending to expand its 8-inch foundry capacity, a rare move for a company that has long prioritized maintaining existing production lines.

TSMC overseas fabs see profit flip in 1H26

Charlene Chen — Mon, 17 Aug 2026 08:06:05 GMT

Since 2020, when TSMC began its overseas manufacturing buildout, the company has tracked financial results at its foreign subsidiaries across the first half of 2025, full-year 2025, and the first half of 2026. The Arizona fab, long seen as difficult to make profitable, has expanded sharply, while Japan's JASM has turned from loss to profit, China operations have remained stable, and Germany's ESMC is still in the red as it remains under construction.

Lightmatter sets optical interconnect blueprint as AI hits copper wall

Charlene Chen — Mon, 17 Aug 2026 08:03:29 GMT

AI data centers are approaching a physical limit: as scale-up architectures stretch across multiple racks and SerDes speeds near 448G, copper's effective transmission distance is shrinking to just a few dozen centimeters, accelerating the industry's shift toward all-optical interconnect architectures.

Phison CEO sees years of NAND shortage, AI growth chance

Lily Hess — Mon, 17 Aug 2026 07:39:28 GMT

Phison Electronics CEO Pua Khein-Seng said the company is seizing a once-in-a-lifetime chance to transform into a high-growth business as AI agents drive massive demand, keeping NAND Flash supply tight for many years. He said 2027 capacity constraints will be even more severe than in 2026, leaving room for further price gains, though the pace of increases will gradually narrow.

Samsung's China sales overtake US; Nvidia not among top five customers

DIGITIMES — Mon, 17 Aug 2026 07:24:54 GMT

Samsung Electronics' sales to China and the US surged in the first half of 2026 as an AI-driven memory upcycle boosted its semiconductor business, while Nvidia did not rank among the company's five largest customers despite growing ties between the two companies in high-bandwidth memory (HBM).

Record orders, yet profits squeezed: Asia-Pacific electronics supply chain caught in cost crunch

Scarlett Yu — Mon, 17 Aug 2026 07:10:49 GMT

Global Electronics Association survey data show that demand across the global electronics manufacturing industry maintained steady expansion in the first half of 2026, with orders, shipments, and capacity utilization strengthening in most months. Capacity utilization, in particular, reached an all-time high since the survey began in June.

LG-Nvidia physical AI partnership speeds up as robotics chief reportedly heads to South Korea

Scarlett Yu — Mon, 17 Aug 2026 06:28:36 GMT

Less than a week after LG Group and Nvidia signed a strategic memorandum of understanding (MOU), Madison Huang, Nvidia's senior director of product marketing for Omniverse and robotics, is reportedly preparing to visit South Korea and head directly to one of LG's key robotics R&D sites.

Giant warns rising bicycle parts costs will pressure margins

Rodney Chan — Mon, 17 Aug 2026 06:20:00 GMT

Giant said rising raw material prices and price hikes for components from Japanese supplier Shimano, starting from August 2026, will add cost pressure, prompting the bike maker to raise prices on new products to offset the impact. Even so, the company said short-term gross margins are unlikely to hold at prior levels.

China's Vertilite commits US$741M to InP laser chips for AI optical interconnects

Levi Li — Mon, 17 Aug 2026 06:09:23 GMT

Chinese optical chipmaker Jiangsu Vertilite Semiconductor Technology is investing CNY5 billion (approx. US$741 million) in a new communications chip and device R&D and manufacturing base in Changzhou, expanding beyond VCSELs into high-end indium phosphide, or InP, laser chips for AI optical interconnects.