DIGITIMES Asia: News and Insight of the Global Supply Chain

Broadcom loses South Korea appeal over fine for alleged coercive Samsung supply deal

DIGITIMES — Fri, 15 May 2026 04:22:47 GMT

Broadcom lost its appeal in South Korea on May 13, 2026, when the Seoul High Court upheld a KRW191 billion (approx. US$130 million) fine for allegedly coercing Samsung Electronics into an unfair three-year supply contract, according to Yonhap and Seoul Economic Daily. The court dismissed challenges brought by Broadcom's US headquarters and three South Korean affiliates against the Korea Fair Trade Commission's corrective order and penalty.

Trump-Xi summit is Nvidia's best shot at getting back into China

Sherri Wang — Fri, 15 May 2026 04:12:14 GMT

US President Donald Trump's meeting with Chinese President Xi Jinping in Beijing this week has put Nvidia's stalled H200 sales in China back in focus, as Washington's export approvals have yet to translate into revenue for the AI chipmaker.

Panel makers cool in April 2026, pivot to CPO and FOPLP

Charlene Chen — Fri, 15 May 2026 03:58:47 GMT

After the early pull-forward effect from customers began to fade, Taiwan's panel makers have started to show signs of slower operating momentum. Weaker demand for consumer electronics dragged down April revenue at AUO, Innolux, HannStar, and Giantplus.

Auras says Nvidia Vera Rubin gold-plating change won't hit operations as revenue, profit jump

DIGITIMES — Fri, 15 May 2026 03:36:09 GMT

Auras Technology reported record first-quarter results and said it expects revenue and profit to grow quarter by quarter in 2026, dismissing market talk that a design tweak on Nvidia's Vera Rubin server cooling system would harm its business. The cooling-module maker posted first-quarter revenue of NT$49.038 billion (approx. US$1.56 billion), up 110.17% year-over-year, gross profit of NT$14.597 billion, up 142.15%, operating profit of NT$12.019 billion, up 175.6%, and net profit after tax of NT$7.916 billion, or NT$20.17 per share.

Samsung strike risk lifts memory spot prices as supply risks mount

Sherri Wang — Fri, 15 May 2026 03:02:47 GMT

Samsung Electronics' escalating labor dispute is adding fresh uncertainty to the memory market, with spot prices moving higher as South Korea's government pushes management and labor to resume talks ahead of a planned 18-day strike.

Nvidia H200 sales to China stall despite US approval

DIGITIMES — Fri, 15 May 2026 03:00:54 GMT

The US has cleared around 10 Chinese companies to buy Nvidia's H200 artificial intelligence chips, but no deliveries have been made, suggesting that Washington's approval alone may not be enough to revive the company's high-end China business.

US-China ties shift toward balancing tech pressure with controlled competition

Jingyue Hsiao — Fri, 15 May 2026 02:44:49 GMT

The US is signaling a shift toward constrained high-intensity competition with China, seeking to preserve technological advantage while creating mechanisms to allow limited economic engagement, according to remarks by US Treasury Secretary Scott Bessent during the Trump-Xi summit.

Lei Jun, Musk and Cook converge at China-US state dinner

Jingyue Hsiao — Fri, 15 May 2026 02:42:57 GMT

At a state dinner on the evening of May 14 during the China-US summit, Chinese and global tech leaders mingled on stage, with Xiaomi chairman and CEO Lei Jun photographed taking a selfie with Tesla CEO Elon Musk and Apple CEO Tim Cook.

UMC rolls out 14nm FinFET platform for OLED driver ICs

Sherri Wang — Fri, 15 May 2026 02:40:48 GMT

United Microelectronics Corp. (UMC) has released a 14nm embedded high-voltage (eHV) FinFET technology platform for display driver ICs, marking a new step in the foundry's process roadmap after years of development.

Foxconn moves from validation to commercialization with AI servers, robots, EVs and LEO satellites

DIGITIMES — Fri, 15 May 2026 02:38:38 GMT

Foxconn used its first quarter of 2026 earnings call to signal that its long-term "3+3+3" strategy is transitioning from technical validation into commercialization, highlighting growth in AI servers and advances across smart manufacturing, electric vehicles, semiconductors, and low-Earth-orbit communications. The group also framed its COMPUTEX 2026 positioning as a "Token Factory" to signal a broader role in the AI era, executives said.

Pan-International shifts to AI servers and AFM motors to drive over half of revenue by 2030

DIGITIMES — Fri, 15 May 2026 02:35:49 GMT

Pan-International Industrial Corp. said it recorded about NT$1.25 billion (US$39.62 million) in revenue and a small loss in the first quarter of 2026 after customers deferred shipments and copper prices rose. The company called the period its annual operating trough, announced measures to stabilize results and expected a significant recovery and a return to profitability in the second quarter.

TECO bets on Penang manufacturing hub to capture Southeast Asia data center opportunities

DIGITIMES — Fri, 15 May 2026 02:33:17 GMT

TECO Electric & Machinery reported first-quarter 2026 revenue of NT$14.235 billion (US$451.17 million), a 4.54% year-over-year increase, and earnings per share of NT$0.51, as executives said the company's power and energy business grew more than 30% and rose to a 24.5% share of revenue from 19% a year earlier. The firm announced plans to expand its Southeast Asia footprint by acquiring a majority stake in Malaysia's Dynaciate Engineering and bringing a new Penang Busway manufacturing plant into volume production to serve the region's data center market.

Analysis: Nvidia ramped up AI investments to US$45.3 billion in 2026, reshaping AI supply chain

DIGITIMES — Fri, 15 May 2026 02:26:32 GMT

Nvidia expanded a rapid investment campaign in 2026, deploying US$17.5 billion in the fiscal year that ended January 25, 2026, and topping US$45.3 billion so far in 2026, according to the company's financial disclosures and PitchBook data. Executives framed the activity as targeted moves across model providers, compute and cloud firms, and hardware and optical interconnect suppliers aimed at securing end demand and reducing bottlenecks in the AI inference stack.

SMIC leverages process flexibility to capture orders amid global foundry capacity squeeze

DIGITIMES — Fri, 15 May 2026 02:14:45 GMT

In its first-quarter 2026 earnings Q&A session on May 15, Semiconductor Manufacturing International Corporation (SMIC) outlined a strategic response to shifting global market dynamics. As leading international foundries and integrated device manufacturers (IDMs) pivot capacity toward high-margin AI processors and High Bandwidth Memory (HBM), SMIC has seen a significant influx of orders for standard and specialty products from customers seeking to secure a reliable supply.

OpenAI and Apple partnership frays as legal threat looms

DIGITIMES — Fri, 15 May 2026 02:10:06 GMT

Tensions are escalating between OpenAI and Apple, threatening what was once seen as one of the most important alliances in the generative AI industry.

Applied Materials scales manufacturing and innovation to meet AI demand

DIGITIMES — Fri, 15 May 2026 02:02:53 GMT

Following record second-quarter 2026 financial results, Applied Materials has detailed an extensive strategy to scale its global manufacturing capacity and accelerate technology commercialization through new collaborative platforms. As the semiconductor industry pivots toward artificial intelligence (AI) infrastructure, the company is leveraging improved customer visibility to prepare its supply chain for a sustained growth cycle expected to last into 2027 and beyond.

Analysis: Europe embraces Chinese EVs while North America loses momentum

Elaine Chen — Fri, 15 May 2026 02:01:54 GMT

Despite persistent uncertainty in the global economy, volatility in energy markets is accelerating a structural shift in the auto industry. New data released May 13 by the consultancy Benchmark Mineral Intelligence shows that surging gasoline prices — driven in large part by turmoil in the Middle East — pushed global electric-vehicle demand higher for a second consecutive month in April 2026, as consumers increasingly turn away from conventional combustion-engine cars.

Hua Hong Semiconductor strategy focuses on AI demand and specialty tech expansion

DIGITIMES — Fri, 15 May 2026 01:58:13 GMT

Hua Hong Semiconductor is positioning itself to capitalize on the accelerating transformation of the global semiconductor industry, driven primarily by the "unmistakably positive impact of AI" on market demand. During its first-quarter 2026 earnings call on May 14, 2026, the company outlined a multi-pronged strategy to enhance its position as a leader in specialty process technologies while expanding into nascent, high-growth sectors.

Malaysia's Arm-backed chip push lifts Oppstar, SkyeChip as startup ambitions expand beyond packaging

DIGITIMES — Fri, 15 May 2026 01:45:18 GMT

Malaysia is accelerating efforts to expand beyond semiconductor assembly and testing into chip design, following a government-backed initiative tied to access to Arm technology.

SMIC refocuses on capital investment over dividends as AI boom reshapes demand

DIGITIMES — Fri, 15 May 2026 01:42:08 GMT

During its first-quarter 2026 earnings call on May 15, Semiconductor Manufacturing International Corporation (SMIC) detailed a strategic realignment of its operations to capitalize on the "AI boom" while maintaining a rigorous investment schedule. The company emphasized that it is currently in a "critical stage of capacity expansion" and is continuously pushing to enhance its competitive standing, leading to significant shifts in how it allocates resources and returns value to shareholders.

Quanta hits record revenue but margin pays the price for AI server ramp

DIGITIMES — Fri, 15 May 2026 01:30:28 GMT

Quanta posted record revenue and earnings per share for the first quarter of 2026, but gross margin collapsed as the company absorbed costs tied to a rapid shift into high-priced GPU-based AI servers.

Edge AI is transforming wearables into proactive health and sensing platforms

DIGITIMES — Fri, 15 May 2026 01:22:28 GMT

Edge AI is accelerating across consumer devices and is increasingly embedded in wearables, reshaping smartwatches, earbuds, and smart rings into proactive sensing and response endpoints, industry research showed. Market analysts describe this shift as unfolding now and expected to deepen through 2032, with wearables moving from passive connected accessories to devices that sense, understand, and act on user status and environment in real time.

Foxconn's operating profit jumps 63% as AI server scale offsets seasonal dip

Eifeh Strom — Fri, 15 May 2026 00:44:17 GMT

Hon Hai Precision Industry (Foxconn) reported first-quarter 2026 consolidated revenue of NT$2.11 trillion (approximately US$66.95 billion), up 29.68% year over year but down 19% from the fourth quarter of 2025 due to seasonal factors. Core profitability improved despite the slowdown.

Hua Hong bets US$6bn on Wuxi as specialty chip demand lifts margins

DIGITIMES — Fri, 15 May 2026 00:40:03 GMT

Hua Hong Semiconductor is accelerating its growth strategy through significant capacity expansion and the development of specialty technologies to meet rising global demand. During its latest earnings call on May 14, the company highlighted robust financial performance driven by emerging applications in artificial intelligence and power management.

Applied Materials posts 25-year margin high as agentic AI drives equipment boom

DIGITIMES — Fri, 15 May 2026 00:37:17 GMT

Applied Materials delivered record revenue and earnings in its second fiscal quarter of fiscal 2026, signaling a robust expansion in the semiconductor equipment market driven by the global build-out of artificial intelligence (AI) infrastructure.

SMIC beats margin guidance even as operating profit slides

DIGITIMES — Fri, 15 May 2026 00:34:54 GMT

On May 14, Semiconductor Manufacturing International Corporation (SMIC) released its unaudited financial results for the first quarter of 2026, reporting a modest quarterly revenue increase alongside a double-digit year-over-year gain. The company recorded revenue of US$2,505 million for the period, a 0.7% increase from US$2,489 million in the final quarter of 2025. This performance reflects an 11.5% growth compared to the US$2,247 million generated during the same quarter of the previous year.

Foxconn says AI server mix and consignment model will drive annual shipments to more than double

DIGITIMES — Fri, 15 May 2026 00:31:13 GMT

Foxconn (Hon Hai) held an online investor briefing on May 14, where executives outlined that cloud and networking products accounted for nearly 50% of group revenue in the first quarter of 2026 and that AI server shipments will more than double year-over-year for 2026. The company said a shift toward consignment supply for some AI server transactions has depressed reported revenue sequentially but did not affect overall profitability and helped reduce working capital and improve capital efficiency.

TCL tightens grip on Guangzhou LCD hub, unleashes US$4 billion OLED expansion

DIGITIMES — Fri, 15 May 2026 00:30:59 GMT

China's TCL Technology is deepening its control over its Guangzhou display manufacturing base while accelerating OLED investment, reflecting its broader push to cement a leading position across both LCD and OLED markets.

Ubiqconn Technology reports improved gross margin in the first quarter as product mix shifts

DIGITIMES — Fri, 15 May 2026 00:30:45 GMT

Ubiqconn Technology reported consolidated revenue of NT$130 million in April 2026, down 25% month-over-month and down 20% year-over-year, and cumulative revenue for the first four months of 2026 totaled NT$678 million, a 12% decline from a year earlier. The firm said short-term revenue was affected by market demand adjustments, but ongoing product mix optimization had begun to drive structural, differentiated growth across its end markets.

Faster AI servers drive a shift to advanced PCB technologies

Elaine Chen — Fri, 15 May 2026 00:22:52 GMT

The global buildout of artificial intelligence data centers is driving a new wave of demand for high-speed networking infrastructure, as the efficiency of communication between servers becomes increasingly critical.

InP compound semiconductors break AI power and bandwidth barriers

Charlene Chen — Thu, 14 May 2026 23:36:22 GMT

Indium phosphide (InP) and other compound semiconductors are taking on a bigger role as demand rises for highly efficient light emission and ultra-high-frequency transmission. Their lower electron scattering and lower loss characteristics position them to help break through AI's energy and bandwidth barriers.

Etron chair warns of US-South Korea alliance threatening Taiwan's chip industry

Charlene Chen — Thu, 14 May 2026 23:35:50 GMT

Memory industry profits have surged, and Samsung Electronics recently posted earnings that exceeded TSMC's revenue for the first quarter of 2026, underscoring memory's rise as a strategic resource. Etron Chairman Nicky Lu warned that amid global geopolitical shifts, the US and South Korea are highly likely to move toward a deep alliance that could pose a formidable challenge to Taiwan's semiconductor industry over the next 10 years.

Chunghwa Telecom expands satellite ambitions across multiple orbits

Elaine Chen — Thu, 14 May 2026 23:35:26 GMT

The global satellite industry is entering what many executives and analysts describe as a historic turning point, as telecommunications operators increasingly integrate satellite connectivity into mainstream communications infrastructure and commercial services.

Apple confronts the AI agent era — is the App Store at risk?

DIGITIMES — Thu, 14 May 2026 23:09:13 GMT

Artificial intelligence has become one of Apple's most complicated strategic challenges. At next month's Worldwide Developers Conference, the company is expected to unveil a broader AI push, including a revamped Siri and deeper generative AI integration across its devices. But behind the scenes, Apple is grappling with a larger question: how to maintain control of the App Store in an era increasingly shaped by autonomous AI agents.

Column: The new space arms race is being fought with AI, lasers, and autonomous satellites

Elaine Chen — Thu, 14 May 2026 23:08:40 GMT

The emerging space arms race toward 2030 is no longer defined simply by the number of satellites nations can launch into orbit. Increasingly, it is being shaped by breakthroughs in advanced communications, artificial intelligence (AI), orbital logistics, and rapid launch systems, technologies that could redefine military power in space over the next decade.

Foxconn targets 3Q26 CPO switch mass production, eyes multifold 2027 growth

DIGITIMES — Thu, 14 May 2026 23:08:11 GMT

Foxconn announced at an online investor briefing on May 14 that its common-package optics (CPO) switches are scheduled for mass production and shipments beginning in the third quarter of 2026, with an annual shipment target of around ten thousand units. Executives said current visibility points to shipments expanding several times in 2027.

Nan Ya PCB targets high-end IC substrate growth amid AI demand

Jingyue Hsiao — Thu, 14 May 2026 23:07:45 GMT

Nan Ya PCB's push into advanced IC substrates could influence global AI hardware supply chains by increasing capacity for high-performance GPUs, switches, and edge AI devices. The company's 2026 development plans and use of parent-group factories in southern Taiwan aim to meet accelerating AI-related demand as well as higher automotive and mobile sector requirements.

Taiwan touch panel makers post mixed 1Q26 results on consolidation and uneven demand

Willis Ke — Thu, 14 May 2026 23:07:20 GMT

Taiwan's touch panel makers posted mixed first-quarter 2026 results. TPK Holding led the sector after consolidating display driver IC maker Ilitek, boosting revenue, margins, and net profit despite ongoing core operating losses. In contrast, GIS Holding remained in the red amid weak demand visibility, while YoungFast Optoelectronics increasingly relied on electromechanical and gaming-related products to cushion softness in its traditional business.

WeMo unveils dual-scooter service and plans cross-platform integration by 2026

DIGITIMES — Thu, 14 May 2026 23:06:10 GMT

Taiwan scooter-sharing leader WeMo on May 12 announced a major service upgrade that introduced a new white-license model, dubbed WeMo Go, and signaled plans to integrate its platform with multiple mobility and payment services by the end of 2026. The company said the move launches a dual electric-scooter era designed to expand user choice and scale shared mobility across Taiwan.

Taiwan IC revenue surges 29% in 1Q26, full-year outlook tops US$270 billion

DIGITIMES — Thu, 14 May 2026 23:05:37 GMT

Explosive AI-driven demand and a booming memory rebound push Taiwan's chip industry to NT$1.93 trillion (approx. US$61.9 billion) in the first quarter of 2026, with foundry and memory segments leading the charge.

South Korea denies plan to share semiconductor tax windfall with citizens

Elaine Chen — Thu, 14 May 2026 23:04:36 GMT

A political debate in South Korea over how to manage windfall tax revenues from the country's semiconductor boom has intensified after remarks by a senior presidential aide sparked widespread controversy and conflicting media reports.

China's auto market pivots to EVs as profits erode

Elaine Chen — Thu, 14 May 2026 23:03:43 GMT

Rising oil prices tied to Middle East tensions have accelerated a structural shift in China's auto market, even as weakening domestic demand and intensifying price competition squeeze industry profits.

Analysis: Why hackers target Foxconn—the blueprint economy that puts every smart factory at risk

Jingyue Hsiao — Thu, 14 May 2026 23:03:16 GMT

Foxconn confirmed a cyberattack on some of its North American facilities on May 12. Affected plants continued normal production, the company said, while its cybersecurity team activated emergency response measures. Beyond that, Foxconn offered little — a terse acknowledgment from one of the world's most consequential manufacturers. Reports have since named its Mount Pleasant, Wisconsin, plant as the likely point of origin.

AI server tracker: Optical module suppliers show mixed momentum as AI networking demand reshapes market

DIGITIMES — Thu, 14 May 2026 23:01:52 GMT

Taiwan's optical module supply chain delivered mixed April 2026 results, reflecting uneven demand patterns across AI infrastructure and data center networking markets. According to the latest data, the overall April revenue reached approximately NT$2.1 billion (US$66.6 million), down 7.4% month-over-month but still up 1.2% year-over-year. Cumulative revenue for the sector remained strong, rising nearly 20% year-over-year.

Interview: The 6G clock is ticking — and Ericsson wants Taiwan in its corner

Jingyue Hsiao — Thu, 14 May 2026 23:01:22 GMT

The global mobile standards race has moved into the 6G prelude, with Ericsson saying the first fully implementable 6G specification is expected as early as March 2029. In an exclusive interview with DIGITIMES, Marie Hogan, who leads the 6G portfolio strategy for Ericsson's global networks business, said 3GPP is pushing ahead with 6G standardization as the industry weighs the technology's AI-native design, uplink demands, and migration path from 5G.

Taiwan panel industry transforms by riding the AI wave into microLED optical communications

DIGITIMES — Thu, 14 May 2026 08:49:01 GMT

Under the AI boom, microLED optical communication is expected to become a key opportunity for the display industry's transformation.