DIGITIMES Asia: News and Insight of the Global Supply Chain

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.

Memory supply crunch pushes Phison to historic earnings

Elaine Chen — Thu, 14 May 2026 08:44:05 GMT

Phison Electronics posted record earnings in April as the artificial intelligence boom and tightening NAND flash supply drove memory prices sharply higher, underscoring the growing influence of AI demand across the semiconductor storage industry.

AI chip boom drives record growth for Taiwan testing firm MPI

Elaine Chen — Thu, 14 May 2026 08:39:28 GMT

With surging demand for artificial intelligence, high-performance computing, and custom AI chips, MPI Corporation said strong momentum in semiconductor testing equipment and testing interface products drove another record quarter, underscoring the rapid expansion of AI-related chip validation demand across the industry.

TSMC expands CoWoS and SoIC capacity on AI boom

Charlene Chen — Thu, 14 May 2026 08:06:57 GMT

TSMC said on May 14, 2026, that it is rapidly expanding CoWoS and SoIC advanced packaging capacity as AI demand drives the construction of 18 new fabs and advanced packaging facilities worldwide. At its 2026 Technology Symposium, TSMC vice president Bor-Zen Tien detailed the company's latest progress in advanced process nodes, 3DFabric advanced packaging, global expansion, and AI-powered smart manufacturing.

QBit Semiconductor targets edge AI growth as copier chips turn oligopolistic

Charlene Chen — Thu, 14 May 2026 07:18:36 GMT

IC design firm QBit Semiconductor will list on the Emerging Stock Board on May 15, 2026, and chairman Simon Shen, a former Kinpo executive, said the debut marks a new milestone for the company and underscores a promising growth outlook.

TSMC symposium spotlights AI expansion, advanced packaging demand

Charlene Chen — Thu, 14 May 2026 07:07:57 GMT

TSMC held its annual technology symposium in Hsinchu on May 14, 2026, after its North America stop, with executives noting that AI applications are rapidly expanding from cloud data centers to edge devices — driving surging demand for semiconductor compute density, high-bandwidth connectivity, power efficiency, and thermal management. Ray Wan, director of Asia-Pacific business, said TSMC will leverage advanced process technology and advanced packaging to help customers accelerate innovation in the AI era.

Japan expands push to secure legacy chip supply chain

DIGITIMES — Thu, 14 May 2026 07:05:51 GMT

Japan is broadening its semiconductor support strategy by expanding subsidies for domestic production of legacy chips, aiming to strengthen economic security and reduce reliance on overseas suppliers.

Tower Semiconductor secures US$1.3 billion in silicon photonics commitments as AI demand accelerates

DIGITIMES — Thu, 14 May 2026 06:52:30 GMT

Tower Semiconductor reported a strong start to 2026, marked by double-digit revenue growth and a significant jump in net profit. Following a "solid" first quarter, the company issued guidance for the second quarter that would represent the highest revenue in its history. Management highlighted surging growth in silicon photonics and a strategic restructuring of manufacturing in Japan as key drivers of long-term expansion.

TSMC SVP: better AI days lie ahead, remember the keyword 'COUPE'

Jingyue Hsiao — Thu, 14 May 2026 06:38:38 GMT

Taiwan Semiconductor Manufacturing Co. (TSMC) used its 2026 Technology Forum on May 14 to outline a sweeping view of the AI-driven transformation in semiconductors. Co-COO and senior vice president Kevin Zhang argued that the AI revolution is advancing far faster than anticipated and is reshaping the industry from generative AI and AI agents to inference computing.

China's fiber optic industry evolved from catch-up to supply chain scale

Charlene Chen — Thu, 14 May 2026 05:47:51 GMT

As demand for AI data centers, high-speed transmission, and cloud infrastructure continues to rise, the fiber-optic industry has once again become a focal point in the global market, with China's supply chain playing a critical role in the expansion. From heavy reliance on overseas technology and materials to building a complete industrial cluster and becoming a major global supplier, China's fiber-optic industry has undergone nearly half a century of technological catch-up and supply-chain growth.

Luxshare targets global auto Tier 1 status with BeijingWest chassis deal after Leoni takeover

DIGITIMES — Thu, 14 May 2026 05:43:12 GMT

China's Luxshare is accelerating its push into the global automotive supply chain through a proposed acquisition of BeijingWest Industries International Limited, marking another major step in its transition from a consumer electronics assembler into a global automotive Tier 1 supplier.

AI surge fuels patent race in server cooling with Taiwan firms among global leaders

DIGITIMES — Thu, 14 May 2026 05:39:43 GMT

A Taiwan Intellectual Property Office report released in 2026 showed that AI demand accelerated a global patent race in data center and server cooling technologies, with Inventec, Foxconn, and Quanta emerging among Taiwan's top patent holders. The report analyzed 8,449 published and announced patent families from 2015 through 2024 and found cooling-related patent families grew at a 17% compound annual growth rate over the past decade, and entered a distinct growth phase in 2022 when annual filings first exceeded 1,000.

Swancor taps aerospace, AI robots to lift revenue

Kevin Wang — Thu, 14 May 2026 04:56:40 GMT

Swancor Holding is continuing its push into high-value materials, with aerospace composites and AI robot-related businesses now accounting for 14% and 4% of revenue, respectively. Alongside these contributions, the company is targeting the AI server supply chain with its M8 copper-clad laminate (CCL) materials, which have already entered the customer testing phase, though shipment volumes currently remain low.

Samsung reportedly speeds up 3D NAND, packaging, and substrate plans

Charlene Chen — Thu, 14 May 2026 04:53:59 GMT

Samsung Electronics is reportedly reviving delayed semiconductor initiatives across next-generation NAND flash, compound semiconductors, advanced packaging, and substrates — areas it set aside after more than a year of prioritizing DRAM design and high-bandwidth memory (HBM) competitiveness. The move signals a shift from catch-up mode back toward longer-term technology investment.

Xi tells Trump's CEO delegation US firms will find 'broader prospects' in China

DIGITIMES — Thu, 14 May 2026 04:48:42 GMT

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Pegatron 1Q26 earnings fall more than 60% amid off-season, eyes stronger 2Q26 on AI PC demand

Eifeh Strom — Thu, 14 May 2026 04:43:09 GMT

Pegatron announced its first-quarter 2026 financial results on May 13, with profit down more than 60% compared with the same period a year earlier, while earnings per share (EPS) hit its lowest level for the same period in nearly seven years.

Analysis: Android AI upgrade underscores China's self-contained smartphone AI ecosystem and limited spillover impact

Jingyue Hsiao — Thu, 14 May 2026 04:43:02 GMT

Google announced Gemini Intelligence in the US on May 13, further integrating Gemini's AI capabilities into Android. The move pushes Android from a traditional operating system toward a "smart system," but in China, local AI ecosystems leave little room for Gemini Intelligence to gain traction.

Appier posts record 1Q26 revenue and profit, lifts 2Q26 outlook

DIGITIMES — Thu, 14 May 2026 04:39:06 GMT

Appier, an AI-native Agentic AI-as-a-Service company, reported on May 13 that first-quarter 2026 revenue and profit reached record highs and that it expects second-quarter 2026 results to exceed prior guidance as scaled Agentic AI deployments expand operating leverage. The firm said the strong start to the year was driven by go-to-market execution across key verticals and broader adoption of Agentic AI, which it said laid a firmer foundation for profitability.

Google pivots to Gemini Intelligence, linking AI with premium hardware

Jingyue Hsiao — Thu, 14 May 2026 04:27:07 GMT

Google's The Android Show 2026 reframed its Android and AI strategy around Gemini Intelligence, signaling a shift toward premium hardware as the primary battleground for AI. The move integrates Gemini across devices and partners, aligning Google with an Apple-like model that places the hardware layer at the center of AI rollout.

Analysis: Samsung labor standoff underscores diverging Taiwan-Korea semiconductor workforce models

Jingyue Hsiao — Thu, 14 May 2026 04:16:43 GMT

The ongoing Samsung Electronics labor dispute highlights sharply different labor models in South Korea and Taiwan, where firms such as TSMC operate with minimal union presence and rely instead on compensation-driven workforce stability. Industry observers say the Samsung conflict reflects broader tensions over profit sharing during the AI-driven semiconductor upcycle, while Taiwan's tech sector continues to favor high mobility and individual incentives over collective bargaining.

Asus's record revenue signals greater exposure to AI server demand and higher component costs

Jingyue Hsiao — Thu, 14 May 2026 04:06:45 GMT

Asus Computer Inc. reported first-quarter 2026 brand revenue of NT$194.051 billion (US$6.19 billion), a record high and a 44% increase year on year, driven by surging AI server demand and stable notebook shipments. The company's co-CEOs, S.Y. Hsu and Samson Hu, raised the full-year server revenue growth target to "at least double," up from a prior 50% to 100% range.

ASMedia reports record profit as it expands beyond PC chips into AI and automotive

Elaine Chen — Thu, 14 May 2026 04:06:36 GMT

Despite weakness in the personal computer market, surging DDR5 memory prices, and tight CPU supply, ASMedia Technology posted record results in the first quarter of 2026, underscoring early gains from its shift beyond PC connectivity chips into custom silicon, artificial intelligence infrastructure, and automotive electronics.

Etron sees DRAM rally stretching into 2027 as shortages persist

Sherri Wang — Thu, 14 May 2026 04:06:06 GMT

The memory market is entering a new growth cycle as artificial intelligence demand reshapes supply and pricing, with DRAM prices still rising 10% to 20% a month, according to Nicky Lu, chairman of Etron Technology.

Etron's robotics bets gain ground as memory cycle turns

Sherri Wang — Thu, 14 May 2026 04:05:58 GMT

Etron Technology is seeing momentum extend beyond its core memory business, as subsidiaries built over the past several years begin to bear fruit in robotics, edge computing, and privacy-focused applications.

Wieson eyes 2Q26 recovery as new businesses gain traction

DIGITIMES — Thu, 14 May 2026 04:02:34 GMT

Wieson Technology said on May 12 that its first quarter 2026 results lagged expectations as soaring global memory costs and chip shortages delayed customer shipments, and intensifying competition plus inventory digestion in China's auto market weighed on performance. The electronics components maker reported consolidated revenue of NT$704 million (US$22.33 million) in the first quarter of 2026, down 24.95% year-on-year, with gross margin at 21% versus 27% a year earlier, operating margin at around 2%, and earnings per share of NT$0.13, down from NT$0.86 in the same period of 2025.

Sony launches Xperia 1 VIII in bid to reclaim ground in premium smartphone market

DIGITIMES — Thu, 14 May 2026 04:02:06 GMT

Sony announced on May 13 that it will launch the Xperia 1 VIII flagship phone as it seeks to reclaim market share amid intensifying competition in the premium smartphone segment. The company said the device debuts a new AI photography assistant powered by Xperia Intelligence and a redesigned telephoto image sensor aimed at improving detail and high-resolution performance for distant subjects.

SoftBank looks beyond mobile with data center, battery push

DIGITIMES — Thu, 14 May 2026 04:01:40 GMT

SoftBank is committing JPY1 trillion (US$6.34 billion) through fiscal 2030 to make artificial intelligence, data centers, and energy infrastructure its next growth engines, according to company materials as well as Bloomberg and Nikkei reports.

Khgears deepens robot supply chain role as smart transmission tops 10% of revenue

DIGITIMES — Thu, 14 May 2026 04:01:12 GMT

Khgears International said it has expanded its robot-related supply chain presence, with smart transmission products accounting for more than 10% of revenue in the first quarter of 2026. The company reported consolidated revenue of NT$784 million (US$24.87 million) and net profit after tax of NT$125 million for the period. Executives disclosed that humanoid robots have yet to generate revenue. Still, three development projects are currently underway for customers in Taiwan, China, and the US, with sample testing and prototype deliveries planned throughout 2026.

Nan Pao profit stays strong in 1Q26, expands into semiconductor specialty materials

Eifeh Strom — Thu, 14 May 2026 03:53:17 GMT

Nan Pao Resins Chemical reported net profit attributable to the parent company of NT$790 million (approx. US$25.08 million) for the first quarter of 2026, up 8.4% year over year, with earnings per share (EPS) of NT$6.55, up 8.3% from the first quarter of 2025. Supported by revenue growth, continued optimization of its product mix, and improved operating efficiency, the company's operating margin reached 17.6%, up 1.2% from the first quarter of 2025 and 1.4% from the fourth quarter of 2024.

Memory prices disrupt NB seasonality, hit 2H26 shipments and margins

Jingyue Hsiao — Thu, 14 May 2026 03:50:50 GMT

Rising memory prices are reshaping the global PC market: stronger first-half notebook shipments are propping up revenue, but surging component costs threaten gross margins and are prompting cautious second-half planning by ODMs and brands, which are increasingly pivoting toward AI servers for relatively better profitability despite similar inflationary pressures and uncertainty.

Exclusive: US energy storage market rushes to buy domestic made batteries as restrictions on China tightens

Jingyue Hsiao — Thu, 14 May 2026 03:24:21 GMT

US policy tilts the market, driving buyers to US-made lithium batteries despite higher costs, with global supply chains and investment flows likely to shift as subsidies, tariffs, and tight reviews reshape where and how energy storage systems are sourced and built over the coming years, and policy uncertainty.

Samsung and SK Hynix rush to expand capacity as AI memory demand soars

Elaine Chen — Thu, 14 May 2026 03:08:58 GMT

The artificial intelligence(AI) boom is triggering an unprecedented expansion race among the world's largest memory chipmakers.

Cisco accelerates AI push with Silicon One gains and major restructuring plan

DIGITIMES — Thu, 14 May 2026 02:44:50 GMT

Cisco Systems reported record fiscal third-quarter results for fiscal 2026, surpassing its own financial guidance, driven by triple-digit order growth from hyperscale cloud providers. The company significantly raised its full-year outlook for AI-related infrastructure orders. It announced a major restructuring plan to reallocate human and financial resources toward high-growth technologies, including proprietary silicon and optics.

Alibaba faces mounting margin pressure as AI investments accelerate

DIGITIMES — Thu, 14 May 2026 02:32:22 GMT

Analysts gave Alibaba Group Holding's latest results a cautious reception, warning that surging artificial intelligence (AI) investments are pressuring profitability even as cloud growth accelerates. While investors welcomed strong AI-related momentum and rising cloud revenue, several research firms said heavy infrastructure spending and weaker-than-expected earnings underscored the mounting costs of Alibaba's ambitious AI expansion.

Tencent eyes Chinese ASIC ramp in 2H26

DIGITIMES — Thu, 14 May 2026 02:12:55 GMT

Tencent Holdings Limited reported a 9% year-over-year increase in total revenue to CNY196 billion (approx. US$28.86 billion) for the first quarter of 2026, driven by a strategic pivot toward artificial intelligence (AI) and stabilized growth in its core gaming and advertising segments. Company executives highlighted the quarter as a turning point, noting "significant initial progress on our new AI products" while continuing to integrate machine learning across existing business lines.

US court cleared Apple to seek documents from Samsung's Korea HQ in DOJ antitrust case

DIGITIMES — Thu, 14 May 2026 02:00:27 GMT

A US federal court in New Jersey granted Apple the right to pursue internal records from Samsung Electronics' South Korea headquarters as part of Apple's response to the Department of Justice antitrust lawsuit, according to South Korean outlets Ddaily and Digital Today. The court approved Apple's Hague Evidence Convention request in April 2026, determining there was good cause and rejecting the DOJ's contention that Apple had begun discovery nine months late.

Analysis: How OpenAI is playing the Cerebras card to reshape its AI supply chain

Jingyue Hsiao — Thu, 14 May 2026 01:53:07 GMT

OpenAI's deep partnership with chipmaker Cerebras has taken a public turn as Cerebras prepares to list in the US, a development that underscores OpenAI's effort to restructure its compute supply chain without abandoning existing suppliers. The listing arrives amid OpenAI's ongoing legal dispute with Elon Musk.

MediaTek courts Intel as Google pushes for alternatives to CoWoS

Elaine Chen — Thu, 14 May 2026 01:41:59 GMT

MediaTek's decision to pursue advanced packaging partnerships with both TSMC's CoWoS ecosystem and Intel's EMIB platform has become one of the semiconductor industry's most closely watched strategic moves.

Lam Research to hire 1,000-plus engineers in Taiwan on AI chip demand

DIGITIMES — Thu, 14 May 2026 01:33:21 GMT

Lam Research said it will hire more than 1,000 professional engineers in Taiwan in 2026 as customer demand mounts and the company expands technical support services for foundry, memory and assembly and test customers.

Foxconn briefing to clarify AI server orders, CPO commercialization, and EV alliances, investors say

Jingyue Hsiao — Thu, 14 May 2026 01:29:11 GMT

Foxconn will hold its first-quarter 2026 earnings briefing on May 14, with investors expecting detailed updates on AI server demand, the commercialization of co-packaged optics, and the strategic significance of recent alliances with Mitsubishi Electric and ElectroMobility Poland. The company's record first-quarter revenue has heightened expectations for a dense briefing.

Foxconn Wisconsin ransomware attack spotlights cybersecurity gap at Taiwan manufacturers

DIGITIMES — Thu, 14 May 2026 01:03:47 GMT

Foxconn confirmed a ransomware intrusion at its Wisconsin plant in the US, and said the affected facility continued operating normally after the incident. The attack renewed scrutiny of cybersecurity practices across Taiwan's tech manufacturing sector, where executives said rapid advances in AI servers, semiconductors, and space systems have heightened the strategic importance of Taiwan's role as a supply chain hub.

HDRE to deploy containerized AI compute at Australian and Japanese storage sites

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

HDRE announced it will enter the AI compute dispatch market by building containerized compute centers paired with energy storage systems in Australia and Japan, aiming to finalize cooperation projects in the first half of 2026. The firm said it will colocate GPUs with existing storage battery sites to boost the value of power output and address permitting rules that require sufficient electricity infrastructure for new data center developments.

Taiwan plans green power spot market to ease surplus renewable power by 2027

DIGITIMES — Thu, 14 May 2026 00:58:31 GMT

Taiwan intends to launch a green power spot market as early as late 2026 or early 2027 to allocate intermittent renewable generation better and reduce surplus electricity pressures on semiconductor and other energy-intensive industries, market sources said. The move aims to address mismatches between peak renewable output and corporate electricity demand that have left some power retailers holding surplus power.

Sharp delays Kameyama LCD shutdown as losses mount

DIGITIMES — Wed, 13 May 2026 23:47:53 GMT

Sharp is delaying the shutdown of its Kameyama No. 2 LCD plant to December from August, as customer demand has held up stronger than expected ahead of the planned production halt.

NSK-NTN merger to create the world's largest bearing maker

DIGITIMES — Wed, 13 May 2026 23:46:44 GMT

Japan's NSK and NTN have agreed to pursue a merger that would create the world's largest bearing maker, as rising costs, slowing demand, and Chinese competition push Japan's industrial suppliers toward consolidation.

Tesla ramps up AI, Robotaxi, and chip investments in new growth phase

Elaine Chen — Wed, 13 May 2026 23:46:07 GMT

Tesla has entered what analysts describe as a "high-investment cycle" in 2026, marking a pivotal shift in the company's strategic priorities from pure electric-vehicle expansion toward artificial intelligence, robotics, and semiconductor self-sufficiency.

Column: Why robots aren't ready for the real world — yet

Elaine Chen — Wed, 13 May 2026 23:45:43 GMT

Over the past 15 years, several major technological paradigms have crossed the commercial threshold from "zero to one" and into mass adoption.

Oppo Taiwan forecasts 5% to 8% shipment decline while revenue is set to rise

DIGITIMES — Wed, 13 May 2026 23:45:23 GMT

Oppo Taiwan said on the 12th that annual smartphone shipments were likely to fall 5% to 8% this year as surging memory prices pushed up handset costs and extended replacement cycles from 38 months to 42 months. Still, the company expected higher sales value from stronger demand for mid-to-high-end models. The firm launched its new Find X9 series in Taiwan on the 12th alongside wearable products, including earphones and watches, as it sought to use product upgrades and a broader lineup to lift local performance.

China's semiconductor godfather warns against 2nm fixation

DIGITIMES — Wed, 13 May 2026 23:45:01 GMT

While the global semiconductor industry remains fixated on 3nm, 2nm, and the AI GPU arms race, SMIC founder and "China's semiconductor godfather" Zhang Rujing is pushing a sharply different message: the future of China's chip industry may depend less on chasing the world's most advanced nodes and more on dominating the vast market still built on mature processes.

Korea races to narrow chip packaging gap with Taiwan and China

DIGITIMES — Wed, 13 May 2026 23:44:28 GMT

AI server demand is pushing semiconductor packaging into a new growth cycle, but the market remains heavily concentrated among a small group of global outsourced semiconductor assembly and test leaders and Taiwanese and Chinese companies, sharpening the challenge for South Korea's back-end chip industry.

Arbe CEO Says radar is becoming central to future of autonomous driving

DIGITIMES — Wed, 13 May 2026 23:43:52 GMT

As the autonomous driving industry pushes toward "eyes-off" highway driving, the race is increasingly shifting from electric vehicles to perception systems capable of operating safely in the real world.

AP Memory profit nearly doubles as S-SiCap shipments and IoTRAM ramp drive revenue

DIGITIMES — Wed, 13 May 2026 23:43:31 GMT

AP Memory reported that net profit for the first quarter of 2026 rose 91% to NT$660 million (US$20.93 million) as the company scaled mass production of its S-SiCap silicon capacitor and benefited from strong demand for its IoTRAM customized memory. The Taiwan-based chip packaging and memory supplier said silicon capacitor shipments entered a ramp-up phase in the first quarter of 2026 as AI and high-performance computing accelerators drove up power demands, placing greater emphasis on advanced packaging, power delivery, and signal integrity.

Microloops posts record first-quarter profit as AI server cooling drives growth

DIGITIMES — Wed, 13 May 2026 23:43:03 GMT

Microloops reported record revenue and profit for the first quarter of 2026, driven by sustained demand for AI server cooling products that accounted for 60% of sales, the company announced. The thermal module maker said the strong AI-related mix lifted scale and profitability even as revenue slowed at the start of the second quarter.

GlobalWafers gains SBTi approval for 1.5°C-aligned emissions cuts and net-zero plan

DIGITIMES — Wed, 13 May 2026 23:42:34 GMT

GlobalWafers announced that its greenhouse gas reduction targets passed review by the Science Based Targets initiative, signaling the wafer maker has aligned its decarbonization pathway with the global 1.5°C climate goal and committed to achieving net-zero emissions across its full value chain by 2050. The approval covers both near-term and long-term targets, and the company said the moves will shape its operational and supplier strategies through the 2030s and beyond.

PixArt targets 2Q26 growth as gaming mouse and console demand offset weak PC sales

Lily Hess — Wed, 13 May 2026 09:14:41 GMT

IC design firm PixArt Imaging said on May 12 that its three core business areas will post strong growth in the second quarter of 2026, with revenue expected to rise by the double digits quarter over quarter. The company said better-than-expected game console shipments lifted first-quarter 2026 results above its earlier forecast, helping offset a weak PC market.