DIGITIMES: News and Insight of the Global Supply Chain

OpenAI's 5% stake pitch pulls AI deeper into Washington

DIGITIMES — Thu, 2 Jul 2026 08:15:59 GMT

OpenAI has discussed giving the US government a 5% stake in the company, according to the Financial Times, as the AI developer seeks to ease political pressure over model risks and whether Americans should share in the industry's profits. Reuters said it could not independently verify the report.

AUO pushes AI-era transformation with executive reshuffle, launch of innovation institute

Eifeh Strom — Thu, 2 Jul 2026 07:33:42 GMT

Taiwanese optoelectronics specialist AUO announced organizational adjustments and senior executive appointments on July 1 as it continues to advance its business transformation. The company is aiming for balanced development across its businesses and accelerating its transition into a key solutions provider centered on display technologies for its long-term growth momentum. The company also unveiled its new Institute of Innovation and New Venture.

Supermicro: We are cooperating with Taiwan, not under investigation

DIGITIMES — Thu, 2 Jul 2026 07:21:32 GMT

Supermicro has pushed back against media characterizations of this week's events in Taiwan, saying the company is a cooperating party in the investigation rather than a target, and that misconduct, if any, lies with individual employees who have been suspended pending the outcome of the case.

Singapore files additional fraud and money laundering charges in Nvidia-linked server case

DIGITIMES — Thu, 2 Jul 2026 07:12:22 GMT

Singapore authorities have filed additional fraud and money laundering charges against four individuals and brought fresh charges against four companies, as part of an investigation linked to the movement of servers that may have contained Nvidia artificial intelligence chips subject to US export controls. The case has been reported by multiple outlets, including CNA, The Straits Times, and Reuters.

Nvidia and nuclear energy startup Valar test microreactor to power AI data center

DIGITIMES — Thu, 2 Jul 2026 07:09:12 GMT

Nuclear energy startup Valar Atomics said on July 1 it is partnering with Nvidia to develop a small data center in Utah, an effort the companies say will demonstrate how computing facilities needed for artificial intelligence can conserve water.

Commentary: G2 rivalry simmers– China quietly watches as US pressure sends Asia's defense industry into overdrive

Kevin Wang — Thu, 2 Jul 2026 07:05:08 GMT

The annual Shangri-La Dialogue, considered the most important defense and security conference in the Asia-Pacific region, was held this year in Singapore at the end of May. For this year's conference, however, China kept a low profile by sending a deputy president from its National Defense University, a move seen as its attempt to minimize the significance of the conference.

Passive component suppliers regain momentum on AI server and auto demand

Levi Li — Thu, 2 Jul 2026 07:00:00 GMT

Taiwan's passive component suppliers are entering the second half of 2026 with stronger order momentum, as demand from AI data centers, networking equipment, power systems, and automotive electronics helps offset earlier pressure from volatile metal prices and weaker consumer electronics planning.

Analysis: How long can memory's AI-driven boom last?

DIGITIMES — Thu, 2 Jul 2026 06:56:25 GMT

The global memory market is enjoying one of its most profitable cycles in years. AI data center demand has driven DRAM and NAND prices sharply higher, and the three companies that dominate global supply — Micron, Samsung, and SK Hynix — are posting results that would have seemed unlikely two years ago.

DDI makers look to smaller displays as NB and TV demand loses momentum in 2H26

Scarlett Yu — Thu, 2 Jul 2026 06:30:00 GMT

Large-size display driver ICs (DDIs) were a key revenue driver for many DDI suppliers during the first half of 2026. Taiwanese manufacturers said early notebook inventory build-up beginning in the first quarter of 2026, together with television restocking ahead of the 2026 FIFA World Cup in the United States, Canada, and Mexico, allowed large-size DDI shipments to outperform the traditional seasonal slowdown.

China ICT vendor H3C enters new AI server chapter after Unisplendour leadership reset

DIGITIMES — Thu, 2 Jul 2026 06:22:44 GMT

Unisplendour has reset its leadership as H3C, its core ICT subsidiary, enters a tougher phase in China's AI infrastructure buildout. Demand for servers, cloud systems, and computing networks is rising, but US chip controls continue to restrict China's high-end AI server supply chain.

Micron and GM strike long-term memory supply deal for vehicles

DIGITIMES — Thu, 2 Jul 2026 05:59:47 GMT

Micron Technology and General Motors (GM) have signed a strategic customer agreement to secure a long-term supply of memory and storage products for vehicle production. The deal underscores how automakers and suppliers are trying to stabilize global semiconductor access as cars become more software-driven, connected, and reliant on advanced electronics worldwide.

Android brands continue lowering lower-end smartphone shipment forecasts as pressure mounts on chip suppliers

Scarlett Yu — Thu, 2 Jul 2026 05:51:18 GMT

The smartphone market's traditional peak season in the second half of 2026 remains under close watch. However, Android smartphone vendors—particularly Chinese brands—have reportedly begun another round of shipment forecast cuts, reducing projections by 10-30%. Procurement is expected to become increasingly conservative for mid-range and entry-level models, leaving inventory build-up for the peak season largely concentrated on flagship and premium devices.

India's smartwatch leader enters smartphone market despite surging memory cost

DIGITIMES — Thu, 2 Jul 2026 04:36:04 GMT

Fire-Boltt is expanding beyond wearables into smartphones, a move that could shape India's budget-device market and add another local contender to a segment dominated by Chinese brands. The launch may matter globally as rising component costs, local manufacturing, and ecosystem-building become central themes across emerging markets.

AI server probe pulls back the curtain on the evolving journey of Taiwan's motherboard industry

Scarlett Yu — Thu, 2 Jul 2026 04:22:43 GMT

An ongoing investigation into alleged AI server smuggling has once again put Taiwan's motherboard industry under the spotlight. Veteran motherboard maker Albatron Technology has become a focal point after its general manager, Alex Lu, and an employee of Super Micro Computer (Supermicro) were detained without visitation rights as part of the investigation.

Taiwan's Eurocharm eyes peak 2026 on North American powersports cycle, Vietnam EV shift, and server rack entry

Willis Ke — Thu, 2 Jul 2026 04:07:01 GMT

Taiwan's major precision parts maker Eurocharm Holdings is forecasting a record-breaking 2026, driven by robust North American SUV-related demand, a structural shift toward electric scooters in Vietnam, and early traction in a new server rack business expected to become a key growth driver from 2027. The company expects full-year revenue to approach NT$9 billion (approx. US$281.9 million) as its diversified order base strengthens across automotive, powersports, and electronics segments.

Samsung courts AI chipmakers with 2nm roadmap amid firming foundry demand

DIGITIMES — Thu, 2 Jul 2026 04:00:49 GMT

Samsung Electronics used its annual foundry ecosystem event on July 1 to signal that its contract chipmaking business is regaining momentum, laying out a longer-term manufacturing roadmap alongside signs of firmer near-term demand.

LG Electronics moves into ASIC design services as TSMC ties draw attention

DIGITIMES — Thu, 2 Jul 2026 03:52:05 GMT

LG Electronics has begun offering application-specific integrated circuit (ASIC) design services to outside chip companies, drawing on system-on-chip (SoC) development work the company has done for its own products since the early 2000s, according to industry sources cited by ZDNet Korea. LG declined to confirm the report when contacted.

China power chip makers raise prices, exposing AI server squeeze on mature-node supply

DIGITIMES — Thu, 2 Jul 2026 03:37:45 GMT

China's power semiconductor makers are entering a broader price-hike cycle, as AI server demand, raw material inflation, and tight mature-node capacity force suppliers to defend margins after years of low-end price wars.

Infineon closes ams OSRAM sensor acquisition, adds EUR230 million in annual revenue

DIGITIMES — Thu, 2 Jul 2026 03:30:48 GMT

Infineon Technologies completed its acquisition of the non-optical analog and mixed-signal sensor portfolio from ams OSRAM on Tuesday, expanding its position in automotive and industrial sensing and adding roughly 230 employees across three new locations.

Taiwan automotive LED maker EOI readies Mexico ramp for humanoid robots and silicon photonics

Levi Li — Thu, 2 Jul 2026 03:27:05 GMT

Excellence Optoelectronics Inc. (EOI) expects double-digit growth in 2026 from a strong 2025 base, supported by robust automotive lighting module shipments to North American automakers, new Mexico capacity, and a planned expansion into AI humanoid robot supply chains.

Memory price relief for PC brands is expected to be temporary

Jingyue Hsiao — Thu, 2 Jul 2026 03:24:23 GMT

Memory suppliers are renegotiating high-bandwidth memory contracts, and PC brands say price increases may slow later this year. For global buyers, that relief could be short-lived, as supply-chain sources warn that shortages tied to artificial intelligence demand are likely to keep memory markets tight through 2027.

Socionext to develop TSMC A14 chiplet for AI data center SoCs

DIGITIMES — Thu, 2 Jul 2026 03:24:00 GMT

Socionext announced that it would develop a high-performance compute chiplet using TSMC's A14 process technology, positioning the project as a platform for next-generation custom silicon aimed at AI data center infrastructure.

BOE, Chinese panel makers' chip push tightens the squeeze on South Korea

Lily Hess — Thu, 2 Jul 2026 03:14:46 GMT

China's display makers, led by BOE Technology (BOE), are pushing deeper into semiconductors, with BOE advancing glass substrates, and a 12-inch wafer fab reportedly slated to begin mass production in the second half of 2026. Industry analysts say China is extending display technologies built up with strong government backing into semiconductors as the US tightens restrictions, adding pressure on South Korea's chip and panel industries.

South Korea plans CIA-style fund to build its own Palantir

DIGITIMES — Thu, 2 Jul 2026 03:03:11 GMT

South Korea plans to set up a government-backed venture fund modeled on the CIA's In-Q-Tel, betting that direct state investment can help produce homegrown security-technology companies in fields such as AI, drones, cyber defense and aerospace.

Apple PCB suppliers press ahead with iPhone 18 buildup despite memory price shock

Levi Li — Thu, 2 Jul 2026 02:55:14 GMT

Despite rising concerns over memory price hikes, Apple's PCB supply chain has seen little change to the company's 2026 order pull-in schedule as of the second quarter, according to people familiar with the PCB industry.

Qualcomm's Dragonfly raises the stakes, but MediaTek's TPU and ASIC ties keep it in the race

Jingyue Hsiao — Thu, 2 Jul 2026 02:53:15 GMT

Qualcomm recently launched its Dragonfly platform, signaling a deeper push into cloud artificial intelligence and intensifying competition with MediaTek. For global readers, the move highlights how chip suppliers are jockeying to win long-term contracts from major cloud providers, where design wins can shape revenue, supply chains, and future AI infrastructure.

Techman Robot upgrades automotive production lines at Quanta Computer Germany plant with AI cobots

Eifeh Strom — Thu, 2 Jul 2026 02:45:59 GMT

Techman Robot announced its artificial intelligence (AI) collaborative robots (cobots) have been successfully deployed at parent company Quanta Computer's automotive computer and automotive electronics manufacturing facility in Germany.

USMCA review and post-Brexit rules cloud auto supply chain

Jingyue Hsiao — Thu, 2 Jul 2026 02:43:25 GMT

The global auto industry is facing a sharper supply chain shock from trade policy, as the US, Canada, and Mexico begin a mandatory review of the USMCA, and post-Brexit sourcing rules tighten in Europe. Automakers are being forced to weigh higher costs, shifting tariffs, and growing uncertainty across two major markets.

Apple's reported pursuit of Chinese memory chips revives supply chain and geopolitical tensions

DIGITIMES — Thu, 2 Jul 2026 02:34:32 GMT

Apple is once again exploring Chinese memory suppliers as a prolonged shortage driven by artificial intelligence (AI) demand reshapes the semiconductor supply chain, according to a Bloomberg report.

SoftBank leads Japan's sovereign AI push, with Foxconn eyeing the compute backbone

Jingyue Hsiao — Thu, 2 Jul 2026 02:33:25 GMT

Japan's sovereign AI push is moving from policy ambition to industrial buildout, with SoftBank-backed Noetra at the center, and Foxconn emerging as a likely infrastructure partner. Backed by substantial public funding, the program signals Tokyo's intent to treat compute capacity, data centers, and domestic control over AI systems as strategic priorities.

Fujifilm India signs MoU to assess semiconductor materials manufacturing in Gujarat

DIGITIMES — Thu, 2 Jul 2026 02:09:22 GMT

Fujifilm India said it has signed a memorandum of understanding with the Gujarat State Electronics Mission, under the Department of Science and Technology of the Government of Gujarat, to explore opportunities for manufacturing semiconductor materials in India and strengthening domestic supply chain capabilities.

Meta's alleged turn from AI buyer to seller raises new questions about AI spending, returns, and competition

DIGITIMES — Thu, 2 Jul 2026 02:01:14 GMT

Meta Platforms' reported interest in selling excess AI computing capacity has stirred debate over whether the company is seeking a new way to monetize heavy infrastructure spending or signaling a larger shift in competition across cloud computing and AI services. The Bloomberg report pressured several AI infrastructure stocks and raised fresh questions about supply, demand, and valuation.

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.