DIGITIMES Asia: News and Insight of the Global Supply Chain

Thunder Tiger and Shield AI team up on autonomous naval drones for Taiwan's asymmetric defense

Elaine Chen — Sat, 16 May 2026 22:37:59 GMT

Thunder Tiger Group, a Taiwanese defense and unmanned systems manufacturer, said it has signed a memorandum of understanding with US defense technology company Shield AI to integrate the American firm's Hivemind autonomous software into Thunder Tiger's unmanned platforms, beginning with its Sea Shark unmanned surface vessel.

Silicon-carbon batteries become latest front in US-China tech rivalry

DIGITIMES — Sat, 16 May 2026 22:37:49 GMT

As American battery startups continue working to commercialize next-generation silicon-carbon batteries, Chinese manufacturers are already deploying the technology at scale and now pushing it into aviation-grade territory.

AI drives Cisco orders, lifts Taiwan networking suppliers

Jerry Chen — Sat, 16 May 2026 22:37:34 GMT

Cisco's latest earnings report has injected fresh momentum into the networking industry, with CEO Chuck Robbins highlighting strong order momentum in AI infrastructure, which helped drive product orders up 35% year-over-year in the third quarter of fiscal 2026. AI infrastructure orders from hyperscalers reached US$1.9 billion during that quarter, and US$5.3 billion for the year to date, beating the company's original US$5 billion target. Looking ahead, Robbins also struck an upbeat tone, saying hyperscaler AI infrastructure orders in fiscal 2026 are expected to reach US$9 billion, or roughly 450% of 2025 levels.

Taiwan chipmakers quietly fill gaps left by Korea's HBM push

DIGITIMES — Sat, 16 May 2026 22:37:22 GMT

Taiwan's semiconductor ecosystem is getting an unexpected lift from the AI server investment boom. Supply pressure that began in high-bandwidth memory and leading-edge process technology is now rippling into legacy memory, packaging, and testing.

Optical firms enter high-margin smart snow goggles supply chain

Rodney Chan — Sat, 16 May 2026 22:37:08 GMT

Taiwan's optical supply chain is moving into smart snow goggles as companies race to combine augmented reality (AR) displays with large-curvature protective lenses. To overcome the limitations of conventional flat-panel displays, vendors are turning to free-form prism and optical compensation film technologies.

Adlink bets on physical AI with robotics, healthcare, and semiconductors

Jingyue Hsiao — Sat, 16 May 2026 22:36:57 GMT

Adlink Technology said on May 13 that edge AI demand continued to rise, helping the industrial PC maker deliver one of its strongest profit performances in recent quarters in the first quarter of 2026. The company struck a cautiously optimistic tone for the second half and said long-term growth will center on expanding AI deployment across more real-world use cases.

Advantech charts five-year edge AI roadmap alongside CEO-to-chair transition plan

Jingyue Hsiao — Sat, 16 May 2026 22:36:47 GMT

Advantech is deepening the integration of hardware and software for edge AI and is moving to unify its global partner conference with exhibition activities at COMPUTEX Taipei 2026. The company said the reorganization and new strategic priorities are designed to accelerate the industrial deployment of physical AI.

Galatek targets advanced packaging market, eyes Taiwan foundries

Lily Hess — Sat, 16 May 2026 22:36:32 GMT

Singapore-based AI automation startup Galatek said it is tackling yield bottlenecks in micron-level packaging with AI-embedded equipment as demand for AI and high-performance computing (HPC) chips surges across Southeast Asia and global markets. The company is also pursuing a dual-track expansion spanning Southeast Asia and Taiwan.

China's memory push accelerates as YMTC and CXMT expand DRAM ambitions

DIGITIMES — Sat, 16 May 2026 01:15:41 GMT

China's memory semiconductor industry is entering a new phase of expansion as leading domestic players ramp up investments in both NAND flash and DRAM technologies, amid an AI-driven global memory boom and tightening supply conditions.

AI server tracker: Rising server demand leads to high revenue growth for rail kit makers

DIGITIMES — Sat, 16 May 2026 01:15:32 GMT

Growing demand for AI is driving appetite for server components across cable connectors, cases, and rail kits. This wave has led most major Taiwanese players in the industry to record rising annual revenues, with some exceptions. Rail kit makers in particular have posted strong annual growth as AI servers claim a larger share of their business.

Taiwan semiconductor materials, April 2026— One sector, two races

DIGITIMES — Sat, 16 May 2026 01:15:19 GMT

Among the 19 Taiwan-listed semiconductor materials companies tracked by Digitimes, 10 (53%) grew month-on-month in April, 12 (63%) posted positive year-on-year growth, and 14 (74%) are ahead on a cumulative January–April basis. On the surface, those are reasonable numbers — but the distribution underneath tells a more complicated story.

Column: Orbit are now battlefields—how the world's powers are militarizing space

Elaine Chen — Sat, 16 May 2026 01:15:09 GMT

In April 2024, the People's Liberation Army (PLA) executed one of the most significant overhauls of its military architecture in decades. The former Strategic Support Force was disbanded and reorganized into three distinct branches: the Military Aerospace Force, the Cyberspace Force, and the Information Support Force. Together with the existing Joint Logistics Support Force, these constitute a new four-branch support structure — one designed not merely to support terrestrial warfare, but to dominate the space domain itself.

One-person companies may upend small businesses in AI shift, adviser says

DIGITIMES — Sat, 16 May 2026 01:14:55 GMT

Lee-Feng Chien, innovation economy adviser to the Executive Yuan's Economic Development Commission, said at an AI forum on May 14 that artificial intelligence is bringing revolutionary changes to the global economy, from drug development to architectural design.

Commentary: The Thucydides trap and TSMC's COUPE

DIGITIMES — Fri, 15 May 2026 12:07:09 GMT

On May 14, Xi Jinping opened his summit with Donald Trump in Beijing by invoking the Thucydides Trap — the idea that a rising power and an established hegemon are structurally destined for conflict. Then he turned to Taiwan. If not handled properly, he warned, the two countries face clashes and even conflicts.

Global server market and shipments, 2026: Agentic AI drives global server shipments near 20 million mark in 2026

DIGITIMES — Fri, 15 May 2026 10:03:47 GMT

CPU computing power plays a key role in AI, with Global server shipments in 2026 expected to see a significant yearly growth of 19.2%.

China keeps tight InP export controls despite Trump-Xi talks

Lily Hess — Fri, 15 May 2026 09:51:32 GMT

As the US and China continue to clash over geopolitics and critical materials supply, industry sources say China's restrictions on indium phosphide (InP) substrates for optical communications remain unchanged and are widely seen as part of Beijing's effort to counter US-led AI development.

TTI targets global ADC market with upstream next-gen linker and payload platforms

Willis Ke — Fri, 15 May 2026 09:05:38 GMT

Taiwan-based Tripartite Therapeutics, Inc. (TTI) is positioning itself at the forefront of the global antibody-drug conjugate (ADC) race with a proprietary technology platform aimed at overcoming long-standing barriers in targeted cancer therapies. Ahead of its listing on the Taipei Exchange's Emerging Stock Board on May 20, the company says its integrated linker and payload technologies could help international drugmakers develop safer, more effective, and commercially scalable ADC treatments.

Fiber shortage deepens as orders for Chinese vendors extend to 2027

Lily Hess — Fri, 15 May 2026 08:51:52 GMT

The global optical fiber market is shifting from a traditional telecom cycle into a new phase of structural shortage, driven by rapid AI infrastructure expansion and dense cloud data center construction. Prices and capacity are rising together as demand for fiber, a core material for data transmission, keeps climbing.

TSMC's Vanguard stake sale signals AI-era capital pivot

Joseph(C) Chen — Fri, 15 May 2026 08:51:39 GMT

TSMC's decision to sell down its stake in Vanguard International Semiconductor (VIS) is the second significant portfolio move the company has made in as many weeks — and together, the two transactions sketch the outline of a deliberate capital reallocation strategy centered on AI.

Everlight to build automotive LED plant in Thailand as raw material costs hit profit

Rodney Chan — Fri, 15 May 2026 08:44:48 GMT

Everlight Electronics said it will invest an additional US$56.5 million in its Thai subsidiary to buy land, build a plant, and add equipment, as the LED packaging firm moves to strengthen its presence in the automotive supply chain. The company also reported that first-quarter 2026 profit fell to NT$403 million (US$12.83 million), down 30.99% year on year, as higher raw material costs weighed on margins.

AI servers squeeze ODM margins as consignment gains traction

Lily Hess — Fri, 15 May 2026 08:02:44 GMT

As AI server prices rise, original design manufacturers (ODMs) are hitting record revenue, but also coming under pressure on their gross margins. To defend profitability, manufacturers are cutting costs, negotiating with customers to switch from buy-sell procurement to consignment, and chasing ASIC and general-purpose server orders.

Phison aiDAPTIV accelerates edge AI deployment with Dimensity 9500

Charlene Chen — Fri, 15 May 2026 07:54:04 GMT

Phison and MediaTek teamed up at the recent Dimensity Developer Conference (MDDC 2026) to run a 20B large language model (LLM) on a single device using aiDAPTIV on MediaTek's Dimensity 9500 platform, marking a key breakthrough in edge AI inference.

Samsung shields chip lines as union sticks to strike plan

DIGITIMES — Fri, 15 May 2026 07:44:42 GMT

Samsung Electronics has reportedly begun pre-emptive production adjustments at its semiconductor facilities as its labor union sticks to a planned 18-day strike despite the company's latest offer to resume talks without conditions.

Memory maker Biwin reapplies for listing on Hong Kong Stock Exchange

DIGITIMES — Fri, 15 May 2026 07:41:20 GMT

Biwin Storage Technology recently resubmitted its listing application to the Hong Kong Stock Exchange again, with Huatai Financial Holdings acting as the sole sponsor. The Chinese memory module maker has seen a rebound in profit as demand for memory continues to rise.

Ability Enterprise targets AI and automation growth after strong first-quarter results

Jingyue Hsiao — Fri, 15 May 2026 07:30:16 GMT

Ability Enterprise has said it expects continued revenue and profit growth through 2028 as the company expands beyond traditional imaging products into AI edge computing, robotics, vision systems, and smart automation.

AAEON sees rising orders as AI focus drives 2026 growth plan

Jingyue Hsiao — Fri, 15 May 2026 07:29:16 GMT

AAEON Technology reported sustained demand growth and a rising book-to-bill ratio, signaling stronger momentum into the second quarter and second half of 2026. The industrial PC maker expects double-digit growth for the full year, powered increasingly by artificial intelligence across its hardware and ecosystem strategy.

Nvidia Vera Rubin issues reportedly cleared, supply chain eyes 3Q26 ramp

Charlene Chen — Fri, 15 May 2026 07:23:59 GMT

Market fears over Nvidia's next-generation Vera Rubin platform have eased after supply-chain sources said design issues tied to a cooling architecture change have largely been resolved. Nvidia has now confirmed a mass-production plan with ODMs and key suppliers, putting development back on track and pointing to a volume ramp from the third quarter of 2026.

TSMC to trim Vanguard International stake to 19% in block trade

DIGITIMES — Fri, 15 May 2026 07:23:19 GMT

TSMC said Thursday it plans to sell up to 152 million common shares of Vanguard International Semiconductor (VIS) to institutional investors through a block trade, reducing its stake in the specialty foundry from 27.1% to approximately 19%.

Delta Electronics chair warns RE100 delays could risk Taiwan's global tech orders amid green power shortage

Willis Ke — Fri, 15 May 2026 07:04:33 GMT

Delta Electronics Chairman Ping Cheng has warned that companies failing to meet RE100 targets risk losing orders as global customers intensify demands for renewable energy compliance. His comments highlight mounting concern across Taiwan's technology sector that insufficient green power supply could become the next major constraint on the island's semiconductor and electronics industries.

Maserati turns to Huawei as China's EV power expands into luxury cars

DIGITIMES — Fri, 15 May 2026 06:32:19 GMT

In a move that underscores both the desperation of legacy luxury brands and the growing confidence of China's electric-vehicle (EV) industry, Huawei is reportedly in advanced talks with Maserati and JAC Motors to jointly develop a new generation of high-end EVs aimed at Europe's premium auto market.

Taiwan industry maintains support for non-China supply chain push despite drone budget setback

Eifeh Strom — Fri, 15 May 2026 05:54:03 GMT

Taiwan's legislature recently passed the final version of a special defense budget totaling NT$780 billion (approx. US$24.75 billion), but drone-related funding was not approved. The decision has drawn attention from Taiwan's domestic drone industry, with groups including the Taiwan Defense Industry Development Association (TW-DIDA) and Taiwan National Drone Industry Association (TNDIA) issuing statements calling for continued efforts to strengthen Taiwan's democratic supply chain.

Analysis: Mythos sparks access fight as AI models become strategic assets

Jingyue Hsiao — Fri, 15 May 2026 05:43:01 GMT

Anthropic's decision to limit access of its advanced model, Claude Mythos, to only the US government and a circle of more than 40 Project Glasswing partners has broad implications for global users and policymakers. It signals that leading AI systems are now being treated as strategic assets, reshaping who can compete, defend, and innovate worldwide.

Metalens technology reaches key turning point, as DUV, DLW, NIL processes compete for advantage

Kevin Wang — Fri, 15 May 2026 04:40:58 GMT

Metalens technology is now moving from proofs-of-concept toward targeted applications in smart glasses and machine vision, as its extreme thinness makes it well-suited for use cases with miniaturization demands, even if physical dispersion remains an issue for full-color imaging. The three main manufacturing technologies now in use are deep ultraviolet (DUV) lithography, laser direct writing (DLW), and nanoimprint lithography (NIL), of which MetaOptics currently leads in DLW production, while Taiwan-based players are pursuing NIL manufacturing.

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.