DIGITIMES: News and Insight of the Global Supply Chain

Nvidia takes US$3.5 billion of MediaTek's record US$3.9 billion convertible bond

Joseph Chen — Mon, 31 Aug 2026 14:25:54 GMT

MediaTek has completed pricing on US$3.9 billion of overseas convertible bonds, more than NT$120 billion and what the company says is the largest overseas CB ever issued in Taiwan's capital market. Nvidia subscribed for US$3.5 billion of it — roughly 90% of the offering.

China urges pragmatism over hype in rapidly expanding humanoid robotics market

DIGITIMES — Mon, 31 Aug 2026 09:32:49 GMT

According to OFweek Robotics, China's National Development and Reform Commission (NDRC) has issued a clear warning to the country's booming robotics sector: focus on practical applications and sustainable growth rather than blind speculation. Speaking at an August 28 press conference, NDRC spokesperson Chao Li called for a disciplined approach to development, urging governments and tech firms to build on local resource endowments and industrial strengths rather than blindly following trends.

Smart manufacturing, robotics drive renewed growth in industrial PCs

Sherri Wang — Mon, 31 Aug 2026 09:25:00 GMT

The industrial PC (IPC) industry is entering a new AI-driven recovery cycle as artificial intelligence moves into a broader range of real-world applications. Market research estimates put global IPC output at about US$6.1 billion in 2025, rising to US$8.91 billion by 2030 — a compound annual growth rate (CAGR) of 7.9% that outpaces the broader PC industry.

Taiwan drone bill dispute leaves NT$240 billion procurement plan in limbo

Sherri Wang — Mon, 31 Aug 2026 09:24:42 GMT

The Executive Yuan's proposed Special Act for Indigenous Defense Unmanned Vehicle Procurement failed to win approval in the Legislative Yuan, which instead adopted a version proposed by opposition caucuses, leaving a six-year, NT$240 billion (approx. US$7.6 billion) procurement framework facing uncertainty.

Gudeng sees double-digit advanced packaging growth from 2027

Charlene Chen — Mon, 31 Aug 2026 09:15:00 GMT

Demand for AI and high-performance computing (HPC) continues to drive semiconductor process development, with advanced nodes and advanced packaging entering a new cycle of capacity expansion. Gudeng chairman Bill Chiu said on August 31, 2026, that the company's advanced packaging business is expected to post double-digit revenue growth from 2027 as global demand continues to expand.

U-Best races to launch PFAS-free coatings by 1Q27

Kevin Wang — Mon, 31 Aug 2026 08:57:00 GMT

U-Best Innovative Technology, a unit of Sun Yad Group, is accelerating development of fluorine-free coatings to capture replacement demand driven by EU and US state-level regulations restricting the use of per- and polyfluoroalkyl substances (PFAS) and other "forever chemicals." The company is targeting high-end applications in foldable phones, semiconductors, and displays, with product launches expected in the first quarter of 2027 at the earliest.

Marvell sees 2027 acceleration in scale-up optics

Lily Hess — Mon, 31 Aug 2026 08:55:00 GMT

Marvell said on its fiscal second-quarter of 2027 earnings call that customers are actively planning to deploy scale-up optical solutions as early as 2027, with demand for near-package optics (NPO) now revised higher. The company said copper cabling is increasingly constrained by distance and bandwidth limits as computing systems grow larger, pushing customers to raise the share of optical transmission in their designs.

Nvidia demand nearly doubles as supply meets only 70%

Yunnie Cheng — Mon, 31 Aug 2026 08:55:00 GMT

Nvidia reported second-quarter revenue for fiscal year 2027 of US$96.22 billion, a 106% year-over-year increase, driven by a 117% surge in data center revenue to US$89 billion. With third-quarter revenue of fiscal year 2027 projected to hit US$108 billion and full-year fiscal year 2028 revenue expected to grow around 70%, Nvidia revealed that current supply capabilities meet only about 70% of customer demand. This indicates that the primary constraint on Nvidia's sustained hyper-growth has officially shifted to the supply side.

TSMC tackles the AI I/O wall with two COUPE bandwidth paths and deeper heterogeneous integration

Levi Li — Mon, 31 Aug 2026 08:50:51 GMT

TSMC is sharpening its silicon photonics (SiPh) roadmap to address the widening gap between AI compute growth and chip-to-chip data movement, unveiling two bandwidth-scaling paths for its next-generation COUPE platform and outlining a broader role for heterogeneous integration in future co-packaged optics.

AI Macs, Part 1: OpenAI reportedly buys tens of thousands of Macs for reinforcement learning

DIGITIMES — Mon, 31 Aug 2026 08:35:59 GMT

Apple's Mac mini and Mac Studio are becoming unlikely fixtures in AI infrastructure. OpenAI has reportedly bought tens of thousands of the desktops for reinforcement learning and is seeking more, while Anthropic is renting Mac minis through Amazon Web Services, according to The Information. The systems are being used partly to train computer-use agents that operate software, test code and complete multi-step digital tasks.

Unimicron search puts spotlight on cross-border manufacturing for Taiwan's electronics sector

Lily Hess — Mon, 31 Aug 2026 08:35:00 GMT

Unimicron, a major Taiwanese IC substrate maker, came under intense supply chain scrutiny last week after reports that prosecutors and investigators searched the company over a suspected "origin washing" case. The move has put long-standing cross-border production arrangements in Taiwan's electronics sector under sharper review.

SK Hynix explores Japanese expansion to meet global AI chip demand

DIGITIMES — Mon, 31 Aug 2026 08:34:39 GMT

To capture surging global demand for memory chips driven by artificial intelligence (AI), SK Hynix is actively exploring manufacturing and investment options in Japan.

TSMC sees SiPh going mainstream in 2027

Charlene Chen — Mon, 31 Aug 2026 08:28:42 GMT

Silicon photonics (SiPh) will become mainstream in 2027, with market share topping 50%, as AI scale-out drives explosive growth in optical transceiver demand, said K.C. Hsu, TSMC's advanced packaging technology development vice president, at the Silicon Photonics Global Summit ahead of SEMICON Taiwan 2026 on August 31.

Agentrys, agentic chip design startup backed by MediaTek, raises US$24.5M in funding

DIGITIMES — Mon, 31 Aug 2026 08:07:17 GMT

Chip design company Agentrys announced last week that it raised US$24.5 million in funding from backers including MediaTek. It is one among an emerging crop of startups using agentic tools to power the design of semiconductors, a step in the chip process that still involves considerable amounts of time and labor.

ASE: CPO scale-out demands deeper supply-chain coordination for mass production

Levi Li — Mon, 31 Aug 2026 08:06:39 GMT

SEMICON Taiwan 2026 kicked off its pre-show program with the Silicon Photonics Global Summit.

The 72.4% dominance: China's battery lead is now a chemistry problem for South Korea

DIGITIMES — Mon, 31 Aug 2026 07:55:00 GMT

The global battery space has long been characterized by China's overwhelming dominance, leaving other established players subdued and struggling to establish a foothold in the industry for years.

Gudeng chairman says trust underpins Taiwan supply chains amid Unimicron row

Charlene Chen — Mon, 31 Aug 2026 07:24:19 GMT

Gudeng Precision Industrial chairman Bill Chiu said on August 31, 2026, that trust is the core foundation of Taiwan's place in the global supply chain, as he commented on sensitive issues including alleged country-of-origin labeling violations involving PCB maker Unimicron. He said Taiwanese firms gain opportunities in global markets because of Western customers' trust, warning that undermining that trust would be self-defeating.

Unimicron stock prices fall 10% daily limit, says origin probe covers PCBs, not substrates

DIGITIMES — Mon, 31 Aug 2026 07:08:06 GMT

Unimicron Technology shares plunged to Taiwan's 10% daily downside limit on August 31, the first trading session after prosecutors disclosed an investigation into alleged false country-of-origin labeling. The stock opened at NT$999 (approx. US$31.5), dropping out of Taiwan's NT$1,000-plus share club, with sell orders briefly approaching or exceeding 100,000 lots while only a few thousand lots changed hands during early trading.

US weighs limits on China's access to chips in overseas data centers

DIGITIMES — Mon, 31 Aug 2026 07:05:38 GMT

US restrictions on China's access to advanced computing could expand beyond physical chip shipments to the remote use of computing resources, potentially increasing compliance requirements for cloud providers and data center operators in Southeast Asia.

Cook made sustainability an Apple feature; the ledger he leaves John Ternus is mixed

DIGITIMES — Mon, 31 Aug 2026 07:00:00 GMT

Tim Cook's most durable non-financial decision was to treat environmental and social performance as product attributes rather than corporate disclosure. It worked well enough that Apple's own succession announcement lists it alongside silicon and services. It also leaves John Ternus a set of commitments that get harder every year, a legal challenge to the way they are advertised, and no executive whose full-time job is to deliver them.

The architect of Apple's China machine also built its hardest problem

DIGITIMES — Mon, 31 Aug 2026 07:00:00 GMT

What Tim Cook leaves John Ternus on September 1 is best measured not by margin but by geography. Cook spent twenty-eight years concentrating Apple's manufacturing in one country, then a decade trying to make that concentration politically survivable. Both halves are unfinished, and both are now Ternus's responsibility to bear.

Taiwan vendors chase India's wireless broadband opportunity, with Alpha Networks in the lead

Willis Ke — Mon, 31 Aug 2026 06:55:00 GMT

India's market for Wi-Fi millimeter-wave (mmWave) fixed wireless access (FWA) remains at an early stage, with formal commercial standards still dependent on operators completing field trials and the country's Department of Telecommunications (DoT) advancing the regulatory process.

Kingboard Laminates raises prices again as CCL shortages deepen

DIGITIMES — Mon, 31 Aug 2026 05:55:00 GMT

Kingboard Laminates, a leading Chinese copper-clad laminate (CCL) maker, has issued another price increase notice as shortages of core materials such as fiberglass cloth and copper foil intensify and prices surge. Effective immediately, the company will raise FR-4 substrate prices by 10% across the board, while prepreg (PP) prices will rise 10% for thick cloth of style 7628 and above, and 20% for thin cloth below 7628.

MetaX posts first-half profit while China's AI GPU rivals split

DIGITIMES — Mon, 31 Aug 2026 05:00:00 GMT

MetaX posted its first half-year profit since listing, with rising GPU shipments and the mass production of its C600 accelerator strengthening its commercial position while China's domestic AI chip sector increasingly splits between profitable vendors and peers still absorbing heavy R&D costs.

CXMT's global DRAM push runs into US curbs

DIGITIMES — Mon, 31 Aug 2026 04:30:00 GMT

ChangXin Memory Technologies (CXMT) is suing the Pentagon to overturn its designation as a Chinese military company as the Chinese DRAM maker seeks to turn a global memory shortage into overseas growth.

OpenAI to pull its models from Cursor, highlighting tension with SpaceX's Elon Musk

DIGITIMES — Mon, 31 Aug 2026 04:17:55 GMT

OpenAI announced that it will end its contract allowing its models to be used on Cursor due to the latter's acquisition by SpaceX. The development indicates the tense personal relationship between AI leaders Sam Altman and Elon Musk months after an acrimonious lawsuit between the two and as both companies pursue the lucrative enterprise market.

Samsung Galaxy Z Fold8 demand surges, straining UMC 22nm DDI supply

DIGITIMES — Mon, 31 Aug 2026 04:08:53 GMT

Samsung Electronics' first passport-style foldable, the Galaxy Z Fold8, is reportedly facing tight display driver IC (DDI) supply as demand exceeds expectations. Samsung has continued to raise component orders, but the related 22nm process capacity at United Microelectronics Corporation (UMC) has reached its limit.

Shanghai's 15th Five-Year Plan bets on chips, AI, advanced packaging

DIGITIMES — Mon, 31 Aug 2026 03:55:00 GMT

On August 26, the Shanghai municipal government released its 15th Five-Year Plan for the Development of Strategic Emerging Industries, setting a target for added value in strategic emerging industries to reach CNY2.1 trillion (approx. US$312.5 billion) by 2030. The plan puts ICs, biopharmaceuticals, and artificial intelligence (AI) at the center of the city's industrial strategy, while shifting policy focus from expansion to higher-value areas such as advanced chips, advanced packaging, industrial software, and critical materials.

South Korea risks 'HBM 2.0' trap in emerging CPO market

Sherri Wang — Mon, 31 Aug 2026 03:52:26 GMT

Co-packaged optics (CPO) is emerging as a critical next-generation technology for AI infrastructure, but unless South Korea strengthens its integration and validation capabilities, it risks being left with component-level capabilities while overseas players retain control of platforms and higher-value parts of the ecosystem.

CXMT starts LPDDR6 mass production for Xiaomi 18 Fold, claiming global first

DIGITIMES — Mon, 31 Aug 2026 03:49:54 GMT

China's CXMT has begun mass production of its LPDDR6 memory and will supply the first batch to Xiaomi's upcoming 18 Fold flagship, marking what the company says is the first commercial deployment of LPDDR6 worldwide.

US rallies 24 nations to compete for 6G

DIGITIMES — Mon, 31 Aug 2026 03:31:09 GMT

The US Department of Commerce's National Telecommunications and Information Administration (NTIA) has launched the "Call to Action for 6G Leadership and Security," bringing together 24 partner governments across Europe, the Indo-Pacific, and the Western Hemisphere to advance 6G development.

Asus launches physical AI business group, shifting from EMS to humanoid robots

Eifeh Strom — Mon, 31 Aug 2026 03:30:28 GMT

Asustek Computer (Asus) is accelerating its artificial intelligence (AI) transformation plan, announcing the rebranding of its AIoT Business Group into the Physical AI Solutions Business Group (PAS BG), with humanoid robots positioned as an important strategic market for the future. The move underscores the company's push beyond AI servers into agentic AI, edge AI, and physical AI under the chairman Jonney Shih's AI strategy.

China silicon wafers enter AI-led upcycle: prices rise, 12-inch capacity expands

DIGITIMES — Mon, 31 Aug 2026 03:30:00 GMT

Hangzhou Lion Microelectronics plans to invest about CNY3 billion (approx. US$446 million) in a new 12-inch silicon wafer project in Jiaxing, expanding into a market where AI demand is lifting volumes and prices while China still relies heavily on imported large-diameter wafers.

Taiwan manufacturing know-how is key physical AI asset

Rodney Chan — Mon, 31 Aug 2026 03:04:09 GMT

As artificial intelligence (AI) technology rapidly evolves, physical AI for industrial applications is drawing growing attention because repeatable and scalable tasks play to AI's strengths. Deloitte Taiwan has just released a full report on physical AI ahead of a physical AI seminar it is organizing in Taichung on September 15.

SiFive BigSky brings RISC-V into data centers with CUDA, Nvidia links and enterprise Linux

DIGITIMES — Mon, 31 Aug 2026 02:55:00 GMT

SiFive has introduced its BigSky SF-2U870 development server, positioning the 2U rack system as a platform for hyperscalers, software vendors and SoC developers to port server workloads to RISC-V, tune software and validate production-oriented data center designs.

Commentary: Malaysia's China dilemma sits at the heart of GATE 2026

Charlene Chen — Mon, 31 Aug 2026 02:48:15 GMT

The 2026 Global Automotive and Technology Expo (GATE 2026) closed on August 28 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur. It highlighted Malaysia's contradictory but pragmatic stance toward China in the auto sector. Over the three-day event, the main story for ASEAN's auto industry was not a new car or new technology. It was Malaysia's balancing act around the "China factor."

Interview: Taiwan's National Atomic Research Institute eyes SMRs for AI power shift

Charlene Chen — Mon, 31 Aug 2026 02:41:39 GMT

As global net-zero efforts intensify, governments and major technology companies are investing in emerging nuclear technologies to meet the huge electricity demand from AI data centers and the semiconductor industry. Because nuclear power offers zero-carbon emissions, small modular reactors (SMRs) are drawing growing attention as a potential new power solution in the AI era.

Chinese robotaxis head for Seoul as Pony.ai and FutureLink plan a 200-vehicle fleet

DIGITIMES — Mon, 31 Aug 2026 02:23:48 GMT

A Chinese autonomous driving vendor is set to take a commercial position in a market whose own robotaxi industry has yet to clear the hurdle to commercialization. Pony.ai and South Korea's FutureLink signed a strategic cooperation agreement on August 28 at the Conrad Seoul in Yeouido to introduce 200 seventh-generation robotaxis, targeting fully driverless operation in Seoul by 2028, The Asia Business Daily reported. Pony.ai co-founder and chief executive James Peng attended the signing alongside FutureLink chairman Nam Kyung-pil and chief executive Cha Doo-won, according to SBS.

Musk tackles key AI power bottleneck with in-house turbine foundry

DIGITIMES — Mon, 31 Aug 2026 02:20:50 GMT

A move by SpaceX to manufacture turbine blades in-house could ease a global bottleneck in AI infrastructure, where power equipment is now as constrained as chips. If successful, the plan could speed data center buildouts, shift supply chains, and strengthen Musk's control over the timing of new energy capacity.

AI smart glasses race heats up as MEMS enable wearability

Yunnie Cheng — Mon, 31 Aug 2026 02:19:01 GMT

Once mocked as "computers on the nose bridge," AI smart glasses have long suffered from a trade-off between advanced AI capabilities and lightweight comfort. However, this race is set for a major turning point in 2027. Future models promise to combine powerful AI, superior thermal management, and accessible price points, offering a wearing experience so seamless that users will barely notice they are wearing AI hardware.

China's silicon wafer makers report profit gains of varying quality

DIGITIMES — Mon, 31 Aug 2026 01:57:53 GMT

Seven Chinese silicon wafer producers reported first-half 2026 results in the second half of August, indicating an uneven sector recovery. Several semiconductor-grade wafer makers swung from losses to reported profits, though how much of that improvement came from core operations rather than one-off items varies widely by company. The two solar-wafer producers in the group, meanwhile, remain far deeper in the red amid a separate, unrelated downturn.

Taisic Materials produces Taiwan's first 12-inch SiC boule with homegrown crystal growth furnace

Eifeh Strom — Mon, 31 Aug 2026 01:47:20 GMT

Taisic Materials, a subsidiary of Kenmec Mechanical Engineering, has successfully produced Taiwan's first 12-inch silicon carbide (SiC) boule using a crystal growth furnace independently developed by Kenmec.

Weekly news roundup: US pressures Korea chip investment, MediaTek wins Google TPU, Apple debuts 2nm M6

DIGITIMES — Mon, 31 Aug 2026 01:27:24 GMT

Semiconductor investment, AI chips, advanced packaging and data center infrastructure dominated the week, with South Korea facing US pressure, India scaling chip manufacturing, and Apple, Qualcomm, MediaTek and Taiwan suppliers advancing new AI and 2nm strategies. Below are the most-read DIGITIMES stories from the week of August 24-30, 2026.

France draws Taiwanese investment projects worth EUR7.5 billion

DIGITIMES — Mon, 31 Aug 2026 01:26:01 GMT

Taiwanese investment projects announced or under implementation in France are worth about EUR7.5 billion (approx. US$8.7 billion), according to the French Office in Taipei, led by ProLogium's battery project and Foxconn's expansion into advanced semiconductor packaging and AI infrastructure.

Lightel posts record first-half revenue, profit as LEO satellite demand rises

DIGITIMES — Sun, 30 Aug 2026 23:26:26 GMT

Lightel Technologies reported record first-half results for 2026, with consolidated revenue reaching NT$590 million (US$18.7 million), net profit at NT$107 million, and earnings per share of NT$4.34. The Taiwan-based optical components maker said the gains came as shipments tied to low Earth orbit satellite projects continued to scale up.

Samsung launches Galaxy S26 FE with lower price

DIGITIMES — Sun, 30 Aug 2026 23:25:44 GMT

Samsung Electronics launched its Galaxy S26 Fan Edition in the second half of 2026 with a starting price of 1.045 million won in South Korea, or about US$714, as it sought to round out its smartphone lineup and address rising component costs. According to ET News and Bloomberg, global sales of the 256GB model were set to begin on September 4.

India roundup: India broadens semiconductor and AI ambitions across manufacturing, design, materials and data centers

DIGITIMES — Sun, 30 Aug 2026 23:25:24 GMT

India's semiconductor ambitions are expanding from packaging and testing to chip design, materials, mobile devices and data centers. New investments by CG Power, Infineon, Foxconn, Samsung and LG highlight rising industrial activity, while skills shortages, environmental constraints and import dependence remain challenges. Government incentives increasingly seek deeper domestic capabilities and higher value creation.

Podcast highlights: Xiaomi's 3nm chip cap, HBM in Malaysia, and Nvidia's margin tradeoff

Lily Hess — Sun, 30 Aug 2026 23:25:00 GMT

Can Xiaomi's in-house chip reach 2nm? Is HBM rerouting to Malaysia TSMC giving Intel a pass? Can Nvidia hold a 75% gross margin or protect market share? Ahead of Apple's September 10 event, the pre-event technology lull was anything but quiet, and DIGITIMES analyst Luke Lin broke down three stories and the industry logic behind them.

China optical display investment shrinks 80% in 1H26

Kevin Wang — Sun, 30 Aug 2026 23:24:18 GMT

China's optical display industry is cooling after years of aggressive panel fab construction that has reshaped the global display landscape. Investments in China's optical display sector fell 80.3% year-on-year in the first half of 2026, underscoring a slowdown in capacity expansion with capital now shifting toward optical materials and mini/micro LED (MLED) displays.

USI advances optical interconnect push with ELSFP laser module

DIGITIMES — Sun, 30 Aug 2026 23:23:36 GMT

Universal Scientific Industrial (USI), part of ASE Technology Holding, is expanding its optical interconnect footprint for AI data centers. EugenLight Technologies, in which USI holds a controlling stake, has launched its ultra-high-power (UHP) external laser source form-factor pluggable (ELSFP) module series, targeting high-speed optical interconnect demand in next-generation AI compute clusters, high-performance computing (HPC), and high-density data centers, with mass production scheduled for the first quarter of 2027.

Repon to ship Vera Rubin rails in August, ramp ASIC in September

DIGITIMES — Sun, 30 Aug 2026 23:23:16 GMT

Server rail maker Repon began shipping Nvidia's Vera Rubin rack products in August 2026, with ASIC server rack rails set for mass production in September. The higher average selling price of Vera Rubin rack rails, along with a growing number of end customers, is expected to lift the company's second-half performance.

Tex Year's specialty chemicals push could reshape its growth mix as AI and optics expand

Jingyue Hsiao — Sun, 30 Aug 2026 23:22:48 GMT

Tex Year is widening its specialty chemicals business beyond LCDs and electronics into AI servers, in-vehicle electronics, Mini LED, and optical lenses, while also targeting optical communications, silicon photonics (SiPh), and advanced packaging. The company says the segment is set to become its second growth engine as demand shifts toward higher-value applications.

MCE expands auto electronics capacity to defend Malaysia's domestic market

Charlene Chen — Sun, 30 Aug 2026 23:22:20 GMT

MCE Holdings Berhad (MCE) is expanding its product lines and capacity as Chinese competitors intensify pressure on Malaysia's auto parts industry, with the company aiming to defend its position as a leading local supplier.

AI pushes autonomous driving toward a more pragmatic commercial model

Jingyue Hsiao — Sun, 30 Aug 2026 23:21:59 GMT

AI is reshaping the autonomous driving competition by shifting automakers away from an all-or-nothing race toward higher levels of self-driving. Instead, the industry is focusing on Level 2+ systems that mimic Level 3 performance, while building data, revenue, and regulatory groundwork that could matter for drivers and markets worldwide.

Taiwan boosts talent retention with innovation law changes

DIGITIMES — Sun, 30 Aug 2026 23:21:31 GMT

Taiwan's Legislative Yuan on August 27 passed amendments to parts of the Industrial Innovation Act, extending the startup eligibility period from under 5 years to under 8 years and raising the tax deferral cap on employee stock compensation from NT$5 million to NT$10 million. The changes, aimed at strengthening corporate talent retention and recruitment amid global competition, will take effect from January 1, 2027.

Innodisk says AI demand is lifting margins while memory supply remains tight

Jingyue Hsiao — Sat, 29 Aug 2026 23:42:30 GMT

Innodisk said its AI-focused product mix is driving stronger revenue and profitability, a sign that global demand for memory and infrastructure hardware remains robust. The company also warned that tight supply and rising prices may continue for years, with implications for AI builders, industrial users, and enterprise customers worldwide.