DIGITIMES: News and Insight of the Global Supply Chain

Thunder Tiger debuts new loitering munition drone at AUSA 2026

Eifeh Strom — Thu, 15 Oct 2026 23:57:29 GMT

Thunder Tiger showcased its latest defense systems at AUSA 2026, the Association of the United States Army's annual exhibition in the US, marking its fourth consecutive appearance at the event and its largest booth to date. The Taiwan-based company presented three key products in a bid to capture US defense opportunities.

Samsung SDI targets 2027 LFP BBU battery production

Charlene Chen — Thu, 15 Oct 2026 23:56:51 GMT

Samsung SDI will begin mass-producing cylindrical lithium iron phosphate (LFP) batteries for AI servers as early as June 2027, marking the first adoption of cylindrical LFP backup batteries by a South Korean battery maker. The move expands the company's product portfolio beyond its traditional focus on ternary batteries as AI data centers drive rapidly growing demand for battery backup units (BBUs).

AI power crunch drives data center demand for self-generation

Kevin Wang — Thu, 15 Oct 2026 23:56:37 GMT

The focus of the global AI race has shifted from securing advanced chips to securing access to electricity, with electrical power now becoming the deciding factor for computing capacity. As power consumption surges at AI data centers (AIDCs), conventional public grids are increasingly facing bottlenecks, and self-generation and improved grid resilience are now requirements in major data center construction projects worldwide.

MediaTek ASIC deal with ByteDance would expand data center push

DIGITIMES — Thu, 15 Oct 2026 23:56:21 GMT

ByteDance is in advanced talks with MediaTek to purchase custom data center chips, with the companies potentially reaching an agreement soon, according to people familiar with the matter. A deal would help ByteDance secure critical chip supplies while expanding MediaTek's data center business and intensifying competition with Qualcomm and other chipmakers.

Cloud AI absorbs resources as non-AI semiconductors face prolonged downturn

Lily Hess — Thu, 15 Oct 2026 23:55:35 GMT

Investment in AI data centers remains strong, but semiconductor growth is becoming increasingly concentrated in cloud AI, while the long-running decline in consumer technology prices has come to an abrupt halt. At a SEMICON West 2026 industry outlook session, Duncan Meldrum, an economist at Hilltop Economics, warned that the shift is putting additional pressure on the broader semiconductor market.

TSEC focuses overseas solar strategy on Japan rooftops

Lily Hess — Thu, 15 Oct 2026 23:53:37 GMT

TSEC is focusing its overseas expansion on Japan's rooftop solar market and expects Taiwan's solar installations to recover in 2027 from a market low point. For the Taiwan-based solar manufacturer, building a solar plant in the US remains an important direction, but it is not an immediate priority, as the company monitors the uncertainty around the US Minimum Import Price (MIP) policy.

TSMC excludes CPUs from AI accelerator growth forecast

Eifeh Strom — Thu, 15 Oct 2026 23:52:51 GMT

Taiwan Semiconductor Manufacturing (TSMC) is seeing rising demand for CPUs related to agentic artificial intelligence (AI), but has not yet included CPUs in its calculations of AI accelerator demand growth. TSMC chairman C.C. Wei said at the company's earnings conference on October 15 that the company is maintaining its original, narrower definition of AI demand, mainly because it is difficult to clearly distinguish whether CPUs are used in traditional servers or AI servers. Actual demand also depends on how customers deploy the technology and configure their products.

Hesai moves beyond lidar as Kosmo targets physical AI's data bottleneck

DIGITIMES — Thu, 15 Oct 2026 23:52:23 GMT

As artificial intelligence increasingly blurs the boundary between the digital and physical worlds, complications associated with real-world deployment — particularly the extreme variability of physical environments — are emerging as a subtler configuration challenge in the industry spotlight.

China's 90%-localized EUV light source debuts at 15W, exposing the gap to commercial chipmaking

DIGITIMES — Thu, 15 Oct 2026 23:52:06 GMT

Chinese semiconductor technology start-up Langdao Silex (Shanghai) Technology has publicly unveiled an extreme ultraviolet (EUV) light source prototype with a claimed 90% localization rate, marking progress in China's efforts to develop domestic lithography technology. However, the system remains three to five years from mass production, with output power and long-term stability posing major engineering challenges.

Manus returns to China's AI agent race with US$500 million reset

DIGITIMES — Thu, 15 Oct 2026 23:51:43 GMT

As Manus, one of China's more distinctive AI startups, became entangled in the high-profile unwinding of its acquisition by Meta, the startup's failed attempt to capture opportunities beyond China left the industry speculating about its next steps after an abrupt regulatory reversal.

China's YMTC targets 9,600 MT/s with 4F² DRAM design

DIGITIMES — Thu, 15 Oct 2026 23:51:20 GMT

China's Yangtze Memory Technologies (YMTC) is developing a next-generation 4F² DRAM design targeting data transfer speeds of 9,600 megatransfers per second (MT/s), expanding beyond NAND flash as the company pursues a CNY33 billion (approx. US$4.93 billion) Shanghai initial public offering.

Interview: The AI economy needs US$6T in funding — but from where?

DIGITIMES — Thu, 15 Oct 2026 23:49:10 GMT

AI is clearly making an enormous impact on the global economy, with capabilities extending from language chatbots to agentic teams and the physical realm within just a few years. A new report by consulting firm Bain takes stock of AI's effects on businesses so far and projects how it could shape the near future.

Samsung's Austin chip workforce shrinks 32% as Taylor 2nm fab nears opening

DIGITIMES — Thu, 15 Oct 2026 23:48:28 GMT

Samsung Electronics' semiconductor workforce in Austin, Texas, shrank 32% in 2025 as local operating expenditures plunged nearly 75%, contrasting with increased activity at its nearby Taylor foundry, which is preparing to begin operations by the end of 2026 and gradually ramp up 2nm chip production.

LG Innotek eyes 2027 chip substrate growth as Big Tech supply talks continue

DIGITIMES — Thu, 15 Oct 2026 23:44:55 GMT

South Korea's LG Innotek expects its semiconductor substrate business to improve in 2027 as it pursues long-term supply agreements (LTAs) with major technology companies and prepares to enter the high-end AI accelerator market. Under this strategy, the company aims to secure customer commitments before expanding production capacity as it seeks to diversify beyond smartphone camera modules.

AI server tracker: Optical suppliers' September revenue jumps 90%

DIGITIMES — Thu, 15 Oct 2026 23:44:38 GMT

Taiwan's optical communications suppliers posted a sharp revenue increase in September 2026, far outpacing major power supply manufacturers in percentage growth as demand for faster data center connectivity continued to expand. The six optical suppliers tracked by DIGITIMES reported combined revenue of NT$3.73 billion (approx. US$116 million), up 90.2% year-over-year and 16.4% from August.

LINE Taiwan pushes AI services as it marks 15 years and deepens anti-fraud role

Jingyue Hsiao — Thu, 15 Oct 2026 23:44:07 GMT

LINE Taiwan marked its 15th year in the market with a strategy shift that signals broader ambitions beyond messaging. The company is expanding into AI-powered daily services, aiming to connect users, brands, and merchants through agentic AI tools, while also strengthening account security and anti-fraud defenses.

Qualcomm advances complete AI infrastructure platform as agentic AI reshapes competition

Lily Hess — Thu, 15 Oct 2026 23:43:44 GMT

Qualcomm has historically provided standard chips primarily through its Snapdragon product line, serving a broad range of end customers. After officially launching its Dragonfly data center product line in June 2026, the company expanded its business to include multiple hyperscalers.

Anthropic targets low-conflict sites for Australian data centers

DIGITIMES — Thu, 15 Oct 2026 15:24:00 GMT

Anthropic plans to place new data centers in Australia away from densely populated areas, using renewable energy and previously developed sites to reduce conflicts with residents. The US artificial intelligence company is evaluating proposals from state and local governments competing for its investment, while expanding computing capacity in the country.

Japan Mobility Show puts Physical AI and cross-sector partnerships in focus

DIGITIMES — Thu, 15 Oct 2026 14:24:00 GMT

Japan Mobility Show Bizweek 2026 showcased Physical AI applications, including Toyota's basketball-playing robot and an air-ground inspection system, as automakers and startups explored new business opportunities beyond traditional vehicles. The business-focused exhibition, held in Japan, sought to demonstrate how robotics, artificial intelligence and mobility technologies could address industrial challenges through collaboration across sectors.

Toyota targets 1,000 e-Palette sales ahead of 2027 autonomous launch

DIGITIMES — Thu, 15 Oct 2026 12:23:00 GMT

Toyota Motor Corp. plans to sell 1,000 units of its compact electric bus, the e-Palette, within five to six years as it prepares to introduce a Level 4 autonomous driving version in fiscal 2027, which runs from April 2027 through March 2028. The target is more than 10 times the vehicle's current sales, positioning the e-Palette for broader use in mobility services across Japan.

Luxnet posts record 3Q profit as capacity expansion fuels growth

Lily Hess — Thu, 15 Oct 2026 12:00:00 GMT

Optical communications maker Luxnet reported a September 2026 net profit attributable to parent-company owners of NT$103 million (US$3.21 million), up 110.2% year-over-year, with earnings per share (EPS) of NT$0.72. September EPS exceeded half of the second-quarter 2026 EPS of NT$1.29, signaling strong momentum in the second half of the year.

TSMC bars capacity resale, aims to leave no AI money on the table

Joseph Chen — Thu, 15 Oct 2026 09:20:45 GMT

TSMC will not let customers sublease or auction off their wafer capacity allocations, chairman C.C. Wei said during the company's October 15 earnings call. With AI chip demand still far outstripping supply, Wei said TSMC intends to leave no food on the table, making as much as it can, as fast as it can.

TSMC investor conference: TSMC lifts 2026 revenue growth forecast to 44%, 2nm expansion, new 3nm fab

Yunnie Cheng — Thu, 15 Oct 2026 09:15:13 GMT

TSMC Chairman and CEO C.C. Wei announced that, driven by relentless AI momentum and strong demand for advanced process technologies, the company has raised its full-year 2026 US dollar revenue growth guidance to approximately 44%. AI and leading-edge nodes continue to serve as the core growth pillars for the foundry's operations.

OpenAI pledges not to use Apple secrets, accuses ex-employee of taking files

DIGITIMES — Thu, 15 Oct 2026 09:13:15 GMT

Apple's trade-secret lawsuit against OpenAI went to a hearing, where OpenAI pledged not to use confidential information that Apple claims was stolen. OpenAI also accused a former employee of taking more than 100 documents related to unreleased products when joining Apple.

EU seeks China deal to lift ASML supplier sanctions amid rare-earth crisis

DIGITIMES — Thu, 15 Oct 2026 09:11:32 GMT

The European Union (EU) is negotiating with China to lift sanctions on Sindlhauser Materials GmbH, a small German business that is part of ASML's supply chain, according to people familiar with the matter. In exchange, the EU would remove trade restrictions on a Chinese company previously accused of assisting Russia's war against Ukraine.

AI agents in suspected Tencent Cloud sandbox target Alibaba’s Amap mapping service

DIGITIMES — Thu, 15 Oct 2026 09:09:46 GMT

An international AI research team has detected a fleet of more than a dozen AI agents operating in a suspected Tencent Cloud infrastructure sandbox and repeatedly attempting to penetrate Amap, the mapping service owned by Alibaba Group Holding Ltd.

Aurotek posts record 3Q26 revenue, up 58% on automation demand

DIGITIMES — Thu, 15 Oct 2026 08:40:58 GMT

Aurotek Corp. reported record consolidated revenue of NT$1.113 billion (US$34.7 million) in the third quarter of 2026, up 57.93% from a year earlier. Orders from semiconductor, high-end artificial intelligence (AI) server and electronics manufacturing customers drove demand for the company's automation equipment and subsystems.

FIC Group opens Malaysia plant as optical module capacity targets 18 SMT lines

DIGITIMES — Thu, 15 Oct 2026 08:39:50 GMT

FIC Group opened its PRO3C (Malaysia) Sdn. Bhd. manufacturing facility in Johor, Malaysia, on October 15, expanding its optical communications production footprint in Southeast Asia. The Johor Bahru site is designed to support global customers with 800G, 1.6T, 3.2T and 6.4T optical communication modules as demand grows across artificial intelligence, high-performance computing, data centers and semiconductor applications.

Trump says Taiwan will buy 30% of LNG output from Alaska project; Taipei confirms plans but not final terms

DIGITIMES — Thu, 15 Oct 2026 08:32:59 GMT

US President Donald Trump said at a Republican rally in Alaska on Tuesday that Taiwan had agreed to buy 30% of liquefied natural gas (LNG) from a planned Alaska pipeline project over 20 years, according to Reuters. Commerce Secretary Howard Lutnick, who also spoke at the rally, said Taiwan had committed to investing US$4.4 billion.

Touch Taiwan 2027 expands tech scope with advanced packaging and SiPh shows

Yunnie Cheng — Thu, 15 Oct 2026 08:25:00 GMT

Touch Taiwan 2027 will take place on April 21–23, 2027, and will expand its scope with two dedicated co-located shows: the Advanced Packaging & Testing Expo and the Silicon Photonics Technology Applications Expo. Spurred by surging demand for AI, high-performance computing (HPC), and high-speed data transmission, the new additions will run alongside the established Smart Manufacturing and Smart Display exhibitions, creating a unified platform spanning semiconductor technologies, optical communications, intelligent manufacturing, and end applications.

AI server tracker: AIC accelerates as Taiwan's connector and chassis suppliers post uneven growth

DIGITIMES — Thu, 15 Oct 2026 08:20:00 GMT

Taiwan's connector and server-chassis suppliers posted broadly higher September revenue, although their growth trajectories differed. Seven of eight tracked companies recorded annual gains for both September and January–September 2026. BizLink, AIC and Chenbro had already exceeded their full-year 2025 revenue, while Argosy remained below last year's levels.

TSMC CEO says profitability has no ceiling, plans High-NA EUV adoption in 2030

Sherri Wang — Thu, 15 Oct 2026 08:14:39 GMT

TSMC chairman and CEO C.C. Wei said on October 15 that the chipmaker sees no ceiling on its profitability as demand for AI accelerators continues to outpace supply. Wei also said AI-related growth could exceed the company's long-term forecast and outlined plans to adopt high-numerical-aperture extreme ultraviolet (High-NA EUV) lithography in 2030.

SK Hynix reportedly ties US NAND fab plan to approval for chip equipment exports to China

DIGITIMES — Thu, 15 Oct 2026 08:11:12 GMT

SK Hynix is seeking US approval to ship additional American chipmaking equipment to its NAND flash facility in Dalian, China, linking the request to a potential investment in a new US factory, Reuters reported on October 15, citing two people familiar with the matter.

AI server tracker: Taiwanese ODM/EMS players post NT$2.18T in September 2026, up 56% YoY

DIGITIMES — Thu, 15 Oct 2026 08:10:41 GMT

Six Taiwanese server and networking contract manufacturers booked combined revenue of NT$2.18 trillion (US$67.3 billion) in September 2026, up 55.9% year-over-year and 4.9% month-over-month, as demand for AI servers stayed strong. Nine-month revenue of NT$15.5 trillion already exceeds the group's full-year 2025 total of NT$14.3 trillion.

Applied Materials CEO says agentic AI drives wafer demand

Charlene Chen — Thu, 15 Oct 2026 08:02:25 GMT

Applied Materials CEO Gary Dickerson said customer demand to produce more good dies per wafer and rapidly expand wafer output has reached levels unprecedented in his career, driven by the rise of AI computing. Speaking at a global investor conference, he said the company expects revenue from related businesses to grow by more than 20% over the next several years.