DIGITIMES Asia: News and Insight of the Global Supply Chain

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.

Intel's preliminary Apple deal puts Samsung's foundry ambitions under pressure

DIGITIMES — Wed, 13 May 2026 09:07:46 GMT

Intel's reported preliminary agreement to manufacture some chips for Apple is putting new pressure on Samsung Electronics, as the US chipmaker gains momentum with major technology customers and leans on Washington's support to revive its foundry business.

Inventec sees strong AI, general-purpose server demand through 2028

Eifeh Strom — Wed, 13 May 2026 09:05:53 GMT

Inventec expects both artificial intelligence (AI) servers and general-purpose servers to see growth in 2026, with company president Jack Tsai noting that orders for the latter are expected to grow through 2028. The company also plans to double capital expenditure in 2026, focusing on expanding production sites to meet customer demand.

Ajinomoto raises ABF substrate film prices 30%

Charlene Chen — Wed, 13 May 2026 09:02:37 GMT

Ajinomoto has informed IC substrate makers that it will raise prices for its key ABF build-up film by 30%, with the new pricing expected to take effect in the third quarter of 2026. Taiwanese package substrate makers confirmed they have received the official notice, as cost pressure in the IC substrate supply chain remains elevated.

Dixon Technologies sees margin pressure as stagnation offsets full-year growth

DIGITIMES — Wed, 13 May 2026 09:01:14 GMT

Dixon Technologies reported fiscal 2026 results showing full-year revenue growth, but underlying profitability momentum weakened toward the end of the year, with a flat fourth quarter and mounting cost pressures across its core electronics manufacturing services (EMS) business.

AI demand lifts Zhen Ding as server and chip substrate sales surge

Elaine Chen — Wed, 13 May 2026 08:59:09 GMT

Taiwanese printed circuit board maker Zhen Ding Technology Holding reported first-quarter 2026 revenue that reached a record for the period, as booming demand for artificial intelligence infrastructure helped offset the seasonal slowdown typically associated with consumer electronics.

Commentary: AI server ODMs face margin squeeze as memory costs soar

Lily Hess — Wed, 13 May 2026 08:32:37 GMT

As AI server orders surge, system assembly makers are finding that more business does not always mean better profits. High-priced GPUs and soaring memory costs are pushing up revenue without lifting manufacturing fees at the same pace, leaving original design manufacturers (ODMs) facing lower gross margins as assembly orders grow.

Taiwan capacitor maker Chinsan locks in Thailand AI server capacity through 2026

Levi Li — Wed, 13 May 2026 08:02:42 GMT

Taiwan Chinsan Electronic Industrial said strong demand from cloud and server customers pushed related revenue contribution to 35% in the first quarter of 2026, with high-margin AI server applications accounting for roughly half of the segment.

AI server tracker: ASPEED sees sustained growth as AI server demand strengthens BMC market outlook

DIGITIMES — Wed, 13 May 2026 07:44:54 GMT

ASPEED Technology has continued to show strong revenue momentum in recent years, supported by structural changes in global data center infrastructure and the rapid expansion of AI server deployments.

L&T Semiconductor Technologies signs multiyear agreement with Synopsys for AI-enabled power module design

DIGITIMES — Wed, 13 May 2026 07:39:13 GMT

L&T Semiconductor Technologies' multiyear agreement with Synopsys to use AI-enabled multiphysics simulation software could accelerate the development of power modules and intelligent power modules, potentially affecting global electric mobility, renewable energy, and industrial automation by improving design efficiency, reliability, and time-to-market for next-generation power electronics, and by enhancing supply-chain resilience.

Imec's IC-Link joins TSMC 3DFabric Alliance, extending 3D integration access worldwide

DIGITIMES — Wed, 13 May 2026 07:23:32 GMT

Imec's IC-Link has joined TSMC's OIP 3DFabric Alliance, opening up broader access to TSMC's 3D stacking and packaging technologies for global ASIC customers. The move could accelerate the development of multi-die systems, smoothing paths to high-volume manufacturing and benefiting designers across AI, high-performance computing, automotive, and telecommunications markets worldwide—as well as technology supply chains.

Global smartphone AP industry, 1Q 2026: Memory price hikes pressure smartphone AP market

DIGITIMES — Wed, 13 May 2026 07:22:52 GMT

Global smartphone AP shipments in the second quarter of 2026 are estimated to see a yearly decline of 15.2% as memory price hike pressure emerges.

Anthropic in talks to acquire Stainless, SDK startup serving Google and OpenAI

DIGITIMES — Wed, 13 May 2026 07:22:22 GMT

Anthropic is reportedly in advanced talks to acquire Stainless, a startup that builds software development kits for AI companies, including Google and OpenAI. The deal could value Stainless at over US$300 million, according to The Information.

Canada opens limited EV market to China as automakers jockey for position

Elaine Chen — Wed, 13 May 2026 07:18:52 GMT

Under a new Canada-China electric vehicle (EV) agreement, Lotus, owned by China's Geely Group, has become one of the first automakers to begin shipments to Canada from Chinese ports. Other Chinese brands, including Chery and BYD, are expected to enter the Canadian market gradually before the end of the year. At the same time, market speculation has emerged that Tesla may have quietly shifted supply sources for its Model 3 in Canada to its Shanghai factory, after the model recently appeared at sharply lower prices.

TECO expands into AI data centers with Malaysia acquisition deal

Elaine Chen — Wed, 13 May 2026 07:15:42 GMT

Taiwan-based industrial manufacturer TECO Electric & Machinery said on May 12 that its board had approved the acquisition of Malaysian engineering firm Dynaciate Engineering Sdn. Bhd. for about RM200 million (approx. US$50.8 million), in a deal expected to close in August 2026. After completion, TECO will gain controlling ownership, with revenue and earnings from the acquired company expected to begin contributing to consolidated results in the second half of 2026.

Altasec deepens edge AI imaging push into Europe and US security markets

Rodney Chan — Wed, 13 May 2026 07:13:51 GMT

Altasec Technology, a smart security and control solutions provider founded in 2011, will list on Taiwan's Emerging Stock Board on May 14 as it moves to capture demand from AI applications and expand further into the European and US security markets.

Y.S. Tech sees strong high-end cooling demand, but new plant costs weigh on profit

DIGITIMES — Wed, 13 May 2026 06:01:33 GMT

Y.S. Tech reported that demand for high-end networking IT cooling and automotive orders lifted consolidated revenue to NT$1.129 billion in the first quarter of 2026 and operating profit to NT$41.97 million, increases of 14.45% and 24.26% year-over-year respectively, while quarterly after-tax profit fell to NT$38.27 million with earnings per share of NT$0.48 due to new plant entry costs and equipment depreciation that began in the fourth quarter of 2025.

Compal lifts non-PC revenue to 35%, eyes 2Q26 server surge

Jingyue Hsiao — Wed, 13 May 2026 05:55:44 GMT

Compal Electronics' non-PC operations grew to 35% of first-quarter 2026 revenue, signaling a shift in global supply chains as the notebook and server maker advances toward a 40% annual target; investors and customers worldwide may see a changing product mix, margin pressures, and inventory dynamics affecting suppliers, pricing, and markets.

Tesla boosts Berlin output with US$250M battery cell expansion

DIGITIMES — Wed, 13 May 2026 05:11:46 GMT

Tesla is investing US$250 million to expand battery-cell production at its Berlin-Brandenburg Gigafactory, reinforcing its long-term commitment to Europe just as the company starts to regain momentum in the region after more than a year of weak sales.

China's fiber optic giant unveils world's largest preform for AI data center boom

Levi Li — Wed, 13 May 2026 04:55:39 GMT

China's Fiberhome Telecommunication Technologies has unveiled what it claims is the world's largest optical fiber preform, highlighting China's accelerating push to strengthen its position in AI-driven optical networking and high-speed data infrastructure.

India's smartphone shipments fall in 1Q26, signaling value-led market shift

DIGITIMES — Wed, 13 May 2026 04:49:49 GMT

India's smartphone shipments fell 4.1% year over year to 31.0 million units in the first quarter of 2026, according to IDC. Rising memory prices and subdued consumer demand pushed average selling prices higher, reshaping the balance between volume and value in the world's second-largest smartphone market — and signaling a structural shift that carries significant implications for global suppliers.