DIGITIMES: News and Insight of the Global Supply Chain

Phison CEO sees years of NAND shortage, AI growth chance

Lily Hess — Mon, 17 Aug 2026 07:39:28 GMT

Phison Electronics CEO Pua Khein-Seng said the company is seizing a once-in-a-lifetime chance to transform into a high-growth business as AI agents drive massive demand, keeping NAND Flash supply tight for many years. He said 2027 capacity constraints will be even more severe than in 2026, leaving room for further price gains, though the pace of increases will gradually narrow.

Samsung's China sales overtake US; Nvidia not among top five customers

DIGITIMES — Mon, 17 Aug 2026 07:24:54 GMT

Samsung Electronics' sales to China and the US surged in the first half of 2026 as an AI-driven memory upcycle boosted its semiconductor business, while Nvidia did not rank among the company's five largest customers despite growing ties between the two companies in high-bandwidth memory (HBM).

Record orders, yet profits squeezed: Asia-Pacific electronics supply chain caught in cost crunch

Scarlett Yu — Mon, 17 Aug 2026 07:10:49 GMT

Global Electronics Association survey data show that demand across the global electronics manufacturing industry maintained steady expansion in the first half of 2026, with orders, shipments, and capacity utilization strengthening in most months. Capacity utilization, in particular, reached an all-time high since the survey began in June.

LG-Nvidia physical AI partnership speeds up as robotics chief reportedly heads to South Korea

Scarlett Yu — Mon, 17 Aug 2026 06:28:36 GMT

Less than a week after LG Group and Nvidia signed a strategic memorandum of understanding (MOU), Madison Huang, Nvidia's senior director of product marketing for Omniverse and robotics, is reportedly preparing to visit South Korea and head directly to one of LG's key robotics R&D sites.

Giant warns rising bicycle parts costs will pressure margins

Rodney Chan — Mon, 17 Aug 2026 06:20:00 GMT

Giant said rising raw material prices and price hikes for components from Japanese supplier Shimano, starting from August 2026, will add cost pressure, prompting the bike maker to raise prices on new products to offset the impact. Even so, the company said short-term gross margins are unlikely to hold at prior levels.

China's Vertilite commits US$741M to InP laser chips for AI optical interconnects

Levi Li — Mon, 17 Aug 2026 06:09:23 GMT

Chinese optical chipmaker Jiangsu Vertilite Semiconductor Technology is investing CNY5 billion (approx. US$741 million) in a new communications chip and device R&D and manufacturing base in Changzhou, expanding beyond VCSELs into high-end indium phosphide, or InP, laser chips for AI optical interconnects.

Nvidia closing in on US$100B credit guarantee deal for OpenAI's Ohio data center

DIGITIMES — Mon, 17 Aug 2026 06:09:22 GMT

Nvidia is approaching an agreement to provide credit guarantees of around US$100 billion for OpenAI's 10GW data center in Ohio, among the largest AI infrastructure projects ever, according to The Information. This is a significant reduction from earlier plans by Nvidia to guarantee US$250 billion for the project, although it would remain by far Nvidia's largest such commitment.

LG, Nvidia step up humanoid push with robot data factory

DIGITIMES — Mon, 17 Aug 2026 04:50:00 GMT

Nvidia's Madison Huang is set to visit LG Electronics' Yangjae R&D campus in Seoul on August 18 to inspect the company's robot data factory and hold closed-door talks with senior LG executives on robotics cooperation, according to Yonhap and Chosun Biz.

China battery makers rework costs as lithium prices fall and taxes rise

Willis Ke — Mon, 17 Aug 2026 04:32:19 GMT

China's lithium battery industry is entering a new phase of cost restructuring as falling lithium carbonate prices, uncertain supply conditions and higher taxes squeeze manufacturers' margins, according to Chinese media reports.

Taiwan extends graduate stays to 2 years to ease talent shortages

DIGITIMES — Mon, 17 Aug 2026 04:18:55 GMT

Taiwan has begun allowing overseas Chinese and foreign graduates with associate degrees or higher to extend their residence for up to two years, a change that has already driven a sharp rise in applications. The policy took effect in January 2026 and is intended to help address the island's talent shortage while making it easier for employers to hire recent graduates.

India draws 20 bids for rare earth magnet manufacturing scheme

DIGITIMES — Mon, 17 Aug 2026 04:07:55 GMT

India's Ministry of Heavy Industries (MHI) has received 20 bids from domestic and global companies under its scheme to promote manufacturing of sintered rare earth permanent magnets (REPM), a step toward building a local supply chain for a material India currently imports almost entirely from China, according to DD News and the New Indian Express.

TSMC and Micron boom drives Taiwan 'fab five's 1H26 profits

Charlene Chen — Mon, 17 Aug 2026 04:00:22 GMT

TSMC, Micron, ASE, and SPIL continue to expand their advanced-node and OSAT investments, driving stronger first-half 2026 results for Taiwan's fab engineering players — including UIS, MIC, L&K Engineering, YKE and Acter. Together, these five companies, which design and build the specialized facilities and infrastructure that chipmakers rely on, make up what the industry calls the "fab five." With expanding reach into the US, ASEAN and Singapore, the "fab five" have maintained high order backlogs.

Samsung weighs Giheung R&D line for 2nm HBM foundry capacity

DIGITIMES — Mon, 17 Aug 2026 03:59:38 GMT

Samsung Electronics is reportedly considering repurposing the second line at its next-generation semiconductor R&D complex in Giheung into a foundry send-fab, a shift that would add advanced-node capacity as demand for AI memory strains leading-edge capacity.

Nokia axes 1,600 jobs and Hangzhou R&D center in deepening China telecom retreat

DIGITIMES — Mon, 17 Aug 2026 03:59:05 GMT

Nokia is accelerating its retreat from China, closing its Hangzhou R&D center and cutting about 1,600 jobs as shrinking market access, geopolitical friction and a broader global restructuring reshape the Finnish telecom equipment maker's footprint in the world's largest 5G market.

Fallout from Wingtech's Nexperia rupture: the price of rebuilding China's chip supply chain

DIGITIMES — Mon, 17 Aug 2026 03:55:30 GMT

Wingtech is entering a sharply different phase after dismantling much of its product-integration business and losing effective control over parts of Nexperia's overseas operations. The Chinese technology group posted a steep first-half revenue contraction and swung to a loss, while legal disputes in the Netherlands and Singapore now complicate its effort to rebuild around semiconductors and a more China-centered supply chain.

Samsung Electro-Mechanics, LG Innotek substrate lines near full capacity as AI demand rises

DIGITIMES — Mon, 17 Aug 2026 03:33:24 GMT

Samsung Electro-Mechanics (SEMCO) and LG Innotek pushed their semiconductor package substrate operations close to full capacity in the first half of 2026 as shipments of high-value substrates for AI accelerators, server CPUs, memory and data center networking climbed, company filings and earnings materials show.

Anthropic, OpenAI's looming mega-IPOs heat up AI revenue race

DIGITIMES — Mon, 17 Aug 2026 03:30:25 GMT

Anthropic and OpenAI are turning their AI rivalry into a revenue race, with both companies posting sharp growth, gaining enterprise customers, and preparing for potential public listings. Coding tools, subscriptions, and AI agents are emerging as key growth engines, while investors increasingly view the two firms as the leading private-market contenders in generative AI.

Tata succession clouds outlook for chips, clean energy, data centers

DIGITIMES — Mon, 17 Aug 2026 03:27:11 GMT

Tata's leadership transition may shape the pace of one of India's biggest industrial bets. The group's planned spending on chips, clean energy, and AI data centers is entering a critical stage, but a shift toward tighter capital discipline could slow expansion and alter priorities worldwide.

US drone tariff tests whether allies can truly replace China

DIGITIMES — Mon, 17 Aug 2026 03:25:41 GMT

Washington has spent years tightening controls on Chinese technology across strategically important supply chains. That playbook is now expanding into drones, where the Trump administration's latest tariffs seek not only to restrict Chinese market access but to reshape the economics of the broader unmanned-aircraft supply chain.

Apple reportedly builds China-specific AI model with Alibaba as Qwen partnership deepens

DIGITIMES — Mon, 17 Aug 2026 03:14:02 GMT

Apple has trained a large language model (LLM) specifically for the Chinese market with support from Alibaba, according to Reuters, marking a shift from its previous reliance on third-party Chinese models for Apple Intelligence.

WaveSplitter returns to profit as AI optics demand lifts 1H revenue

DIGITIMES — Mon, 17 Aug 2026 03:12:09 GMT

WaveSplitter posted NT$477 million (US$14.95 million) in consolidated revenue in the first half of 2026, up 47% from a year earlier, and returned to profit as demand from AI data centers and the broader market lifted shipments of high-speed optical communications products. Net profit attributable to the parent company reached NT$6.16 million, compared with a loss in the same period of 2025, while earnings per share came to NT$0.19.

Apple faces US pressure over potential Chinese memory chip sourcing

DIGITIMES — Mon, 17 Aug 2026 03:10:58 GMT

The Trump administration is pressing Apple to find alternatives to Chinese memory suppliers as the company weighs ways to navigate a global memory shortage that has sharply increased component costs, according to The Wall Street Journal.

Hermes Testing's 1H26 profit more than triples on rising AI testing demand

Eifeh Strom — Mon, 17 Aug 2026 02:53:54 GMT

Hermes Testing Solutions (HTSI), a semiconductor testing solutions provider, stated that continued growth in demand for artificial intelligence (AI) and high-performance computing (HPC), coupled with capacity expansion by major global foundries and packaging and testing companies, has driven demand growth across its three main businesses: probe cards and cleaning materials, testing equipment engineering services, and semiconductor equipment and customized products.

OCP APAC 2026: When AI starts running the hardware that runs it

DIGITIMES — Mon, 17 Aug 2026 02:53:49 GMT

The tech industry has long been fixated on one persistent bottleneck: the physical limitations of high compute in the AI era. But what if the industry's focus, rather than pouring endless resources into infrastructure scaling and thermal architecture, should instead turn toward the reverse of that equation?

Topoint's high-end drill bits hit 56% share ahead of schedule, aims to double capacity by end of 2028

Eifeh Strom — Mon, 17 Aug 2026 02:40:31 GMT

Printed circuit board (PCB) drill bit manufacturer Topoint Technology stated during its second-quarter 2026 earnings call that strong demand for artificial intelligence (AI) servers and high-performance computing (HPC) has significantly improved its product structure. High-end coated drill bit products accounted for 56% of product share in the first half of the year, already exceeding the company's original full-year target of 55%.

US tariffs and FCC curbs redraw the drone supply chain — and Taiwan sees an opening

Sherri Wang — Mon, 17 Aug 2026 02:34:06 GMT

US President Donald Trump has moved to impose tariffs of up to 100% on drone systems and components deemed strategically sensitive. The step follows moves by the Federal Communications Commission (FCC) to tighten market access for foreign-made drones, including a July proposal to restrict the continued import and marketing of certain previously authorized foreign-produced drones and critical components.

AI server growth is lifting Taiwan ODM revenue, but margins now face the harder test

Jingyue Hsiao — Mon, 17 Aug 2026 02:26:13 GMT

Taiwan's top six original design manufacturers are seeing AI servers become the main revenue engine in 2026, but the boom is also bringing heavier exposure to expensive GPUs, CPUs, high-bandwidth memory, and networking parts. That has broadened the sales base while making gross margin protection a central concern in the industry.

Weekly news roundup: AI expansion fuels supernodes, post-HBM memory, liquid cooling and supply-chain shifts

DIGITIMES — Mon, 17 Aug 2026 02:04:55 GMT

This week's most-read stories traced the AI boom across the stack, from supernodes and next-generation memory to liquid cooling, solar power, telecom services and PCB demand. Below are the most-read DIGITIMES stories from the week of August 10-16, 2026.

Stripe reportedly agrees to buy AI routing startup OpenRouter for more than US$7 billion

DIGITIMES — Mon, 17 Aug 2026 02:02:44 GMT

Stripe has reportedly finalized an agreement to acquire OpenRouter, a startup that helps businesses switch between artificial intelligence (AI) models, for more than US$7 billion, Bloomberg reported August 17, citing people familiar with the matter who spoke on condition of anonymity because the information is not public. The final price could still change, Bloomberg said. A Stripe spokesperson said the company does not comment on rumors or speculation, and OpenRouter declined to comment, according to the report.

Kaynes Semicon eyes photonics, quantum security and neuromorphic chips in India tech push

DIGITIMES — Mon, 17 Aug 2026 01:47:48 GMT

Kaynes Semicon is looking at silicon photonics (SiPh) and co-packaged optics (CPO), post-quantum security, and neuromorphic computing as potential areas for expansion as India prepares the next phase of its semiconductor support program, CEO Raghu Panicker said.

Modi pledges more chip plants, mass AI training, and an export push in Independence Day address

DIGITIMES — Mon, 17 Aug 2026 00:53:21 GMT

Prime Minister Narendra Modi used India's 80th Independence Day address from the Red Fort on August 15 to tie semiconductor manufacturing, artificial intelligence training, and trade policy into a single self-reliance push, framing all three as building blocks toward a "Viksit Bharat," or developed India, by 2047.

LG, Nvidia deepen ties on humanoid robots, AI factories, and vehicles

DIGITIMES — Mon, 17 Aug 2026 00:52:23 GMT

LG said on Wednesday that it is developing a next-generation bipedal humanoid robot with Nvidia technology, a move that could influence how factories, vehicles, and service robots are built and deployed worldwide. The South Korean conglomerate also outlined plans for AI manufacturing sites and a future vehicle platform, signaling broader competition in physical AI.

OCI thins solar wafers to boost Vietnam output 39%

DIGITIMES — Sun, 16 Aug 2026 23:54:32 GMT

OCI Holdings is turning to thinner solar wafers to raise output from its Vietnam operations by nearly 40% without adding production lines, as demand from US customers outpaces existing capacity.

AI server tracker: Demand drives strong growth across Taiwan's CCL, design services, substrate, and testing supply chains

DIGITIMES — Sun, 16 Aug 2026 23:54:18 GMT

Taiwan's AI server supply chain continued to show strong growth in July 2026, with revenue rising across copper-clad laminate (CCL), design services, substrates, and testing. All four segments recorded year-over-year growth, while design services posted the strongest monthly increase.

India roundup: India's electronics push gains momentum as water, China ties and chip incentives collide

DIGITIMES — Sun, 16 Aug 2026 23:54:01 GMT

India's electronics and AI infrastructure ambitions are accelerating, but mounting environmental opposition, tighter Chinese visa curbs, and intensifying competition for semiconductor investment are exposing new challenges. As Google advances a US$15 billion AI data center, Larsen & Toubro (L&T) restructures its cloud business, and Dixon Technologies expands its smartphone OEM business, states are sweetening incentives to strengthen India's position in global technology supply chains.

Twoway Communications speeds defense push with C-UAS, unmanned vehicles

Lily Hess — Sun, 16 Aug 2026 23:53:36 GMT

Twoway Communications said its July 2026 consolidated revenue was NT$139 million (US$4.3 million), down 0.4% from a year earlier. For January to July 2026, consolidated revenue reached NT$1.1 billion, up 35.0% from the same period in 2025.

AI vision sensing demand heats up for Novatek, PixArt, Elan, Realtek

Lily Hess — Sun, 16 Aug 2026 23:53:07 GMT

Taiwanese IC design firms that have been building out AI vision sensing businesses are now reaping the rewards, with major players including display driver IC (DDI) leader Novatek Microelectronics, Himax Technologies, and Realtek Semiconductor, as well as PixArt Imaging and Elan Microelectronics, saying that revenue in this area is rising quickly. The companies see AI vision sensing as set to become a key part of their overall revenue mix.

DFI accelerates edge AI rollout in 2H26 with ‘Right Compute’ strategy

DIGITIMES — Sun, 16 Aug 2026 23:52:44 GMT

Industrial PC (IPC) maker DFI held its second-quarter 2026 earnings conference on August 14, reporting a sharp improvement in profitability as its embedded, intelligent automation and network security businesses all gained momentum. Revenue growth accelerated further in July, strengthening the company's confidence in the second-half outlook.

FSC plans MLPC trial production by end-2026 in passive component push

DIGITIMES — Sun, 16 Aug 2026 23:52:28 GMT

FS said it plans to begin trial production and shipments of high-end MLPC stacked solid-state capacitors by the end of 2026 as it expands beyond plastic injection molding machines into passive components. The move was outlined alongside the company's second-quarter 2026 financial update and marks a new growth line tied to AI and GPU supply chains.

Toppan eyes FC-BGA substrate price hikes as new line fills up

Charlene Chen — Sun, 16 Aug 2026 23:52:12 GMT

Japan's Toppan is negotiating price increases for FC-BGA substrates with customers as its new FC-BGA substrate plant ramps up, lifting the operating margin of its electronics business and doubling consolidated net profit. Nikkei Asia reported that the additional production line at Toppan's FC-BGA substrate factory in Niigata, Japan, began operations in January 2026, doubling the plant's FC-BGA substrate capacity from the first half of fiscal 2022 (April-September 2022).

E Ink cuts 2026 outlook as signage gains momentum

Charlene Chen — Sun, 16 Aug 2026 23:51:56 GMT

E Ink has lowered its 2026 revenue growth outlook after rising memory prices hit demand for consumer electronics, but the company said IoT and e-paper signage businesses remain strong. Full-year revenue growth is now expected at 10-15%, down from an earlier forecast of 20-25%, while consumer electronics revenue could fall by double digits.

T-glass demand surges as IC substrate makers see shortages through 2028

Charlene Chen — Sun, 16 Aug 2026 23:51:39 GMT

As the global AI computing infrastructure boom drives rapid demand growth for GPUs, CPUs, and ASICs, the ABF substrate industry is set to swing into shortage in 2026, with the supply-demand gap expected to widen in 2027-2028. That has lifted order visibility for IC substrate makers in Taiwan, Japan, and South Korea, with the outlook now stretching as far as 2029-2030. Companies including Ibiden, Unimicron, Kinsus, Nan Ya Printed Circuit Board, Leading, and Samsung Electro-Mechanics are all moving into a new round of capacity expansion.

Fu Chun Shin lifts second quarter margins on stronger electronics demand

DIGITIMES — Sun, 16 Aug 2026 23:51:22 GMT

Fu Chun Shin Machinery said rising investment in smart manufacturing and AI infrastructure lifted demand for high-precision, high-efficiency, and intelligent equipment across ICT, semiconductor, and electronics supply chains. The plastic injection molding machine maker reported higher gross margin and operating margin in the second quarter, with both measures improving year-on-year.

Solomon posts record 2Q26 profit as AI vision, robotics orders surge

Scarlett Yu — Sun, 16 Aug 2026 23:51:07 GMT

AI vision specialist Solomon Technology Corporation reported strong financial results for the second quarter of 2026, with quarterly profit reaching a record high. Solomon chairman Cheng-Lung Chen said orders related to AI vision and robotics have surged since the beginning of the year, setting the stage for substantial growth in 2026.

Gogolook sees 2026 revenue hit new high as anti-fraud businesses expand

DIGITIMES — Sun, 16 Aug 2026 23:50:55 GMT

Taiwanese trust technology company Gogolook said its revenue and profitability are expected to stay strong in the second half of 2026, helped by continued growth, critical operating scale, and efficiency gains from generative AI. The company said full-year revenue is likely to reach a new record as its consumer anti-fraud, enterprise anti-fraud, and fintech services all expand.

Taiwan's Century Group eyes SMR supply chain as AI power demand accelerates

Willis Ke — Sun, 16 Aug 2026 23:50:44 GMT

AI-driven electricity demand is prompting Century Group to broaden its energy ambitions beyond offshore wind. The group plans to enter the small modular reactor (SMR) supply chain through reactor peripheral equipment and aims to obtain TÜV Rheinland technical and safety certification within three years, positioning itself for what it sees as a major wave of low-carbon power investment tied to AI data centers.

Unique Opto sees AI demand lift 1H26 results, but CPO upside remains uncertain

Jingyue Hsiao — Sun, 16 Aug 2026 23:50:25 GMT

Unique Opto-Electronics said stronger demand tied to artificial intelligence applications lifted first-half profitability above 2025 levels, while management struck a cautious tone on growth in the second half of 2026 and 2027. The company also said its optical glass business could benefit from co-packaged optics (CPO), but the size of any contribution remains unclear.

Appier lifts FY26 outlook after record second-quarter revenue and margin gains

DIGITIMES — Sun, 16 Aug 2026 23:50:08 GMT

Appier, an agentic AI-as-a-service provider, reported record second-quarter 2026 revenue of JPY12.9 billion and raised its fiscal 2026 outlook on the back of stronger growth and higher profitability. The results, announced on the 13th, showed revenue up 24.6% year-on-year and gross margin reaching 60.1% for the first time, with both revenue and operating profit beating the company's guidance.

Sigurd tops NT$2B in July revenue as AI testing demand surges

DIGITIMES — Sun, 16 Aug 2026 23:49:51 GMT

Sigurd Microelectronics, an IC testing and packaging company, reported record July 2026 revenue and said demand from AI and AI connectivity markets drove the result. The company said orders for high-performance computing chips, including CPUs, GPUs, ASICs, and AI accelerators, lifted testing demand for silicon photonics, high-speed networking, memory, silicon capacitors, baseboard management controller chips, and high-end power management ICs used in AI servers and data centers.

Samsung, SK Hynix HBM4 hiring war drains South Korea's chip design talent

DIGITIMES — Sat, 15 Aug 2026 22:41:24 GMT

South Korea's semiconductor talent shortage is intensifying as Samsung Electronics and SK Hynix recruit experienced chip designers for increasingly complex HBM4 products, drawing key engineers away from fabless companies and design houses while tighter restrictions complicate movement between the country's two memory giants.