ASE Group's co-packaged optics (CPO) strategy is close to complete. In addition to launching advanced packaging solutions that integrate optical engines (OE) and application-specific integrated circuits (ASICs), its subsidiary Universal Scientific Industrial (USI) is also expanding in optical communications. USI recently announced that it has completed the acquisition of a controlling stake in Chengdu-based EugenLight Technologies.
Taiwan and the US have agreed to reduce tariffs and grant Taiwan most-favored-nation status under Section 232 for semiconductors and related products. However, a major issue has arisen regarding the financing for Taiwan's investment commitments. The US Fact Sheet cites Taiwan's credit guarantee financing as "at least" US$250 billion, while the official Memorandum of Understanding (MOU) between the two specifies an "upper limit" of US$250 billion. This inconsistency has led to questions about the exact nature of Taiwan's financial obligations and how they will be implemented in the future.
Samsung Electronics' foundry division is expected to increase factory utilization to the 60%–70% range this year as the company focuses on improving profitability ahead of large-scale artificial intelligence chip production for Tesla, according to South Korean media reports, including The Asia Business Daily and ZDNet Korea.
At the recent World Economic Forum in Davos, India's IT Minister outlined the country's efforts to boost its semiconductor industry, highlighting the emergence of 24 Indian IC design startups, with 18 benefiting from venture capital investments. This underscores India's drive to reclaim a significant role in integrated circuit design amid concerns over ongoing talent migration to foreign firms.
Rayzher Industrial, a leader in high-tech gas supply systems, approved organizational restructuring and senior management changes at its board meeting on January 22. The company established an Innovation Business Group to support growth aligned with global semiconductor and advanced manufacturing industry trends.
Thailand is reinforcing its ambitions as a regional technology hub, approving US$3.1 billion in data center projects while unveiling a national semiconductor and advanced electronics strategy aimed at building a fully integrated "Made-in-Thailand" chip ecosystem by 2050.
Under the leadership of Sino-American Silicon Products Group (SAS) chairwoman Doris Hsu, 2026 was set to be a pivotal year for the group's compound semiconductor business unit, which was to advance aggressively. This outlook stemmed from SAS's deep positioning in high-performance power electronics and communication components, particularly its proactive deployment targeting AI servers and next-generation communication technologies.
Global semiconductor equipment suppliers are accelerating their push into advanced packaging. They are positioning back-end processes as a new growth engine as artificial intelligence drives demand for more complex chip integration.
US Commerce Secretary Howard Lutnick is driving a fundamental reordering of the global semiconductor supply chain. According to exclusive analysis from DIGITIMES analyst Luke Lin, the administration has shifted its pressure campaign away from advanced logic chips and toward memory, delivering a blunt ultimatum to South Korea's two dominant producers: build wafer fabs in the US or face tariffs of up to 100%.
TSMC chairman C.C. Wei confirmed adjustments in 8-inch and mature process capacities to improve efficiency, with Samsung also cutting 8-inch output. Despite these reductions and price hikes by Chinese foundries like SMIC and Huahong, the 2026 market remains oversupplied.
TSMC has significantly expanded its advanced packaging capacity in recent years to meet surging AI customer demand. Despite planning six to eight phases for the Chiayi site, internal assessments indicate this remains insufficient. The company is now considering acquiring land for an additional facility in Yunlin, according to supply chain sources.
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