Taiwanese DDI vendors rode a post-pandemic growth wave, but demand turned increasingly uncertain in 2025. Weak consumer end markets, slowing specification upgrades, and intensifying competition from Chinese rivals have sharply raised pressure on local suppliers.

Demand for AI chips is expected to remain strong in 2026, keeping the spotlight firmly on persistent shortages of high-end glass fiber cloth—an essential material in advanced circuit boards and chip packaging.

Taiwan-based passive component maker Yageo said Japan's Shibaura Electronics was officially delisted from the Tokyo Stock Exchange on January 13. Following the completion of the share consolidation, Yageo now holds 100% of the voting rights in Shibaura Electronics as of January 15.

Hermes Testing Solutions Inc. (HTSI), a provider of semiconductor wafer testing solutions, said demand for flexible and highly customized testing equipment is increasing as advanced process nodes continue to shrink and packaging architectures become more complex.

CES 2026, themed "AI Forward," signaled a shift by global tech giants from generative AI models and computing power toward physical AI. Companies showcased AI PCs and notebooks, AI smart glasses, and humanoid robots, targeting emerging opportunities in the edge AI device market.