The silicon photonics (SiPh) and common packaged optics (CPO) solutions supply chains are emerging this year. Japanese testing equipment maker Advantest says that although optical communications have advantages in energy efficiency and high transmission speeds, there remains three major technical challenges that have yet to be standardized before related chip products are formally launched. These issues will need to be addressed as the industry transitions from electrical to optical communications.

Amid escalating geopolitical tensions between China and Japan, China has recently imposed stricter review measures on rare earth exports to Japan. Chinese authorities now reportedly require exporters to submit more detailed declarations, including the actual use of rare earths, the products they are applied to, and whether these products are re-exported to the US or other third countries.

Samsung Electronics will begin test operations of extreme ultraviolet lithography equipment at its Taylor, Texas, fabrication plant in March, as it prepares for full operations in the second half of 2026, according to Hankyung. The facility is set to manufacture Tesla's AI5 and AI6 autonomous driving chips under a US$16.5 billion contract secured in July 2025.

TSMC and Apple have maintained a close partnership over the years, working like one team to push Moore's Law forward. According to SemiAnalysis, Apple employs hundreds of engineers stationed at TSMC headquarters, effectively treating the foundry as an extension of its own operations.

The US' recent announcement of a 25% tariff on certain advanced computing chips, including Nvidia's H200 and AMD's MI325X, could have implications for Malaysia's semiconductor sector, though experts suggest immediate effects may be limited. The tariffs, justified by the White House on national security grounds, aim to incentivize domestic chip production and reduce reliance on overseas suppliers such as Taiwan.

The global contest for semiconductor leadership took a confrontational turn this week. US officials used Micron Technology's groundbreaking in upstate New York to deliver blunt warnings to foreign rivals.

Apple Inc., Qualcomm Inc., and MediaTek are all set to advance their smartphone system-on-chip (SoC) offerings to the 2nm process node in 2026. This coordinated move signals the three giants' determination to maintain technological leadership, even as the incremental benefits of process improvements come under scrutiny.

Taiwanese integrated circuit design houses used the 2026 Consumer Electronics Show in the US to seek new partnerships, signaling that success in the next phase of edge artificial intelligence will depend as much on software and algorithms as on silicon.

Demand for power management integrated circuits (PMICs) from Taiwanese manufacturers is showing signs of stabilization, particularly in cloud AI servers, industrial control, and automotive markets, industry sources said. While consumer applications continue to experience seasonal declines, leading global PMIC players are concentrating on higher-end fields, creating opportunities for Taiwanese firms to expand.

Kaynes Semicon Private Limited, a wholly owned subsidiary of Kaynes Technology India Limited, has signed a Fiscal Support Agreement and related transaction documents with the India Semiconductor Mission (ISM), marking a key procedural milestone in the implementation of government-backed incentives for semiconductor manufacturing.