Japan is preparing a major expansion of state support for advanced semiconductors and artificial intelligence, with the Ministry of Economy, Trade and Industry (METI) set to nearly quadruple related funding from fiscal year 2026, starting in April 2026.

Nvidia CEO Jensen Huang recently received US President Donald Trump's approval for the H200 to return to the China market. Shipments to Chinese customers were reportedly fast-tracked for around February 2026.

A disclosure on China's government procurement platform shows that Shanghai Micro Electronics Equipment (SMEE) has won a contract to supply a step-and-scan lithography system valued at CNY109 million (US$15.5 million). The buyer, identified only by a coded designation under China's Ministry of Science and Technology, has reignited industry scrutiny of Beijing's push to localize semiconductor manufacturing equipment.

Memory maker Winbond Electronics has recently continued to expand capital expenditures by increasing capacity for 16nm and DDR4 DRAM. As inventories of legacy DDR3 products decrease, DDR4 will officially become Winbond's main product in the first half of 2026. The company's new 8Gb DDR4 products manufactured on its in-house 16nm process have recently passed customer qualification smoothly and are expected to enter mass production and shipment in the first to second quarters of 2026.

The US government has decided not to impose additional semiconductor tariffs on China for the next 18 months, despite concluding that Beijing's state-led chip industry policies involve unfair subsidies and market distortion. DIGITIMES analyst Luke Lin stressed in a recent podcast that this should not be misinterpreted as a softening stance toward China.

As demand for artificial intelligence (AI) semiconductors continues to surge, the market for glass substrates, which are widely regarded as a critical material for next-generation advanced packaging, is gaining momentum. South Korean companies such as Samsung Electro-Mechanics (SEMCO) and LG Innotek are gearing up to compete for leadership in this emerging segment.

Microcontroller (MCU) maker ENE Technology has officially entered the drone industry, partnering with Taiwan's HY Tech, Aeroprobing, and Egis to integrate communications, vision modules, and AI image processing and computing technologies. The company also established a new business unit staffed with drone experts to compete in the customized drone IC market.

Intel's 18A process node has reportedly drawn interest from Nvidia, though the chipmaker has yet to commit to using the technology, according to Reuters, citing sources familiar with the matter. The potential collaboration has not progressed, leaving the future of Intel's 18A node in question.

J.K. Wang, a veteran leader in the semiconductor industry and former COO of TSMC, shared insights on TSMC's large-scale wafer fab mass production during his first media interview since retirement. Speaking on DIGITIMES' IC Broadcasting podcast, Wang highlighted how TSMC's success stems from meticulous teamwork rather than any single individual.

The semiconductor industry is increasingly central to national strategies as the US and China intensify state-led investments amid growing tech geopolitical tensions. The US CHIPS and Science Act and China's multibillion-yuan semiconductor funding illustrate a resurgence of state capitalism in high-tech sectors, reshaping global supply chains and industrial competition.

FineMat Applied Materials is retooling its business as China's push to localize its display supply chain cuts into demand for the Taiwanese company's core products, prompting new investments in drones and advanced semiconductor packaging substrates, the company said.

Gallium nitride power devices are rapidly penetrating AI data centers as soaring electricity demand forces operators to rethink power efficiency and density. The shift is pushing US and European power semiconductor suppliers to accelerate partnerships and product development.

Japanese semiconductor equipment giant Tokyo Electron Limited (TEL) announced on December 24, that it will launch a major organizational restructuring and executive management reshuffle in early 2026. As part of the changes, Hikaru Ito, chairman of Tokyo Electron Taiwan, and president Roger Chang will be reassigned to new roles. Tatsuya Nagakubo will assume the position of chairman, while Seiji Nakama will take over as president.

Taiwan-based IC substrate maker Unimicron recently announced that it will sublease part of its Taichung Dajia land and factory to its flexible PCB (FPCB) subsidiary Uniflex Technology. The move addresses overseas customers' non-China production requirements.

Chairman Jim Hung said Innolux will deprioritize shipment volume for its fan-out panel-level packaging (FOPLP) business in 2026, shifting its focus to redistribution layer (RDL) and through-glass via (TGV) technology development to complete customer qualification.

Samsung Electronics is poised to capitalize on US demand due to Taiwan's N-2 policy restricting TSMC's advanced process transfers and its capacity being booked by Apple and Nvidia. The company is testing its second-generation 2nm process with AMD and collaborating with Google for 2026 production, outpacing TSMC's planned 3nm output in 2027.

On December 23, 2025, Softstar Entertainment held an extraordinary shareholders' meeting to approve its official name change to Star Fusion Group, signaling a decisive transformation into a technology- and energy-focused conglomerate. Chairman David Tu said the group now employs around 3,600 people across 11 subsidiaries and more than 30 affiliated companies, spanning gaming, semiconductors, cybersecurity, dining, third-party payments, and heavy electrical equipment.

As US-China technology controls continue to shape the global semiconductor supply chain, the operation of TSMC in China remains under close scrutiny from the market.

Deloitte Taiwan released a report on December 23, 2025, highlighting that AI has moved beyond proof of concept to large-scale commercial deployment, rapidly expanding across core areas such as smart manufacturing, generative content, personalized marketing, and integration with 5G/6G and edge computing. Notably, advances in agentic AI are becoming a major driver of industrial growth. Taiwan continues to hold a critical position as a global node for AI and semiconductors.

Taiwan's Ministry of Economic Affairs (MOEA) announced on December 23, 2025, that export orders from the US reached US$28.45 billion in November 2025, up 12.5% sequentially and 56.1% year-over-year. Orders for information and communications products, focused on artificial intelligence (AI) servers, rose by US$6.43 billion, marking a sharp year-over-year increase of 117.7%.

China's leading foundry, SMIC, is reported to have issued price increase notices to selected customers, marking the start of a pricing adjustment. The company has yet to formally confirm the move.

Malaysia's semiconductor packaging and testing sector is experiencing rapid growth driven by Taiwanese and other foreign investments, according to PwC Taiwan. The firm highlights Malaysia's strategic advantages, including its diverse talent pool, geographic benefits, mature legal framework, and supportive policies, as key factors positioning the country as an emerging hub for semiconductor and high-tech industries in Southeast Asia.

Samsung Electronics is reportedly advancing preparations for its 2026 wafer foundry scale-up at the Taylor, Texas, fab by increasing local headquarters staff and reorganizing production to satisfy key customer Tesla's requirements. The company aims to fast-track volume manufacturing targets for the second half of 2026.

The Office of the US Trade Representative (USTR) has concluded a year-long Section 301 investigation into China's acts, policies, and practices related to its semiconductor industry, determining that they are actionable under US trade law. The findings were published in a notice dated December 23, 2025, and are scheduled to appear in the Federal Register on December 29.