Optical communications provider Ezconn reported a record gross margin of 61.67% in the second quarter of 2025, rising 12.25pp from the prior quarter and 8.51pp year-over-year. However, an NT$500 million (US$16.7 million) forex loss tied to the surging New Taiwan dollar dragged net profit down 39.14% sequentially to NT$196 million.

The "frenemy" relationship between Samsung Electronics and Apple, spanning over 20 years, has once again become a focal point. Reports indicate that the two tech giants are deepening cooperation in the US.

Apple announced a collaboration with Samsung's Austin-based wafer foundry to develop a new chip technology, though Samsung declined to comment.

Radio frequency front-end chipmaker RichWave held its earnings call on August 1, 2025, and shared its outlook for the coming months. In the second quarter, RichWave posted a loss mainly due to the appreciation of the New Taiwan dollar and the slower-than-expected penetration of Wi-Fi 7. For the second half of the year, the sluggish performance in the Chinese market is the main reason Wi-Fi 7 adoption has fallen short of expectations.

Gallium arsenide (GaAs), gallium nitride (GaN), and Monolithic Microwave Integrated Circuit (MMIC) power amplifier (PA) specialist Transcom announced on July 31, 2025, that it has made a breakthrough in the critical field of defense communications. The company is also actively expanding into the commercial microwave market, demonstrating strong momentum through a dual-track development strategy.

Largan Precision posted July 2025 revenue of NT$5.413 billion (approx. US$181 million), up 31% from June but unchanged from a year earlier. Revenue for the first seven months of 2025 totaled NT$31.665 billion, representing a 14% increase compared to the same period in 2024.

Apple reported strong iPhone sales in its fiscal third-quarter 2025 earnings, pushing overall revenue higher and triggering a ramp-up in shipments across the optical lens supply chain ahead of the new model cycle.

LandMark Optoelectronics Corporation (LMOC) expects third quarter 2025 revenue to remain flat or edge higher as China eases export restrictions on indium phosphide (InP) substrates. While suppliers have resumed shipments, production lags persist due to revalidation requirements. Silicon photonics products for data centers now lead LMOC's portfolio, with demand already extending into 2026.

Apple, Qualcomm, and MediaTek exceeded expectations in recent financial results, driven by final Chinese government subsidies and anticipation of tariff hikes later in the year. This scenario led to early smartphone upgrades, bolstering revenues for these major industry players.

Murata released its financial results for the second quarter of 2025, reporting consolidated operating profit of JPY61.6 billion (US$414.5 million), down 7.2% year-over-year; net profit was JPY49.7 billion, a decrease of 25% year-over-year. Although these figures exceeded market expectations, net profit declined for the first time in nearly two years due to yen appreciation and intense competition from Chinese manufacturers in the smartphone electronic components market.

Rising Qualcomm chip prices and improving Exynos yield rates have prompted Samsung to consider using its in-house Exynos 2600 in the 2026 Galaxy S26 base model. South Korean industry sources say the move depends on whether yield stability can be achieved.

Business exchanges between Chinese and Taiwanese makers have shown significant increases amid concerns over US tariffs, trade restrictions, and global supply chain restructuring, with China and Hong Kong together remaining the biggest market for Taiwan's exports.

Below are the top DIGITIMES Asia stories from July 14 to 20, 2025. The top three topics include Nvidia teams up with Micron for a major SOCAMM rollout, aiming to challenge high-bandwidth memory. Moreover, Nvidia begins limited GB300 AI server production. For China's semiconductor sector, Huawei's "Little HiSilicon" launches a wide range of chips, including its first RISC-V models.

Corning Inc. has avoided the threat of European Union antitrust fines, after it agreed to end exclusivity terms in its supply contracts for break-resistant smartphone screens that the watchdog deemed to be anticompetitive.

It was previously expected that China's consumer subsidies would offset the smartphone demand decline in the US caused by the reciprocal tariffs. However, the actual subsidy impact remains rather limited. Extended replacement cycles and cooling economic conditions have caused global smartphone demand to weaken.

South Korean giant Samsung Electronics recently unveiled its latest generation of foldable smartphones, including the Galaxy Z Fold 7, Galaxy Z Flip 7, and the more affordable Galaxy Z Flip 7 FE, further expanding its product lineup. Coinciding with this, smartphone brand Vivo also launched its foldable flagship Vivo X Fold5 for the first time in Taiwan. Vivo has risen to become the third-largest player in the Taiwanese market, surpassing Oppo and trailing only Apple and Samsung.

Samsung Display is reportedly gearing up to become the exclusive supplier of OLED panels for Apple's first foldable iPhone, signaling a deepening partnership between two of the biggest names in tech.

As the third quarter of 2025 kicks off, smartphone brands around the world are rolling out new models, hoping to rejuvenate the sluggish market as inflation, currency swings, and trade tensions continue to weigh on consumer demand. While the smartphone market continues to face challenges like product maturity, high market penetration, and extended replacement cycles, making it difficult to achieve strong overall sales momentum, it's fortunate that generative AI has boosted the industry in recent years. Brands have progressively incorporated AI functionalities into their mid- and high-end models, which has helped sustain smartphone sales.

MediaTek posted a 33-month revenue high of NT$56.43 billion (approx. US$1.92 billion) in June 2025, up 24.91% from the previous month and 30.96% year over year. Overall revenue in the first half of 2025 totaled NT$303.68 billion, a 16.47% increase from the same period last year.

Despite a generally negative outlook for the second half of the year, Largan, a key market indicator, stressed during its earnings call that the demand momentum for new flagship smartphones remains largely unchanged compared to previous years.

Apple Inc. is planning an ambitious pipeline of new products for release during the first half of 2026, including a new low-end iPhone, multiple iPads and upgraded Macs.

Taiwan-based lens manufacturer Largan Precision held an online earnings call on July 10, during which it explained that exchange rate fluctuations had a significant impact on the company in the second quarter of 2025. The company previously predicted that the New Taiwan dollar would appreciate by 10%, affecting the second-quarter gross margin by 4-5%. However, pull-ins for new devices had already begun at favorable pricing, resulting in an actual impact of around 2%.

Global foldable smartphone shipments rose only 9% year-over-year in the first quarter of 2025, a steep decline from the triple-digit growth seen in earlier years, according to Counterpoint Research. Now entering its sixth year of commercialization, the segment is losing steam, largely due to Apple's continued absence from the market.