While Taiwanese EMS firms aggressively capitalize on booming AI server demand, their Chinese counterparts are exploring alternative growth engines amid continued weakness in the consumer electronics market. Increasingly, Chinese EMS companies are turning their attention to long-term investments in emerging sectors such as smart glasses and robotics.

With the Trump administration set to impose a yet-to-be-defined reciprocal tariff, and the US launching a national security investigation under Section 232 of the Trade Expansion Act, Taiwan's Ministry of Economic Affairs (MOEA) has commissioned the Taiwan External Trade Development Council (TAITRA) to assist local businesses in expanding to markets beyond the US. Due to the characteristics of Taiwan's industrial sector, with its high density and high market concentration, the move aims to reduce the dependence on a single market, enhance supply chain resilience, and improve global competitiveness.

After months of negotiations, the US and the EU announced a new trade framework agreement, effective August 1, under which the US will impose a unified 15% tariff on most European imports. This rate is substantially lower than the initially proposed tariffs, ranging from 30% to 50%, including key sectors such as automobiles, pharmaceuticals, and semiconductors, helping to prevent an escalating trade conflict.

Below are the top DIGITIMES Asia stories from July 21 to 27, 2025. The top three topics include MediaTek winning Meta's order for 2nm ASIC; Asus, Microsoft revive Xbox hardware with ROG handheld launch; and YMTC plans to pilot a fully China-made NAND line in 2025.

Dixon Technologies has received approval from India's Ministry of Electronics and Information Technology (MEITY) to set up a joint venture with Longcheer Intelligence. The clearance falls under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and includes Press Note 3 (PN3) approval—mandatory for investments from entities linked to countries sharing land borders with India.

China's tighter rare earth export controls are disrupting Apple's plan to expand manufacturing in India as Dixon Technologies solidifies its status as the local largest mobile phone manufacturer by shipments.

Meta Platforms Inc. is reportedly reviving its smartwatch project, potentially with a camera lens, timed with its Meta Connect conference on September 17-18 in the US. The smartwatch is expected to complement Meta's upcoming AI glasses. China's Huaqin is said to be the primary manufacturer, while Taiwanese companies are not significantly involved.

Acer Group has further expanded its portfolio of publicly listed subsidiaries, as Shine Passion Engineering, reinvested in by its smart service arm Acer Synergy Tech, received regulatory approval on July 24 for an initial public offering (IPO) on the Taipei Exchange (TPEx).

Flex raised its full-year forecast after posting record first-quarter earnings, fueled by soaring demand for data center infrastructure amid accelerating adoption of artificial intelligence technologies.

Since the pandemic-driven surge ended in mid-2022, Chromebook shipments have steadily declined. According to notebook supply chain sources, Chromebook shipments fell to 17.5 million units in 2024, below both Google's and the market's expectations. However, driven by renewed demand from government and education projects, overall shipments are expected to recover, reaching an estimated 19 million to 19.5 million units in 2025.

Sanjiang Electric, part of Uniplus, has received safety certifications from Underwriters Laboratories (UL) and Canadian cUL, allowing the sale of their 15kV-25kV transformers in North America. This marks a key step in their international growth.

Ablecom Technology, a supplier of high-end server chassis and thermal solutions, has announced plans to build a factory in the Netherlands while simultaneously launching phases two and three of its Malaysia factory construction project.

Japan has pledged to invest US$550 billion in the US economy under a sweeping trade deal unveiled July 22, 2025, aiming to avert steep auto tariffs. The pact expands US access to Japan's markets across autos, agriculture, and defense while deepening bilateral ties in semiconductors, energy, and critical infrastructure, according to Nikkei, Reuters, and Yomiuri.

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.

With Japan agreeing to invest US$550 billion in US markets and open sectors including automobiles, rice, and agricultural products under a new trade agreement in exchange for the US to cut its reciprocal tariffs on Japan to 15%, sources from industry analysts believe the deal is unlikely to reshape Japanese consumers' auto preferences.

Taiwan-based mechanical motion control component maker Hiwin Technologies has recently made progress in expanding its presence in the European market, announcing that its Italian subsidiary received the "Supplier Award" from the Voilap Group, an Italian maker of industrial equipment. Additionally, it ranked first in the transmission components category in Italian Machine Tools, Robots, Automation Systems Manufacturers' Association's (UCIMU) official evaluation, further demonstrating its leadership in Italy's industrial sector.

Apple is currently facing turbulent times, with mounting market criticism focusing on its lack of product innovation, lagging development in generative AI (GenAI), and executive personnel changes. As these issues come to light, discussions have emerged about whether Apple should consider appointing a new CEO to replace Tim Cook.

As artificial intelligence increasingly converges with robotics, humanoid machines are moving beyond the realm of science fiction and into the spotlight of global technology and investment. Taiwan officially launched its National AI Robotics Alliance on July 22, 2025, a collaborative platform aimed at uniting the island's industrial strengths and establishing a presence on the global robotics stage.

Taiwan faces a punishing 32% reciprocal tariff rate—far exceeding South Korea's 25% and Japan's 15%—as negotiations intensify. The stakes couldn't be higher: with Section 232 potentially targeting semiconductors and TSMC considering a massive US$165 billion expansion in US operations, Taiwan risks losing both its top talent and critical industrial assets.

Apple has released a technical report detailing its 2025 Apple Intelligence language models, providing insight into the architecture of its on-device and cloud-based systems, as well as its approach to data sourcing and multilingual optimization. The company underscores that all data used for training its AI models was obtained legally and in accordance with web crawling protocols.

The future of humanoid robots looks promising, though short-term development still requires careful cultivation. Techman Robot chief operating officer Scott Huang points out that collaborative robots are the nearest equivalent. For example, while humanoid robots have eyes installed on their heads, Techman has already integrated vision systems into robotic arms. However, widespread adoption faces two major bottlenecks: cost and intelligence.

Taiwan's export orders for advanced process semiconductors and AI servers continued to perform well in June 2025, despite ongoing uncertainties with US trade policy and geopolitical risks.

The US has announced two major trade agreements with the Philippines and Indonesia, signaling a shift in tariff structures and deeper bilateral cooperation in defense and commerce.

On July 22, Dixon Technologies reported strong financial results for the first quarter of fiscal year 2025, driven largely by its fast-growing Mobile and Electronics Manufacturing Services (EMS) division. The company posted a net income of INR2.25 billion (approx. US$26.06 million), marking a 68% year-over-year increase, while revenue surged 95% to INR128.4 billion for the three-month period ending June 2025.