As the fourth quarter begins, IT panel demand has entered its usual seasonal lull, with shipments expected to fall from third-quarter levels. Notebook panel prices are forecasted to soften slightly as manufacturers brace for a challenging 2026 while anticipating a potential rebound driven by AI-enabled PCs.

Acoustics specialist Merry Electronics delivered solid operational results in the third quarter of 2025, with revenue reaching a nearly three-year high for the same period. This reflects the gradual benefits of its diversified portfolio in acoustics and medical products.

Smartwatch and wearable maker Garmin is set to establish its first factory in Southeast Asia, located in Thailand, to produce smartwatches and other electronic products.

Micro LED supplier PlayNitride reported a trough in operations for the second quarter of 2025, posting an after-tax net loss of NT$370 million (US$12 million) due to foreign exchange valuation losses. The company acknowledged that its performance in the first half of 2025 fell short of expectations but expects shipments to improve quarter-over-quarter through the third quarter and fourth quarter.

Following multiple rounds of negotiation and the successful "Trump–Xi summit," US–China trade tensions have eased, reflecting a cautiously resilient yet competitive relationship. Nonetheless, Washington's stringent technology sanctions and containment policies toward Beijing remain firmly in place. Consequently, Taiwanese firms operating between the two powers must navigate carefully to avoid falling under US extraterritorial jurisdiction.

The recent meeting between US President Donald Trump and his Chinese counterpart Xi Jinping has eased tensions between the two countries, de-escalating rare earth export controls and soybean trade barriers. It remains uncertain whether Trump will come up with other threats when dealing with China. But for Taiwan, the speculation about the US sacrificing the island nation in return for better ties with China has not materialized. Neither has the US taken concrete steps to impose semiconductor tariffs under Section 232 of the Trade Expansion Act. Taiwan's manufacturing sector may gain momentum over the next two months if geopolitical and economic conditions remain stable.

Asia Optical announced its third-quarter 2025 financial results, reporting consolidated revenue of NT$7.15 billion (US$232.35 million), up 4% from the previous quarter and 5% year-over-year. Gross profit rose 14% quarter-over-quarter and 7% year-over-year to NT$1.57 billion, driven by sustained revenue growth that boosted gross margin. Operating income hit a new high for the period at NT$878 million, increasing 30% from the previous quarter and 16% year-over-year. Net profit attributable to the owners of the company reached NT$520 million.

Production disruptions at Dutch power device maker Nexperia have drawn speculation about a supply chain shift where Taiwan-based makers may benefit. But Advanced Power Electronics (APEC) president CS Chang said it would be difficult for Taiwanese makers to penetrate Nexperia's automotive customer base.

Leading polarizer BenQ Materials is maintaining a cautious outlook for the display sector in the fourth quarter of 2025 and first half of 2026, due to a sluggish TV market and the impact of the upcoming Lunar New Year holiday, according to Chairman Dr. ZC Chen during the company's latest earnings call.

The global AI race enters a new phase in 2025, shifting focus from advanced cloud algorithms and high-performance computing chips to the coldest yet most critical physical constraint: electricity. Analysis firm Goldman Sachs highlights that power provision is fast becoming the "physical limit" for AI development.

Samsung Electro-Mechanics has reported robust financial results for the third quarter of 2025 and projects sustained strong demand for multilayer ceramic capacitors (MLCCs) in 2026, driven by AI servers and automotive electronics. The company aims to achieve double-digit growth next year.

Samsung Electronics posted strong overall results for the third quarter of 2025, driven primarily by its semiconductor and mobile businesses. However, the home appliance and TV divisions showed weaker performance, with profits estimated at a mere KRW300 billion (US$209 million). To break through this slump, Samsung's Device eXperience (DX) division acting head Tae-moon Roh is aiming to replicate the mobile segment's successful AI and hyperconnectivity strategies in home appliances and TVs.

Samsung Electronics saw strong results from its mobile division for the third quarter of 2025, driven by robust sales of its new foldable models, the Galaxy Z Fold7 and Flip7. The Mobile eXperience (MX) and Network (NW) business units reported operating profit growth of nearly 30% year-over-year.

Acoustoelectric component maker Primax Electronics has unveiled its operational strategy in the ongoing AI trend at its latest earnings call on October 28, 2025, with chairman Yung-chung Pan making his first public appearance to outline the company's dual focus on growth and sustainability following a 2024-2025 strategy review.

With newly added production capacity in place, growth in AI product shipments, and continued average selling price (ASP) increases, Lite-On achieved strong profits in the third quarter of 2025, and operations in 2026 are expected to reach double-digit growth. Director Anson Chiu stated that AI-related products accounted for more than 20% of revenue in the third quarter, exceeding the company's prior annual plans. In 2026, the AI-related revenue share is expected to double to 40%, with nearly double the capacity added in Vietnam, Kaohsiung, and the US.

Acoustoelectric component maker Primax Electronics maintained steady operations in the third quarter of 2025, fueled by strong shipments of automotive and AIoT products that sustained momentum from the first half of the year.

Liquid cooling adoption in ASIC servers is poised to accelerate significantly in 2026, driven largely by cloud service providers (CSPs) such as Google and Microsoft increasing their use of this technology. According to cooling module maker Microloops, liquid cooling contributed only single-digit percentages of its revenue in 2025 but expects substantial growth next year due to expanded liquid cooling deployment in ASIC servers among CSP customers.

Nvidia plans to launch its Vera Rubin architecture AI servers in 2026, significantly increasing the share of liquid cooling solutions. In response, heat dissipation manufacturers are aggressively expanding production capacity during this critical growth period. Industry sources note that Nvidia's new platform will drive much higher demand for key liquid cooling components such as quick connectors and cold plates.

To accelerate AI adoption across industries, the IPO Forum is partnering with multinational companies and local supply chains to launch a "Trusted AI Accelerator" platform in Taiwan. Terence Liao, general manager of Dell Taiwan, who serves as IPO Forum chairman, emphasized that since the emergence of generative AI, the industry has undergone extensive trial and error over the past two years, making 2025 a critical turning point. Liao expressed hope that the accelerator platform will leverage the strength of major players to empower smaller enterprises and enhance the resilience of Taiwan's industrial ecosystem.

Facing accelerated AI server upgrades and soaring power consumption, Giga Computing is promoting next-generation cooling technology and one-stop data center solutions, with South Korea identified as a key market. The company recently participated in the Korea Electronics Show (KES 2025) to highlight its competitive edge to potential local customers.

High-frequency communication component manufacturer Universal Microwave Technology (UMT) has announced its operating results for the third quarter of 2025. The company reported NT$484 million (US$15.7 million) in revenue for the quarter and a net income of NT$88 million. The consolidated revenue for the first three quarters totaled NT$1.62 billion. Overall revenue has shown a steady month-by-month increase, indicating that the company has recovered from the early-quarter revenue dip caused by delayed shipments due to customer testing.

The escalating US-China trade war has led to major shifts in the shipping industry. As part of rising tensions, China recently announced rare earth export controls, while the US threatened to impose additional high tariffs on Chinese goods, and both countries have also imposed reciprocal maritime port fees since October 14.

The global electronics industry faces dual challenges of supply chain restructuring and geopolitical risks. To help member companies expand internationally and reduce trade barrier risks, the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) has been actively promoting so-called overseas science parks since Young Liu, chairman of the Foxconn group, took over as TEEMA chairman.

Electronic component distributor WFE Technology is set to list on the Taipei Exchange (TPEx) in mid-to-late November 2025, positioning itself to benefit from rising cybersecurity and environmental monitoring standards for data centers and AI servers.

Micron is joining the LPCAMM2 race dominated by Samsung and SK Hynix in the next-generation AI notebook memory market. Following the high-bandwidth memory (HBM) surge, the AI notebook semiconductor sector is evolving into a three-way competition.