The global optical fiber market is shifting from a traditional telecom cycle into a new phase of structural shortage, driven by rapid AI infrastructure expansion and dense cloud data center construction. Prices and capacity are rising together as demand for fiber, a core material for data transmission, keeps climbing.

As AI server prices rise, original design manufacturers (ODMs) are hitting record revenue, but also coming under pressure on their gross margins. To defend profitability, manufacturers are cutting costs, negotiating with customers to switch from buy-sell procurement to consignment, and chasing ASIC and general-purpose server orders.

Biwin Storage Technology recently resubmitted its listing application to the Hong Kong Stock Exchange again, with Huatai Financial Holdings acting as the sole sponsor. The Chinese memory module maker has seen a rebound in profit as demand for memory continues to rise.

AAEON Technology reported sustained demand growth and a rising book-to-bill ratio, signaling stronger momentum into the second quarter and second half of 2026. The industrial PC maker expects double-digit growth for the full year, powered increasingly by artificial intelligence across its hardware and ecosystem strategy.

Market fears over Nvidia's next-generation Vera Rubin platform have eased after supply-chain sources said design issues tied to a cooling architecture change have largely been resolved. Nvidia has now confirmed a mass-production plan with ODMs and key suppliers, putting development back on track and pointing to a volume ramp from the third quarter of 2026.

Auras Technology reported record first-quarter results and said it expects revenue and profit to grow quarter by quarter in 2026, dismissing market talk that a design tweak on Nvidia's Vera Rubin server cooling system would harm its business. The cooling-module maker posted first-quarter revenue of NT$49.038 billion (approx. US$1.56 billion), up 110.17% year-over-year, gross profit of NT$14.597 billion, up 142.15%, operating profit of NT$12.019 billion, up 175.6%, and net profit after tax of NT$7.916 billion, or NT$20.17 per share.

The US has cleared around 10 Chinese companies to buy Nvidia's H200 artificial intelligence chips, but no deliveries have been made, suggesting that Washington's approval alone may not be enough to revive the company's high-end China business.

Quanta posted record revenue and earnings per share for the first quarter of 2026, but gross margin collapsed as the company absorbed costs tied to a rapid shift into high-priced GPU-based AI servers.

Hon Hai Precision Industry (Foxconn) reported first-quarter 2026 consolidated revenue of NT$2.11 trillion (approximately US$66.95 billion), up 29.68% year over year but down 19% from the fourth quarter of 2025 due to seasonal factors. Core profitability improved despite the slowdown.

Foxconn (Hon Hai) held an online investor briefing on May 14, where executives outlined that cloud and networking products accounted for nearly 50% of group revenue in the first quarter of 2026 and that AI server shipments will more than double year-over-year for 2026. The company said a shift toward consignment supply for some AI server transactions has depressed reported revenue sequentially but did not affect overall profitability and helped reduce working capital and improve capital efficiency.

Ubiqconn Technology reported consolidated revenue of NT$130 million in April 2026, down 25% month-over-month and down 20% year-over-year, and cumulative revenue for the first four months of 2026 totaled NT$678 million, a 12% decline from a year earlier. The firm said short-term revenue was affected by market demand adjustments, but ongoing product mix optimization had begun to drive structural, differentiated growth across its end markets.

A Taiwan Intellectual Property Office report released in 2026 showed that AI demand accelerated a global patent race in data center and server cooling technologies, with Inventec, Foxconn, and Quanta emerging among Taiwan's top patent holders. The report analyzed 8,449 published and announced patent families from 2015 through 2024 and found cooling-related patent families grew at a 17% compound annual growth rate over the past decade, and entered a distinct growth phase in 2022 when annual filings first exceeded 1,000.

Pegatron announced its first-quarter 2026 financial results on May 13, with profit down more than 60% compared with the same period a year earlier, while earnings per share (EPS) hit its lowest level for the same period in nearly seven years.

Asus Computer Inc. reported first-quarter 2026 brand revenue of NT$194.051 billion (US$6.19 billion), a record high and a 44% increase year on year, driven by surging AI server demand and stable notebook shipments. The company's co-CEOs, S.Y. Hsu and Samson Hu, raised the full-year server revenue growth target to "at least double," up from a prior 50% to 100% range.

Despite weakness in the personal computer market, surging DDR5 memory prices, and tight CPU supply, ASMedia Technology posted record results in the first quarter of 2026, underscoring early gains from its shift beyond PC connectivity chips into custom silicon, artificial intelligence infrastructure, and automotive electronics.

SoftBank is committing JPY1 trillion (US$6.34 billion) through fiscal 2030 to make artificial intelligence, data centers, and energy infrastructure its next growth engines, according to company materials as well as Bloomberg and Nikkei reports.

Cisco Systems reported record fiscal third-quarter results for fiscal 2026, surpassing its own financial guidance, driven by triple-digit order growth from hyperscale cloud providers. The company significantly raised its full-year outlook for AI-related infrastructure orders. It announced a major restructuring plan to reallocate human and financial resources toward high-growth technologies, including proprietary silicon and optics.

Analysts gave Alibaba Group Holding's latest results a cautious reception, warning that surging artificial intelligence (AI) investments are pressuring profitability even as cloud growth accelerates. While investors welcomed strong AI-related momentum and rising cloud revenue, several research firms said heavy infrastructure spending and weaker-than-expected earnings underscored the mounting costs of Alibaba's ambitious AI expansion.

Tencent Holdings Limited reported a 9% year-over-year increase in total revenue to CNY196 billion (approx. US$28.86 billion) for the first quarter of 2026, driven by a strategic pivot toward artificial intelligence (AI) and stabilized growth in its core gaming and advertising segments. Company executives highlighted the quarter as a turning point, noting "significant initial progress on our new AI products" while continuing to integrate machine learning across existing business lines.

Foxconn will hold its first-quarter 2026 earnings briefing on May 14, with investors expecting detailed updates on AI server demand, the commercialization of co-packaged optics, and the strategic significance of recent alliances with Mitsubishi Electric and ElectroMobility Poland. The company's record first-quarter revenue has heightened expectations for a dense briefing.

Microloops reported record revenue and profit for the first quarter of 2026, driven by sustained demand for AI server cooling products that accounted for 60% of sales, the company announced. The thermal module maker said the strong AI-related mix lifted scale and profitability even as revenue slowed at the start of the second quarter.

Inventec expects both artificial intelligence (AI) servers and general-purpose servers to see growth in 2026, with company president Jack Tsai noting that orders for the latter are expected to grow through 2028. The company also plans to double capital expenditure in 2026, focusing on expanding production sites to meet customer demand.

As AI server orders surge, system assembly makers are finding that more business does not always mean better profits. High-priced GPUs and soaring memory costs are pushing up revenue without lifting manufacturing fees at the same pace, leaving original design manufacturers (ODMs) facing lower gross margins as assembly orders grow.

ASPEED Technology has continued to show strong revenue momentum in recent years, supported by structural changes in global data center infrastructure and the rapid expansion of AI server deployments.