As artificial intelligence (AI) transitions from cloud-centric operations to edge devices, the hardware that powers AI is undergoing significant change. While graphics processing units (GPUs) have long dominated both AI training and deployment, neural processing units (NPUs) are now emerging as a viable alternative, particularly for edge applications, according to Jeffrey Chen, vice president of product marketing at Kneron. Chen elaborated on these evolving trends at the recent Human-Machine Co-Creation New Era annual summit.

AI data centers are seeing rapidly increasing demand for HPC and big data processing. The shift from traditional copper wiring to fiber optics boosts data transfer rates while lowering power consumption. Gallium arsenide (GaAs) epitaxy maker Visual Photonics Epitaxy Co. (VPEC) stated that while the smartphone market in 2026 is expected to remain flat or show slight growth, rising transmission efficiency requirements in AI data centers will drive planned equipment purchases and expanded capacity, making data centers the company's main growth driver for 2026.

The artificial intelligence industry is reaching a critical inflection point. After two years of rapid advancement in generative AI capabilities, the technology is now transitioning from answering questions to autonomously completing complex tasks—a shift that experts warn will fundamentally reshape entire industries and workforce structures.

As AI compute hubs expand rapidly, data center power demand is rising fast. AI servers are being redesigned across cooling, power and resilience, especially in HVDC, modular power systems and backup architectures.

Vietnam's parliament has approved sweeping amendments to its geology and minerals law that tighten state control over the country's rare earth resources, reaffirm a ban on ore exports, and introduce new limits that effectively restrict shipments of refined materials in a bid to build a domestic processing industry.

Amid the global AI surge, Lens Technology acquired PMG International to gain a 95.1% stake in Yuans Technology, an Nvidia-certified supplier specializing in liquid cooling and server racks. This strategic move enhances Lens's capabilities in AI server hardware, complementing its consumer electronics expertise.

OpenAI has received fresh backing from Disney as the AI developer faces pressure to strengthen monetization and expand commercial partnerships. The investment arrives just as OpenAI rolls out GPT-5.2, a next-generation model aimed at reinforcing its competitive edge amid escalating rivalry across the generative AI market.

Foxconn signed a development agreement with the Kaohsiung city government on December 12 to advance the Y15 mixed-use project along the city's MRT Yellow Line. The company will invest NT$15.9 billion (US$509 million) to build a new flagship headquarters in the Asia New Bay Area as it deepens its long-term commitments in southern Taiwan.

Joinsoon Electronics Manufacturing, a manufacturer specializing in connectors and cable assemblies, reported progress in transforming its business model, driven by demand in AI servers and advancements in high-speed transmission standards. These factors are expected to be key growth contributors by 2026.

Amazon Web Services (AWS) has signed a long-term framework agreement with the Telangana government to invest US$7 billion in expanding its cloud data-center infrastructure in Hyderabad over the next 14 years. The deal was finalized during the Telangana Rising Global Summit held on December 8–9 and announced on Thursday.

J&B International has initiated operations at its new Vietnam factory, shifting the site from Binh Phuoc to Dong Nai Province. CEO Clive Hsiao said the land purchase and plant design are complete, with environmental reviews underway. Construction is expected to start soon, targeting completion by end-2026 and trial production in first quarter 2027.