Taiwan's Ministry of Digital Affairs (MODA) has revealed that three applicants have submitted bids for its AI compute center BOO (build-own-operate) program, which closed on May 14, 2026. The disclosure comes as Foxconn is widely reported to be highly interested in building a large AI compute center.

Asus is accelerating its push into the server market in South Korea, leveraging its manufacturing prowess, long-term ties with major memory makers, and flexible design and supply strategies to take advantage of mass procurements in South Korea's government-led sovereign AI infrastructure initiative and GPU server roll-outs at Hyundai Motor, telecom operators, and financial institutions in the country.

Swancor Holding and RobiChip Technology announced a strategic partnership to accelerate the adoption of advanced packaging materials and heterogeneous chip system integration in robots, robot dogs, and AI-powered platforms, the firms said at the forum on robotics and circular materials hosted by the Taiwan Composite Low-Carbon Circular Alliance. The collaboration will focus on co-developing materials and high-power-density power systems to enable the deployment of next-generation robotic and drone applications.

Apple has increasingly relied on "binned" chips — processors with disabled or defective cores — to expand into lower-priced devices, according to a recent report by The Wall Street Journal. The strategy allows the company to reuse chips that would otherwise be discarded, lowering costs while broadening its product lineup.

The global map of semiconductor manufacturing is beginning to shift. For years, the market for advanced chip production was dominated almost entirely by TSMC. But the rise of artificial intelligence (AI), intensifying geopolitical tensions, and mounting pressure from Washington to secure critical supply chains are beginning to loosen that grip.

Taiwan's information and communications technology (ICT) sector has reinforced its central role in the global artificial intelligence supply chain and unveiled an overseas expansion strategy, executives said at the Taiwan Electrical and Electronic Manufacturers' Association annual members' meeting in 2026. The industry reported record output in 2025 and is advancing a "TEEMA Science Park 3.0" initiative aimed at helping companies deploy production and data infrastructure abroad to manage geopolitical risk.

Samsung Electronics and its labor union in South Korea began a new round of negotiations on May 18, days before a planned strike that could bring its chip plants to a halt. The talks are being mediated by the government, which has signaled concern about the labor action's impact on the South Korean economy, in which Samsung contributes more than 20% of its exports.

Rising global geopolitical tensions are driving up defense budgets worldwide and boosting demand for rugged computers. Getac expects rugged computer shipments to grow by a double-digit percentage in 2026, driven mainly by defense demand. Additionally, demand related to drones has increased significantly and is expected to account for 5-10% of rugged computer revenue over the next 12 months.

Taiwanese electronics firms are poised to become key suppliers for Western automakers' next-generation vehicle electronics, with a wave of RFQs expected to convert into mass-production orders from 2027. Production shifts globally could affect supply-chain localization, cybersecurity planning, and the rollout of edge-AI-enabled vehicles across markets from the US to Europe.

Global server markets may shift as DIGITIMES analyst Luke Lin says Intel's revenue gains stem largely from price rises while AMD posts stronger shipment-led growth. TSMC plans another price increase as customers prioritize capacity over cost, developments that could affect cloud providers, vendors, and data center economics worldwide.

Connector maker Lotes said it held product prices to win market share and reported record first-quarter 2026 revenue as strong server demand lifted results. The company disclosed that consolidated revenue for the first quarter reached NT$9.332 billion (US$295.12 million), gross margin was 49.55%, operating margin was 29.04%, net profit was NT$2.4 billion, and earnings per share were NT$21.72, with the server business accounting for more than 50% of total revenue for the first time.