Demand for green talent in Taiwan has surged to unprecedented levels. The pending implementation of carbon fees, continued growth in the green technology sector, and rising demands for net-zero emissions in global supply chains have created a massive workforce gap. Statistics show that Taiwan's green workforce shortfall neared 30,000 in 2025, marking a new record high at nearly 300% the level eight years ago. The electronics, IT, and semiconductor industries show the strongest hiring needs. AI skills have also become highly sought after, with employers favoring expertise in software engineering and R&D.
Taiwanese pneumatic components maker Chelic said it is redirecting its growth strategy toward semiconductors, liquid cooling, and robotics, as new sensing and energy management products move into customer testing with revenue contributions expected to begin in early 2026.
Taiwan's economy saw outstanding growth in 2025, emerging as an outlier not just in Asia but also worldwide. In its recently released forecast for 2026, the Institute of Economics at Academia Sinica sharply revised its estimate for GDP growth to 7.41% for 2025, up 4.48pp from its previous estimate of 2.93%. Although growth in 2026 is likely to slow down due to the high baseline in 2025, AI-related industries will continue to prop up external demand and investments in Taiwan.
Rising global investment in artificial intelligence is accelerating data center construction. This is intensifying demand for power, cooling, and energy storage equipment, reinforcing reliance on Chinese-made components even as governments push to diversify supply chains.
As AI workloads intensify and data centre architectures evolve, optical communications vendors are positioning co-packaged optics (CPO) and silicon photonics (SiPh) as core mid- to long-term growth markets. LuxNet expects 800G products to surpass 400G as the market mainstream in 2026, with 1.6T products entering initial shipments and supporting growth over the next two to three years. TrueLight is moving into the AI high-performance computing (HPC) supply chain via continuous-wave (CW) laser foundry services and expects the foundry revenue share in 2026 to exceed 2025 levels.
Connector maker U.D. Electronic revealed at an investor briefing on March 23, 2025, that it expects significant growth momentum in 2026, driven by the commissioning of its Vietnam manufacturing plant and the integration of Linkpower Electronics. The company highlighted that AI servers and edge computing are pushing transmission speed upgrades, with products supporting speeds above 2.5G projected to exceed 30% of sales next year.
FIC Group reported strong demand from its optical communication customers amid ongoing supply shortages. The company's new Johor Bahru, Malaysia production facility recently passed customer certification. It is slated to begin mass production in the first quarter of 2026. FIC also announced plans for continued capacity expansion at the Johor plant throughout 2026 while exploring semiconductor precision manufacturing growth opportunities.
Taiwan's Ministry of Economic Affairs (MOEA) announced on December 23, 2025, that export orders from the US reached US$28.45 billion in November 2025, up 12.5% sequentially and 56.1% year-over-year. Orders for information and communications products, focused on artificial intelligence (AI) servers, rose by US$6.43 billion, marking a sharp year-over-year increase of 117.7%.
In mid-December 2025, a China-based assembler for Apple was reportedly targeted in a cyberattack, potentially compromising production-line information linked to the tech giant's operations. This situation has raised concerns among customers regarding supply stability and cybersecurity risks.
British Petroleum (BP) subsidiary Castrol announced plans to apply its expertise in fluid science and thermal management toward advancing liquid cooling and power solutions for Taiwan's AI infrastructure. The initiative aims to bolster Taiwan's competitive position in the global AI computing sector by developing high-performance data center environments for future AI applications.
XING Mobility announced it will showcase advancements in electric vehicles (EVs), energy storage systems, and AI data center backup batteries at the 2026 Consumer Electronics Show (CES 2026) in the US. The presentation will focus on a decade of development in immersive cooling technology.
Chinsan, a Taiwanese aluminum capacitor manufacturer, held an in-person investor briefing on December 22, 2025. General manager Ching-Hsin Chiang said that growth momentum in the first half of 2026 will be driven mainly by the cloud and server markets, which are expected to show strong positive trends extending into 2027. In contrast, consumer electronics, industrial automation, and new energy sectors are forecasted to remain flat or slow down.
Taiwan's major automation equipment controller maker Syntec Technology has begun construction of its second-phase factory in Malaysia, representing a strategic investment of over NT$600 million (approx. US$19 million). The new facility aims to serve as the firm's key overseas manufacturing and operation hub, supporting markets including India, Turkey, ASEAN, and the US.
Taiwan's Hon Hai Precision Industry Co, better known as Foxconn, is rapidly expanding its manufacturing footprint in India, hiring tens of thousands of workers at a new iPhone plant near Bengaluru and laying the groundwork for what sources familiar with the project describe as a factory-city model similar to those it previously built in China, according to the Economic Times.
Taiwan's leading motherboard manufacturers—AsusTek, GIGABYTE, Micro-Star International (MSI), and ASRock—have navigated a turbulent global economic environment in 2025 marked by inflation, currency swings, and escalating US-China tensions. While the consumer electronics sector contends with rising costs and shifting demand, these companies have leveraged AI server growth to bolster financial performance amid a shrinking PC DIY market.
Taiwan's Central Bank has sharply revised its economic growth forecast for 2025 to 7.31% from the 4.55% projected in September, citing the absence of US semiconductor tariffs under Section 232 and a stronger-than-expected surge in AI demand driving export momentum.
Taiwan's Amtran Technology is reshaping its growth trajectory, pivoting from scale-driven contract manufacturing to a profit-focused strategy built around high-value products—a shift now clearly reflected in its financial performance and product mix.
Eternal Precision Mechanics, a subsidiary of LCY Technology (Eternal Materials), has quietly become one of the most dominant players in the global semiconductor equipment supply chain.
Shihlin Electric is experiencing robust growth driven by expanding AI computing power needs and accelerated investment in power infrastructure. At HCT Logistics' smart electric vehicle (EV) launch event on December 18, 2025, Shihlin Electric showcased its commercial electric logistics fleet developed with CMC, alongside an integrated solar, charging, and energy storage power system.
Humanoid robots continue to advance, with XPeng recently showcasing its new-generation humanoid robot IRON, whose lifelike posture has sparked widespread industry discussion. Shortly after, Tesla released a video of its Optimus robot running, featuring more natural and agile strides compared to earlier versions. These developments from two leading players highlight that the next wave of humanoid robot drive technology upgrades will become a fiercely contested battleground.
As the AI wave propels smart robots into the spotlight, Taiwanese companies are betting on developing advanced AI "brains" rather than competing directly with Chinese firms on humanoid robot hardware. Industry leaders emphasize Taiwan's strengths in the ICT and semiconductor sectors as key to capturing value behind the physical devices.
Singapore and China have signed 27 memorandums of understanding (MOUs) aimed at enhancing bilateral cooperation in areas such as finance, the digital economy, green development, and technology. The agreements were finalized during the Singapore-China Joint Council for Bilateral Cooperation (JCBC) meeting held in Chongqing, co-chaired by Singapore's Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong and China's Vice Premier Ding Xuexiang.
Interest in drones and robotics has continued to build across markets in 2025, yet not all automotive electronics manufacturers are convinced the moment has arrived.
Amid sustained high demand for AI computing power and accelerated deployment of data center expansions and edge AI applications, Powertech expressed an optimistic outlook for its 2026 operations during its December 16, 2025, earnings call. The company plans to continue targeting high-growth product lines and markets by expanding its portfolio based on core technologies while concentrating resources on high-value and fast-growing customers.
