Kinpo Group held its annual year-end party on January 21, during which company chairman Jerry Hsu highlighted that US tariff policies in early 2025 had temporarily stalled the global consumer market. With Kinpo and AcBel Polytech's main product lines closely tied to consumer electronics, the company's operations faced significant pressure in the first half of 2025. However, as the market gradually absorbed the policy uncertainties, and with emerging demand from artificial intelligence (AI), memory modules, fuel cells, data centers, and server power supplies, operations began to show signs of recovery in the second half.

New Delhi has raised the basic customs duty (BCD) on imported flat panel displays to 20% while lowering duties on open cells and key display components to 5%, in a policy move aimed at strengthening domestic electronics manufacturing and correcting an inverted duty structure. India's Finance Ministry announced the changes as part of India's broader "Make in India" initiative, according to The Times of India, Hindu Business Line, and Z Business.

Kinpo Group's subsidiary AcBel Polytech officially launched a 1MW high-voltage direct current (HVDC) power system solution designed specifically for AI data centers during the group's annual celebration on January 21, 2026. The move reflects an increasing strategic focus on AI-related power products, which accounted for around 20% of AcBel's total revenue in 2025. The company aims to raise this share to 30% in 2026, indicating that AI data center power systems are becoming a core growth driver in AcBel's business portfolio.

Pan-International has outlined a significant strategic pivot following its joint acquisition with Foxconn Technology Group of Belgian axial flux motor manufacturer Magnax, indicating a move beyond its core wiring harness and precision components business into the humanoid robotics sector. The acquisition addresses a crucial gap in power system technology and is positioned as a foundational step toward Pan-International's broader ambitions in the robotics industry.

Taiwan's National Science and Technology Council (NSTC) convened its 19th committee meeting on January 21, 2026, bringing together senior executives from leading tech companies to address mounting concerns over renewable energy availability and pricing. TSMC senior vice president Lora Ho and Pegatron chairman Tzu-hsien Tung attended the session, where industry leaders pressed the government on critical energy policy issues.

Foxconn Industrial Internet (FII), a subsidiary of Foxconn (Hon Hai Precision), outlined ambitious plans to reposition itself as a key manufacturing platform within the global artificial intelligence (AI) industry chain during its 2025 year-end review and 2026 outlook employee mobilization meeting.

The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) held its annual year-end banquet on the evening of January 21, 2026, as industry leaders and senior government officials gathered to assess the challenges facing Taiwan's export-driven economy amid shifting global political and economic conditions.

Taiwan and the US have reached an agreement on a reciprocal 15% tariff for machine tools, eliminating stacked tariffs, a move anticipated to invigorate the sector in early 2026 after a challenging 2025. Industry leaders project increased investment from end customers, particularly in equipment procurement and advanced manufacturing technologies, driven by heightened semiconductor investments in the US market.

A global shortage of memory chips and rising prices are creating challenges in the electronics supply chain. Ray Chen, chairman of leading original design manufacturer (ODM) Compal Electronics, said that tight supply and price hikes in the memory market are expected to continue through 2027 and will have a significant impact on the global electronics industry.

At a year-end banquet on January 22, 2026, Kinpo Group president Rock Hsu paid tribute to Compal Electronics chairman Ray Chen, who is celebrating 50 years with the group ahead of Compal's 42nd anniversary in 2026. Hsu described Chen not only as a trusted business partner but also as a lifelong companion, highlighting Chen's exceptional dedication and leadership throughout decades of service.

The market for high-end quartz frequency control components is experiencing increased demand as AI infrastructure expands and automotive technologies advance. Growth in 2026 is expected to come largely from AI data centers and high-speed optical transmission modules requiring precise, low-jitter oscillators. At the same time, automotive applications such as smart cockpits and advanced driver-assistance systems (ADAS) are contributing to volume and pricing gains.

Lite-On Technology's board has approved a public cash tender offer at NT$54 (US$1.71) per share to acquire common shares of U-Media. The minimum acquisition target is 20% of U-Media's issued shares, with a maximum of 100%. A full takeover would cost approximately NT$2.03 billion.

Compal Electronics is anticipating a significant surge in AI server shipments beginning in 2026, following a projected revenue decline in 2025, according to chairman Ray Chen at the company's annual shareholder event on January 22, 2025. He described 2025 as an operational low point before the company's expected rapid recovery.

Despite the impact of US tariffs under President Donald Trump, Taiwanese companies continue to view China and Vietnam as vital manufacturing and investment destinations due to their cost advantages and integrated supply chains. While investment in China has declined, these countries remain central to Taiwan's global strategy.

At the World Economic Forum, Nvidia CEO Jensen Huang highlighted energy and power systems as the backbone of AI infrastructure. This perspective has shifted market attention to companies like Delta Electronics, whose strategic focus on power solutions and data center efficiency is now driving its rise in Taiwan's market and the broader AI ecosystem.

Taiwan's Qisda Corporation has announced a strategic investment of approximately NT$3.2 billion (US$101 million) to acquire a 35% stake in Eastech Holdings, a leading global manufacturer of audiovisual speaker systems. The move marks Qisda's entry into the high-value acoustic industry chain, aiming to enhance its audiovisual integration capabilities and strengthen its presence in smart manufacturing and high-end imaging markets.

Taiwan and the US have agreed to reduce tariffs and grant Taiwan most-favored-nation status under Section 232 for semiconductors and related products. However, a major issue has arisen regarding the financing for Taiwan's investment commitments. The US Fact Sheet cites Taiwan's credit guarantee financing as "at least" US$250 billion, while the official Memorandum of Understanding (MOU) between the two specifies an "upper limit" of US$250 billion. This inconsistency has led to questions about the exact nature of Taiwan's financial obligations and how they will be implemented in the future.

At the Davos 2026, US President Donald Trump stated that he secured US$18 trillion in investment commitments within his first year back in office, significantly exceeding the US$1 trillion gained during former President Joe Biden's entire four-year term. Trump expects the figure to approach US$20 trillion soon.

Pan-International Industrial has decisively moved into the humanoid robotics and high-performance motor market through a joint EUR32 million (US$37.24 million) investment with Foxconn Technology Group to acquire a 52% controlling stake in Belgian startup Magnax BV. This expansion marks Pan-International's strategic transition from traditional wiring harness manufacturing to a supplier of advanced critical components, positioning it at the forefront of next-generation power system technologies.

Taiwan's air cargo is on track to reach a record high by 2026, propelled by strong demand for AI servers and advanced semiconductors primarily exported to the US. According to Taiwan's Civil Aviation Administration, while flights from China and Hong Kong continue to lag due to lingering pandemic effects and policy restrictions, routes linking Taiwan with the Middle East and North America have recovered robustly, exceeding pre-pandemic levels.

As businesses increasingly adopt an "Out of China" approach due to geopolitical pressures, BizLink Group's strategic choice to establish operations in Malaysia early on offers insights into Southeast Asia's evolving role in manufacturing. While many Taiwanese firms initially expanded into China, BizLink began with a modest three-person office in Malaysia. This decision has paid dividends as the country transitioned from a low-cost labor hub into a significant manufacturing center driven by the rise of AI, according to BizLink Group chairman Roger Liang.

Despite uncertain macroeconomic trends and rising memory prices with constrained supply, PC brands, suppliers, and research firms remain pessimistic about 2026 PC demand. However, competition in the AI PC segment is intensifying rapidly.

On January 21, 2026, GlobalWafers chairwoman Doris Hsu spoke to the media about the recent US-Taiwan tariff agreement, which lowers Taiwan's reciprocal tariffs to 15% without stacking most-favored-nation (MFN) rates. This makes Taiwan the first country to secure tariff relief under Section 232. Both sides also plan to expand supply chain investment cooperation. Hsu called this a very positive outcome for Taiwan's overall industry and said it has eased market concerns.

GlobalWafers chairman Doris Hsu told the media on January 21, 2026, that the company's global expansion plans are starting to pay off, with subsidiaries in Niigata and Utsunomiya, Japan, as well as Denmark, all hitting record revenues in 2025. Niche products like gallium nitride (GaN) stood out for their strong performance. Hsu also outlined GlobalWafers' 2026 strategy and shared her outlook on market conditions.

Electronics manufacturing services (EMS) providers are sharpening their competitive positions around AI-era infrastructure, shifting attention from cyclical end markets to longer-cycle platform builds for cloud, networking, and data centers. Recent company updates from Celestica, Sanmina, Jabil, and Flex show a common playbook: move up the value chain, standardize repeatable system designs, and invest in power, thermal, and integration capabilities that shorten deployment times for hyperscale customers.