The recent Taiwan-US tariff agreement, establishing a reciprocal 15% tariff rate under the most-favored-nation (MFN) principle without stacking, marks a significant development for Taiwan's traditional manufacturing sectors, particularly the machinery industry. The resolution has been welcomed as a move toward restoring fairer competition with key rivals like Japan and South Korea, although concerns about exchange rate volatility persist.

"Physical AI"—the fusion of artificial intelligence with machines that move, sense, and act in the real world—emerged as a defining theme at CES 2026, where Chinese robotics companies made a particularly forceful showing. Dozens of humanoid robots were on display, underscoring how quickly China is moving to translate AI advances into physical form.

Tesla aims to shorten its in-house AI chip design cycle to one generation every nine months, targeting rivals Nvidia and AMD. However, industry analysts highlight automotive safety verification and software stability as the biggest bottlenecks.

Following the conclusion of the Taiwan-US tariff framework, industry attention centers on how Foxconn (Hon Hai Precision), a leading electronics manufacturer, will recalibrate its operations and strategy. Despite Foxconn's lack of an official statement, experts note that the company typically maintains a cautious stance on major trade policy changes, awaiting comprehensive details and execution guidelines before announcing its corporate responses.

Server ODM Quanta Computer is aggressively expanding production, with the expectation that capacity will double again by the end of 2026. Quanta's Executive Vice President and Quanta Cloud Technology (QCT) General Manager Mike Yang said that not only will manufacturing capacity increase, but the engineering staff responsible for R&D will also expand from nearly 3,000 people to an additional 500-800 employees.

Industry speculation about collaboration between optics manufacturers and semiconductor companies to bolster their silicon photonics (SiPh) capabilities is gaining ground. Following Largan Technology chairman Enping Lin's comments during a recent earnings call, Asia Optical chairman I-Jen Lai confirmed that Asia Optical is also a potential participant in this trend.

Wistron posted a record-high consolidated revenue of NT$2.19 trillion (approx. US$67.63 billion) for full-year 2025, according to its unaudited financial results announced on January 16. The company reported gross profit of NT$134.02 billion for 2025, while operating profit came in at NT$78.56 billion, income before tax totaled NT$76.26 billion, and net income after tax reached NT$27.401 billion.

Acer and Lenovo are optimistic about India's consumer electronics sector as the global market slows due to rising memory prices.

Touch panel manufacturer Young Fast Optoelectronics, which has shifted focus toward electromechanical products in recent years, plans to vertically integrate its optoelectronics division and introduce two new business segments by 2026. The company expects to boost growth by adding full assembly for gaming machines and general displays, as well as medium-to-large electronic paper (EPD) module lamination, with visible results anticipated by late first quarter 2026.

Humanoid robots and embodied intelligence were huge at CES 2026. Dexterous hands are a key component that determines the upper limits of a robot's manipulation capabilities. Despite significant progress in recent years in terms of degrees of freedom and control performance, several challenges remain to be addressed.

Meta Green Cooling (MGC) is making a comprehensive push into the AI liquid cooling sector, leveraging its unique full-spectrum capabilities. MGC chairman James Chen noted that, unlike competitors, MGC integrates mechanical design, electromechanical systems, thermal management, monitoring, data center design, and maintenance services under one roof. The company posted a remarkable 215% revenue growth in 2025 and expects similar expansion in 2026 as it capitalizes on rising liquid cooling demand.

Tight memory supply has driven market prices sharply higher, prompting industry expectations that 2026 PC and smartphone end-demand will face downward pressure. However, TSMC stated that fluctuations in component costs like memory have a limited impact and remains optimistic about product lines such as high-end smartphones and PCs.

The petrochemical industry has been stuck in an intensely competitive red ocean market. The Chinese government has begun promoting measures to curb excessive internal competition, and the cycle of low-price competition is expected to ease in 2026. Formosa Chemicals & Fibre Corporation (FCFC) launched a streamlining plan in the second half of 2025 and is actively shifting toward the compound plastics market. To enter higher-end markets, FCFC plans to complete 5N hydrogen purification equipment by 2027 to secure a foothold in the electronics industry supply chain, while continuing research and development in silicon carbide to align with advanced chip thermal management technologies.

Quanta Computer held its year-end banquet on the evening of January 15, 2026, during which company chairman Barry Lam highlighted three major waves that hit 2025. He named the tariff war, the all-out battle over artificial intelligence (AI) applications, and sweeping changes in AI server design as key challenges. Despite this, Quanta was still able to meet all customer requirements, with both revenue and profits reaching record highs. He added that the AI boom will not be limited to 2026, but is expected to continue surging over the next two to three years.

Following the National Science and Technology Council's (NSTC) announcement of the quantum computing mainframe construction project, attention has focused on whether Taiwan will use a quantum computer developed by Academia Sinica or procure one from abroad. Sources reveal that the National Center for High-Performance Computing (NCHC) under the National Applied Research Laboratories (NIAR) has launched an international tender. If IBM Quantum bids and wins, the deal hinges on whether the US government permits export, as commercial quantum computers are currently banned from overseas sales.

Unlike previous CES editions that focused on full humanoid robot systems, CES 2026 highlighted the standalone importance of dexterous hands. As the core interface for human–machine interaction, dexterous hands set the ceiling for robotic performance and represent the "last mile" in humanoid robot capability.

The long-discussed Taiwan-US tariff negotiations have finally concluded, agreeing on US$500 billion investment and reciprocal tariffs aligned with those of the EU, Japan, and South Korea without stacking. These terms match disclosures from US sources.

While CES 2025 focused on robots' mobility, humanoid robots at the 2026 event displayed impressive improvements. They showed off folding paper pinwheels, folding clothes, playing ping-pong, and performing four-hand piano duets. This innovation depends on dexterous hand technology, the determining factor for whether robots can be commercialized. The number of exhibitors specializing in dexterous hands has noticeably increased this year, revealing three clear trends.

Taiwan's Executive Yuan announced early Thursday that it had secured preferential tariff treatment from the United States on semiconductors and related products, marking a significant breakthrough in bilateral trade negotiations amid intensifying geopolitical and supply-chain pressures.

The rapid evolution of robots with stable gait and agile manipulation—spotlighted at CES 2026—signals that robots integrated into daily life are moving from vision to reality. Seizing this momentum, Taiwan is launching a national, mission-driven initiative to accelerate smart robot research, industry development, and talent cultivation.

Hon Hai Precision Industry (Foxconn) announced on January 14 that the 2026 Taiwan Foxconn Ladies Golf Tournament, which it sponsors, has officially been elevated to a main tour event on the Japan Ladies Professional Golf Association (JLPGA) tour. Japan's SoftBank Group is also participating as a sponsor for the first time, highlighting that the collaboration between the two companies extends beyond AI and robotics into brand and corporate culture integration.

Delta Electronics India is set to significantly expand its manufacturing footprint in India, reflecting the company's confidence in the country's growing semiconductor and electronics ecosystem and its alignment with the government's 'Make in India' initiative. The move builds on Delta's longstanding presence in India, where the company has invested in R&D, industrial automation, and smart manufacturing solutions over the past decade.

Syntec Technology has reported a 29% increase in consolidated revenue for 2025, reaching NT$13.96 billion (approx. US$441 million), up 29% from the previous year, reflecting steady expansion amid rising demand for intelligent manufacturing solutions. The company attributed this growth to strong sales in the Chinese market and a shift toward high-end product offerings.

Aurotek Corp. reported historic revenue figures for December 2025 and the full year, driven by growth in smart manufacturing, automation equipment, and robotics. The company recorded consolidated revenue of NT$285 million (US$9.01 million) in December, a 50.62% month-over-month increase and a 42.42% year-over-year increase. Full-year revenue reached NT$2.496 billion, up 50.12% compared to 2024.