Global smartphone shipments are set to shrink sharply in 2026 as soaring memory and core component prices hit the market, but Samsung Electronics is moving in the opposite direction. Rather than passing costs fully on to consumers like some rivals, Samsung plans to keep shipment volume steady through the Galaxy S26, Galaxy Z Fold 8, and Galaxy A series, and could even retake the No. 1 spot in global smartphone shipments.

China is setting out a five-year industrial strategy centred on artificial intelligence (AI), semiconductors, 6G, robotics and advanced manufacturing, seeking to strengthen the country's manufacturing base while turning emerging technologies into new growth engines.

As strong AI demand continues to soak up semiconductor capacity, some ICs and passive components are seeing shortages and longer lead times. Qisda's display maker Data Image has stepped up policy-driven inventory buildup, with some industrial control products now carrying supply lead times of as long as one year and materials for the first and second quarters of 2027 already secured in advance.

P-Duke Technology, a manufacturer of specialized niche power supplies, said during its earnings call on August 26 that it remains optimistic about its outlook for second-half and full-year 2026.

The European Chamber of Commerce Taiwan said on August 27 that Siemens Taiwan president and chief executive Frank Grunert will become its chairperson on September 1, 2026. The decision was approved unanimously by the chamber's council and puts a senior Taiwan-based executive in charge of the group representing European business interests on the island.

HP reported record revenue in the third quarter of fiscal 2026, but PC shipments declined as higher average selling prices weighed on unit volume. The company said the same pattern is affecting other PC brands and expects it to become more visible in the second half of the year as component costs stay elevated.

Synopsys, a leading electronic design automation (EDA) company, reported stronger-than-expected fiscal third-quarter results for the 2026 fiscal year (3QFY26) as the AI boom drove higher spending on chips and infrastructure. The company said revenue rose 42.4% year-over-year to US$2.48 billion, topping market expectations of US$2.44 billion, and it raised its full-year revenue and profit outlook.

Hon Hai Technology Group, better known as Foxconn, is expanding its global manufacturing footprint through new land acquisitions, factory development, and capacity upgrades as demand for artificial intelligence infrastructure accelerates and electronics supply chains become more geographically distributed.

China is placing artificial intelligence, industrial software and open-source ecosystems at the centre of its next phase of manufacturing digitalisation, seeking to strengthen domestic software capabilities while extending platforms such as Huawei's HarmonyOS (HMOS) across consumer and industrial devices.

Samsung Electronics' first tri-fold handset of 2025, the Galaxy Z TriFold, has repeatedly sold out, but with global shipments of only about 30,000 units, it functioned more as a technology showcase. A second-generation model is expected in the second half of 2027, with thinner designs, durability, and mass production capability as the next focus.

The 2026 Taiwan Sustainability Summit opened in Taipei on August 25, bringing together government representatives, industry leaders, and experts from Taiwan and Germany to focus on how digital twin and industrial AI can accelerate net-zero deployment in manufacturing, buildings, energy management, and rail transport. The summit closed with a five-point joint declaration, outlining Taiwan's next 10-year development blueprint.

Morgan Stanley said TSMC's advanced packaging allocation is expected to shift in 2027, as processor demand tied to agentic AI lifts AMD's CoWoS usage and reduces Nvidia's share. The report, cited by Wccftech, attributed the shift to TSMC's rising capacity amid expanding industry-wide demand.

Bioteq is increasing output at its Yilan Science Park plant, a move that could affect supply chains across Asia, Africa, and the Americas. As the company shifts more products and upgrades equipment, it is aiming to improve efficiency, manage geopolitics, and support demand in developing markets.

Foxconn is accelerating the geographic diversification of its global manufacturing capacity as AI server demand surges and supply-chain regionalization continues, with 2026 capex expected to rise more than 30% year on year. In China, however, the company is not mounting large-scale capacity expansion in step with the U.S., Mexico, India, and Vietnam. Instead, it is shifting investment toward equipment restructuring, precision manufacturing upgrades, and higher-end production capabilities at existing plants.

India is emerging as a new battleground for South Korea's two electronics giants, with Samsung Electronics using the country as a production and supply-chain base for AI data center cooling equipment and LG Electronics investing hundreds of billions of won to build a third home appliance plant. But whether India's fast growth and huge population will translate into real earnings remains the biggest test.

The Chinese National Federation of Industries (CNFI), an industrial association representing the majority of manufacturing businesses in Taiwan, has released its 2026 white paper, putting forward seven proposals aimed at building a resilient national economic security line amid the current trade and economic climate. In response, the National Development Council (NDC) said the white paper's core demands closely align with the government's current policy direction.

Luxshare Precision posted a 40.16% rise in first-half 2026 revenue as rapid growth in automotive electronics, communications and data-centre products reduced its reliance on consumer electronics.

Taiwan's AI server supply chain is stepping up investment in China, but expansion is concentrated in components rather than full-system assembly. By contrast, Taiwan's notebook PC production in China is mostly flat as the industry shifts to Southeast Asia and other non-China locations.

Global demand for AI and high-performance computing (HPC) has lifted investment returns for Taiwan-listed companies in China, with Foxconn continuing to lead the pack. According to CRIF, Foxconn's total China investment returns in the first half of 2026 reached NT$117.6 billion (US$3.7 billion).

Kaynes Technology India and BOSGAME have signed a strategic memorandum of understanding to support BOSGAME's entry and expansion in India. The deal highlights how global hardware brands are increasingly looking to India for design, manufacturing, and customer support as the country's electronics ecosystem matures.

AI server demand and the continued regionalisation of global supply chains are keeping Foxconn's capital spending on an upward trajectory in 2026, with the company maintaining its target for full-year capex growth of more than 30%.

The memory industry is undergoing a structural shift as AI demand surges, and Etron Technology chairman Nicky Lu said the sector's boom will stretch beyond 2027, with shortages likely lasting through 2028 and possibly into 2030. He said supply is tightening further as AI and edge computing create rigid demand, pushing the supply chain to focus on higher-value applications.

The United Arab Emirates is considering backing a proposed 500 MW AI data center in Akita prefecture, Japan, after local officials met with the UAE ambassador on Aug. 19. The project, which could begin operations as early as 2030, is being positioned as one of Japan's largest data center developments if it moves ahead.

Notebook brands that rushed into Southeast Asia for manufacturing are moving production back to China, as the cost gap remains too wide and the impact of substitute tariffs has proved limited, according to supply chain sources. The shift is expected to affect Taiwan original device manufacturers (ODMs) serving new customer lines in Vietnam and Thailand.

India has announced an INR625 billion (US$6.53 billion) Mobile Phone Manufacturing Scheme aimed at moving the country's electronics industry beyond large-scale assembly and toward higher domestic value addition, indigenous product design, and locally owned intellectual property.