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Jan 16
Research Insight: Taiwanese network vendors face mounting cost pressures from memory shortages
The surge in artificial intelligence (AI) applications has pushed cloud service providers to increase capital expenditures on data centers, prompting major memory manufacturers to shift production towards high-margin, high-performance products such as HBM and DDR5. This strategic realignment has led to a sharp reduction in the supply of niche memory types, especially those used in network communication devices, exacerbating price hikes and supply shortages that are expected to impact Taiwanese vendors through the first half of 2026.

Eutelsat, the satellite operator backed by the French and British governments, announced this week that it has placed an additional order for 340 next-generation OneWeb satellites with Airbus Defence and Space. Combined with a previous order of 100 satellites placed in December 2024, the total procurement now stands at 440 low-Earth-orbit (LEO) satellites, with deliveries expected to begin in late 2026.

Despite supply-chain pressure and memory shortages, the global smartphone market remained resilient in 2025, supported by strong demand for high-end models, foldable devices, and early upgrade cycles driven by expectations of future price increases.
Despite significant jumps in memory costs threatening smartphone affordability, Oppo has chosen to enhance rather than downgrade its latest A6 mid- to low-end models. The company retained standard memory sizes while improving battery capacity, display quality, and other key features, aiming to boost value for consumers.
Realme, once an independent smartphone brand, will be reintegrated as a sub-brand under Oppo in a strategic move to enhance competitive positioning. This realignment will see Oppo managing three main brands: Oppo, Realme, and OnePlus, each targeting distinct market segments.
Taiwan's telecom market continued gradual growth in 2025 despite high penetration rates, with the top three operators—Chunghwa Telecom (CHT), Taiwan Mobile (TWM), and Far EasTone Telecommunications (FET)—all delivering better-than-expected financial results.
Global smartphone shipments increased by 2% year-over-year in 2025, marking the second consecutive year of growth, according to Counterpoint Research. The growth was driven by strong adoption of AI smartphones and rising demand for high-end and 5G devices in emerging markets.
Google is reportedly planning to move the New Product Introduction (NPI) process for its high-end Pixel smartphones to Vietnam, a step that could mark a major shift in the tech giant's supply chain strategy, though export controls from Beijing may slow implementation, according to Nikkei Asia.

Taiwanese prosecutors have issued an arrest warrant for OnePlus founder and CEO Pete Lau, alleging the Chinese smartphone maker illegally recruited more than 70 engineers in Taiwan as authorities step up enforcement against unapproved hiring by mainland technology firms.

Motorola delivered strong smartphone sales in North America and Latin America in 2025, and looks to sustain momentum in 2026 by leveraging product innovation, AI integration, and cross-industry alliances. The company also plans to intensify operations across the Americas and Asia-Pacific markets.
Motorola announced three new smartphone models—edge 70, g57, and g86 Power—in Taiwan on January 12, highlighting a breakthrough in silicon-carbon (SiC) battery technology. The edge 70 features a 4,800mAh SiC battery that reduces its weight to 159g and thickness to just 5.99mm, making it the thinnest smartphone on the market equipped with three 50MP cameras.
Market sources say Xiaomi is expanding its in-house XRing chip lineup. Beyond developing the next-generation XRing O2 on TSMC's N3P process, the company also plans to extend these processors into "non-smartphone" products to further raise its level of self-reliance.