Tighter US export controls on advanced artificial intelligence chips are accelerating China's push to develop domestic chip technologies and expand its semiconductor supply chain, according to recent research. The shift is contributing to structural changes in the global AI chip market.
As 2026 begins, demand for fan motors remains strong. On top of continued cooling needs driven by cloud servers, new fan upgrade and increased usage requirements are emerging across the edge computing segment. AI PCs are driving more dual-fan designs, while automotive and industrial control sectors are also expanding their fan usage. The motor driver IC opportunities behind these trends are expected to become a major development focus for many Taiwanese analog chip makers in 2026. Weltrend Semiconductor, Global Mixed-mode Technology (GMT), and Anpec Electronics are all expected to see stable support for their operations this year.
As the global semiconductor industry pushes forward with advanced processes, heterogeneous integration, and cutting-edge packaging, competition now extends beyond process nodes to include material stability and equipment performance. Recently, China's development in high-performance carbon fiber has drawn attention from semiconductor equipment makers and advanced manufacturing supply chains.
While the recent announcement that the US will lower tariffs on Taiwanese exports from 20% to 15% was welcomed by officials in Taipei as a diplomatic milestone, the reaction within the semiconductor supply chain has been more measured.
The Global Electronics Association's latest "2026 Electronics Industry Trend Forecast" highlights critical challenges and shifts that will impact the sector over the next few years. Chief among these are energy infrastructure constraints that are throttling AI expansion, a move toward strategic interdependence in regional supply chains, and advancements in packaging technologies that are transforming industry dynamics. These developments signal substantial changes in investment approaches, geopolitical relations, and manufacturing policies worldwide.
The Taiwanese passive components industry continued to experience a wave of price increases. Magnetic component manufacturer LinkCom pointed out that since magnetic components primarily use iron powder cores as raw materials, supplemented with minimal amounts of copper wire, their current costs are relatively less affected by metal price fluctuations.
SEALSQ Corp, a developer of semiconductors and post-quantum technology solutions, announced on January 21, 2026, that it has signed a non-binding Memorandum of Understanding (MoU) with the Government of Gujarat and Kaynes SemiCon Private Limited, a subsidiary of Kaynes Technology India Limited. The agreement outlines plans to develop India's first Secure Semiconductor Design, Test, and Personalization Center focused on post-quantum cryptography technologies.
Price increases for resistors are spreading across the passive components industry. After reported hikes by Taiwan-based market leader Yageo and supplier Formosan Rubber, Walsin Technology has notified customers that it will raise prices for chip resistors starting February 1, 2026, citing rising costs and shifting supply-demand conditions.
Alibaba is reportedly planning to spin off its chip unit, T-Head Semiconductor, and pursue an initial public offering (IPO) to capitalize on the current surge in Chinese chipmaker listings.
ASE Group's co-packaged optics (CPO) strategy is close to complete. In addition to launching advanced packaging solutions that integrate optical engines (OE) and application-specific integrated circuits (ASICs), its subsidiary Universal Scientific Industrial (USI) is also expanding in optical communications. USI recently announced that it has completed the acquisition of a controlling stake in Chengdu-based EugenLight Technologies.
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.
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