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Feb 12
Taiwan ODMs split in early 2026 as business transition takes hold

Taiwan's leading original design manufacturers (ODMs) are entering 2026 at different stages of transition, as efforts to expand into AI servers and automotive electronics intersect with seasonal softness and shifting demand in legacy businesses. January 2026 results from Pegatron and Compal Electronics illustrate how the two companies are navigating that shift with contrasting near-term outcomes.

Amazon Web Services' (AWS) Trainium 3 servers, slated for mass production in the second quarter of 2026, have sharply reduced their planned use of liquid cooling, supply chain sources say, reversing an earlier 50:50 air‑to‑liquid split to roughly 90% air‑cooled and 10% liquid or less as production nears. This change could slow broader adoption of liquid cooling in AI server fleets.
As global efforts accelerate the development of home healthcare in a bid to alleviate resource pressures on frontline medical institutions, home care is set to become a core component of future healthcare systems. In response to this clear market trend, Taiwan is focusing on leveraging its existing ICT strengths alongside its healthcare system advantages to tap into new industry growth momentum.
Anthropic has hired Oxford philosopher Amanda Askell to teach its flagship model Claude ethical behavior, a move that reframes the company's competition with other AI labs as a contest over trust and governance rather than solely technical prowess.
Minister of the National Science and Technology Council (NSTC) Cheng-wen Wu has recently sparked a firestorm across Taiwan's academic community. His blunt critique of long-standing structural problems—punctuated by provocative phrases such as "very shameful" and "despised"—quickly ignited debate over whether Taiwan's research system has become overly dependent on metrics, entrenched in factionalism, and driven by incentives that prioritize quantity over meaningful impact.
Foxconn Technology Group held its 2026 All-Foxconn Sports Games on February 12, drawing 17,000 employees and family members and more than 30,000 participants in total. Chairman Young Liu announced that the group's 2025 revenue set a record above NT$8 trillion (US$254.4 billion).
Lenovo said surging memory prices are likely to weigh on global PC and smartphone unit demand in 2026, prompting the company to double down on diversified sourcing, premium product mix and dynamic pricing to protect margins, even as AI becomes its fastest-growing revenue engine.
US Ambassador Jamieson Greer oversaw the signing of a comprehensive Agreement on Reciprocal Trade between the US and Taiwan on February 12, 2026. The agreement, reached under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the US (TECRO), is designed to eliminate tariff and non-tariff barriers while enhancing the resilience of high-technology supply chains.
Generative AI is crossing a critical threshold, shifting from an assistive tool to a system capable of directly assuming work. Early in 2026, this shift became visible almost simultaneously in Silicon Valley and Hangzhou. In the US, Anthropic enabled executable plug-ins for Claude, turning large language models into task-orchestrating AI agents and jolting the software industry. In China, a Hangzhou-based AI startup triggered a parallel shift by pushing AI directly into corporate accounting and displacing manual bookkeeping workflows.

As geopolitical dynamics shift, Singapore has emerged as a focal point for Taiwanese and international investment, underpinned by its stable financial system and neutral political stance. The city-state offers distinct advantages for established companies, startups, and mobile talent, though it maintains rigorous standards for entry and operation.

Robotic end effectors, particularly dexterous hands, have become a critical bottleneck in the commercial deployment of humanoid robots. US start-up Psyonic is addressing this gap with a plug-and-play robotic hand designed for humanoids as well as industrial robotic platforms.
Since the generative AI boom of late 2022, the sector has seen fresh disruption in 2025 and 2026, with startups DeepSeek and Anthropic PBC's Claude Cowork driving waves of change that industry insiders say are altering competitive dynamics and market expectations.