As 2026 begins, DIGITIMES has conducted in-depth analyses of sectors within the electronics industry. The current landscape theme can be described as "one core, two keys, three drivers." The core, semiconductors, has two keys —the satellite industry and memory— and will be driven by three factors: AI servers, defense, and green energy. These areas will be critical to watch in 2026.

South Korea's four major conglomerates, Samsung Group, LG Group, SK Group, and Hyundai Motor Group have unanimously identified artificial intelligence transformation (AX) as a core focus in their New Year organizational restructuring and personnel deployments. South Korean conglomerates have no longer viewed AI merely as a new business but have instead embedded AI across end-to-end processes including R&D, manufacturing, finance, and operations. Representative groups such as Samsung, LG, SK, and Hyundai Motor have all carried out 2026 organizational restructuring and personnel adjustments toward the end of 2025, simultaneously deploying AX-related organizations and technical talent to accelerate their AX initiatives in the New Year.

ByteDance is reportedly preparing to invest about CNY100 billion (US$14.3 billion) in AI chips in 2026, primarily purchasing AI processors from Nvidia. This planned spending exceeds the estimated CNY85 billion for 2025 but remains contingent on whether Nvidia receives approval to sell its H200 chips in the China market, with budget adjustments possible.

Facing stiff competition in the domestic market, Chinese technology companies are accelerating their push into international markets, with artificial intelligence (AI) firms spearheading efforts in Singapore. According to The Straits Times, these companies plan to introduce a wide range of AI products, including robots, large language models (LLMs), and cloud solutions by 2026 to tap into Singapore's growing technology sector.

Europe's defense technology sector is experiencing rapid growth as the ongoing Russia-Ukraine war and rising geopolitical tensions drive increased investment in AI-driven defense solutions. The UK and Germany have emerged as the primary hubs for startups focused on advanced military technologies, signaling a shift in defense priorities across the continent.

The biggest recent news in AI chip development is Nvidia's non-exclusive technology licensing agreement with Groq. Nvidia invested US$20 billion to acquire Groq's technology license and onboard its core engineering team.

As frontier AI models reach practical usability, competition is shifting from incremental improvements in model performance to a broader battle over distribution, application integration, and cost-effective deployment, according to DIGITIMES analyst Luke Lin. Developers are now racing to secure access to end users via devices and platforms, marking a new phase in AI competition that is expected to last for the next several years.

As AI adoption accelerates, global and US economies in 2025 have been increasingly driven by technology companies' investments in AI infrastructure. Analysts warn that next year's AI server demand will depend on whether deployed AI can generate revenue, distinguishing "good AI" from "bad AI" with unclear monetization.

Taiwan's aging population and declining birth rates have led to an increasingly pressing labor shortage, a major structural issue uncovered through a National Taiwan University (NTU) study commissioned by the National Development Council (NDC) on how demographic shifts impact policies. Under this backdrop, industry experts see high potential for the robotics sector, but cost reduction and improved intelligence remain key challenges for widespread adoption.

On December 30, Chinese AI company Z.ai launched a share sale to raise HK$4.35 billion (approx. US$560 million), aiming to become the first large language model (LLM) developer listed in Hong Kong amid a tech IPO surge, with a scheduled listing for January 8, 2026. Meanwhile, Z.ai has recently launched its latest open-source model, GLM-4.7, signaling a shift toward enterprise-focused AI and broader global adoption. As the company prepares for a 2026 IPO, the release highlights the growing influence of independent developers in a market increasingly shaped by hyperscale competitors and ecosystem distribution.

Under ongoing geopolitical risks and rising tariff barriers, Foxconn Technology Group's smartphone assembler FIH Mobile plans to shift part of its new product introduction (NPI) operations from China to Vietnam starting in 2026, sources say. This move marks a significant step as the industry adapts to heightened supply chain resilience demands amid US-China tech tensions.