Taiwan and the US have reached an agreement on a reciprocal 15% tariff for machine tools, eliminating stacked tariffs, a move anticipated to invigorate the sector in early 2026 after a challenging 2025. Industry leaders project increased investment from end customers, particularly in equipment procurement and advanced manufacturing technologies, driven by heightened semiconductor investments in the US market.
A global shortage of memory chips and rising prices are creating challenges in the electronics supply chain. Ray Chen, chairman of leading original design manufacturer (ODM) Compal Electronics, said that tight supply and price hikes in the memory market are expected to continue through 2027 and will have a significant impact on the global electronics industry.
At a year-end banquet on January 22, 2026, Kinpo Group president Rock Hsu paid tribute to Compal Electronics chairman Ray Chen, who is celebrating 50 years with the group ahead of Compal's 42nd anniversary in 2026. Hsu described Chen not only as a trusted business partner but also as a lifelong companion, highlighting Chen's exceptional dedication and leadership throughout decades of service.
The market for high-end quartz frequency control components is experiencing increased demand as AI infrastructure expands and automotive technologies advance. Growth in 2026 is expected to come largely from AI data centers and high-speed optical transmission modules requiring precise, low-jitter oscillators. At the same time, automotive applications such as smart cockpits and advanced driver-assistance systems (ADAS) are contributing to volume and pricing gains.
Lite-On Technology's board has approved a public cash tender offer at NT$54 (US$1.71) per share to acquire common shares of U-Media. The minimum acquisition target is 20% of U-Media's issued shares, with a maximum of 100%. A full takeover would cost approximately NT$2.03 billion.
Compal Electronics is anticipating a significant surge in AI server shipments beginning in 2026, following a projected revenue decline in 2025, according to chairman Ray Chen at the company's annual shareholder event on January 22, 2025. He described 2025 as an operational low point before the company's expected rapid recovery.
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.
Despite the impact of US tariffs under President Donald Trump, Taiwanese companies continue to view China and Vietnam as vital manufacturing and investment destinations due to their cost advantages and integrated supply chains. While investment in China has declined, these countries remain central to Taiwan's global strategy.
TikTok USDS Joint Venture LLC has been officially established to meet the requirements of the Executive Order signed by US President Donald Trump on September 25, 2025. The move aims to ensure that more than 200 million US users and 7.5 million businesses can continue using TikTok while adhering to US regulatory standards.
At the World Economic Forum, Nvidia CEO Jensen Huang highlighted energy and power systems as the backbone of AI infrastructure. This perspective has shifted market attention to companies like Delta Electronics, whose strategic focus on power solutions and data center efficiency is now driving its rise in Taiwan's market and the broader AI ecosystem.
The Tata Group will invest INR1 trillion (US$11 billion) to build a state-of-the-art Innovation City near Navi Mumbai International Airport, marking a key step in Maharashtra's plan to become a national hub for artificial intelligence, semiconductors, and Global Capability Centres (GCCs), according to ANI, Bloomberg, and Hindustan Times.
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