As the global generative AI race enters a more competitive phase, the direction of China's large-model development is no longer shaped by a single company. Instead, it is increasingly influenced by a small group of figures with strong research credentials, engineering expertise, and industry clout.
Luxshare Precision Industry said it has moved to terminate an agreement to buy an India-based business asset package from Wingtech Technology after the transfer was blocked by legal restrictions, including seizures and freezes, escalating a cross-border dispute that both sides have now taken to arbitration in Singapore.
The US Commerce Department's Bureau of Industry and Security (BIS) has shifted its license review policy for exports of certain advanced computing chips to China and Macau from a "presumption of denial" to a case-by-case review, provided exporters meet new certification and testing requirements.
Meta is accelerating its internal resource realignment by cutting about 10% of staff at Reality Labs, while launching a new division called Meta Compute to oversee global AI computing and data center expansion. CEO Mark Zuckerberg aims to drive the company toward its "Superintelligence" strategic goal through more focused management and capital structure.
Formosa Plastics Group (FPG) announced preliminary consolidated financial results for 2025 on January 12, reporting a combined net loss after tax of approximately NT$1.093 billion (US$34.56 million), a reversal from a net profit of NT$8.458 billion in 2024. Among its four major companies, Nan Ya Plastics and Formosa Petrochemical Corporation (FPCC) posted profit growth, while Formosa Plastics Corporation (FPC) recorded a wider loss, and Formosa Chemicals & Fibre Corporation (FCFC) posted its first-ever loss since listing.
Microsoft's AI for Good Lab has revealed that Chinese AI startup DeepSeek's free, open-source generative model is rapidly gaining adoption in developing countries, contributing to a notable rise in global AI usage while prompting geopolitical and information security concerns.
Darfon is actively expanding into the energy and high-end niche application markets. Its subsidiary focused on new energy solutions, Darfon Energy Tech, announced on January 12, 2026, that its board approved a cash acquisition of up to NT$540 million (approx. US$17.1 million) for 100% equity in Hitron. This move reportedly aims to integrate both companies' power supply technology strengths and further expand their footprint in edge AI, industrial control, and medical application markets.
At CES 2026, Nvidia revealed Vera Rubin, which significantly increases server power consumption, underscoring the urgent need for improved power delivery and energy efficiency. This surge in computing demands is driving Taiwanese microcontroller unit (MCU) manufacturers to develop advanced cooling fan solutions to meet AI server requirements.
Acer is promoting the independent development of its subsidiaries, using a multi-faceted strategy to drive group growth. Three subsidiaries under Acer's Pan-Asia operations headquarters are optimistic about their 2026 outlook, each targeting double-digit growth. Atlos will expand its AI server business; HSN will expand into multiple countries, brands, and product categories; and Acer Intelligence Space (ITS) will expand into home appliances under the Acerpure brand.
At CES 2026, Nvidia CEO Jensen Huang showcased plans for next-generation AI-native infrastructure. Aside from its Vera Rubin timeline, Huang introduced the inference context memory storage platform centered on the BlueField-4 data processing unit (DPU), which claims to be a solution to AI's memory and communication obstacles. Market estimates indicate that storage controller chips based on the BlueField architecture play a critical role, with only two companies currently positioned as main suppliers. Silicon Motion is expected to be the biggest beneficiary.
Taiwan recorded a GDP growth of over 7% in 2025, driven by an AI-fueled export surge, yet the headline growth conceals mounting pressures on traditional industries grappling with US tariffs and an intensifying domestic talent crunch.
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