Jensen Huang, the CEO of the world's most valuable chipmaker, departed Taiwan for Houston tonight on Monday with a clear message for the tech world: The AI race is accelerating, and NVIDIA intends to keep its lead by "running as fast as we can".

Microsoft reported better-than-expected revenue and profit for its fiscal second quarter 2026, but concerns linger over slowing cloud growth. Despite expanding capital expenditure (capex), Azure's core business showed a decline in growth, raising questions about Microsoft's competitive edge in the AI race.

Human information intake relies heavily on vision. With the accelerated development of AI, augmented reality (AR), and spatial computing technologies, smart glasses are evolving beyond wearable gadgets to become a core interface for the next generation of human-machine interaction. These interactions can naturally integrate information, AI assistant functions, sensing, and interaction into the user's field of view, eliminating reliance on handheld devices or touch controls.

AR glasses are no longer newcomers to the tech industry, but their development remains constrained by high costs. On January 30, 2026, Kinko Optical held the opening ceremony for its AR/VR/MR R&D center at the Tai Yuen Hi-Tech Industrial Park in Zhubei City. Chairman Ching-Chi Chen stated that the center's equipment investment totals roughly NT$400–500 million (US$12.7–15.8 million), with an initial NT$300 million focusing on AR waveguide and optical engine technologies. The company secured R&D projects with US clients in 2025 and plans to start mass production in 2027, then shifting** large-scale manufacturing to its Taichung facility.

ByteDance has formally laid out its internal strategic focus for the next phase. At an internal meeting at the start of 2026, ByteDance CEO Liang Rubo stated that AI is hitting a new peak. The most critical short-term objective is the AI assistant ecosystem centered on Doubao and its overseas version, Dola.

AI startup Anthropic has introduced a new AI tool called Cowork that can automatically perform tasks across multiple applications, sparking significant attention within Microsoft. CEO Satya Nadella personally tested the related agent tools and urged internal teams to accelerate their AI agent strategies.

AI computing demand is increasing the need for thermal management. To optimize space efficiency in data centers, server cooling is shifting from traditional air cooling to liquid cooling, bringing a new wave of high-growth revenue opportunities for thermal solution companies. Leading Taiwanese thermal module makers Asia Vital Components (AVC) and Auras Technology's revenues jumped as they expanded from PCs and smartphones into server cooling. AVC also benefits from server components like enclosures and quick connectors, with year-over-year growth approaching triple digits.

German industrial giant Merck KGaA announced the appointment of Benjamin Hein as a member of the executive board and CEO of its electronics business unit, effective May 1, 2026. Following extensive global experience within the group, Hein will return to the electronics division from the company's headquarters in Germany.

Taiwan-based CviLux Corp announced on January 30, 2026, that, following a board resolution, it will publicly acquire up to 5,191,000 shares of Cystek Electronics, representing approximately 15% of its total issued shares. The public tender offer period runs from February 3, 2026, to March 10, 2026, and will proceed in accordance with relevant legal procedures.

Below are the most-read DIGITIMES stories from the week of January 16 – February 1, 2026.

India's finance ministry on February 1, 2026, unveiled the Union Budget for 2026–27, placing electronics and technology manufacturing at the heart of its growth strategy, with fresh funding for semiconductors, electronics components, and AI-linked infrastructure aimed at strengthening supply chains and boosting India's global manufacturing competitiveness.