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.
Notebook brands Acer and Asus posted strong January revenue, defying the usual seasonal slowdown. The supply chain, however, remains cautious — the momentum, sources warn, is short-lived. When inventories of key components are drawn down by the second quarter of 2026, and price increases are passed on to end consumers, the real test will begin. As Warren Buffett famously put it: "Only when the tide goes out do you discover who's been swimming naked."
Weblink International Inc. reported consolidated revenue of NT$2.897 billion (about US$92 million) in January 2026, a 39.86% year-on-year increase and a historic monthly high driven by accelerated AI application adoption across multiple sectors.
After posting record revenue in 2025, Foxconn held its annual company sports carnival on February 12, continuing for a second consecutive year to replace the traditional year-end party banquet with a large-scale athletic event. Ahead of the event, Foxconn chairman Young Liu said 2026 "will definitely be much better" than 2025.
The global foundry industry is undergoing a structural shift, and it is emerging first in mature process nodes once widely considered oversupplied. SMIC stated on February 11 that its performance in the first quarter of 2025 defied seasonality. Utilization held steady from the prior quarter, and pricing for mature nodes has begun to stabilize.
Taiwan's machinery industry posted continued export growth in January, driven by demand for AI-related electronic equipment and semiconductor-linked products, while the machine tool sector remains under pressure, according to industry associations.
Elon Musk has reorganized AI startup xAI following its merger with SpaceX, citing the need for faster execution as the company scales. The overhaul comes amid the departure of multiple co-founders and senior staff.
Robert Playter will step down as chief executive of Boston Dynamics, effective immediately, the company said Tuesday, marking the end of a tenure that spanned more than three decades at the robotics firm.
Silicon Valley's long-anticipated commercial phase for AI agents accelerated this month. The viral rise of open-source personal assistant OpenClaw and the rapid adoption of Anthropic's programming tool Claude Code signal a shift from experimental deployments to broad enterprise engagement.
Tesla CEO Elon Musk has announced the merger of xAI and SpaceX, creating a new entity valued at an astonishing US$1.25 trillion. However, some have raised concerns that this bold strategic move may prove to be a financial yoke on SpaceX, especially since, from a technical standpoint, it makes more sense to merge xAI with Tesla than with SpaceX.
As global supply chains shift from globalization toward regionalization and the "China plus one" strategy persists, Singapore's role in Southeast Asia has undergone a fundamental transformation. Once primarily a transshipment hub for trade, the city-state has evolved into a regional coordination and compliance center. Observations indicate that Taiwanese and Chinese companies are now utilizing Singapore to pursue distinctly different strategic approaches.
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