Taiwan's 2026 central government budget has stalled in the Legislative Yuan amid partisan gridlock and the ruling party's loss of a parliamentary majority, raising concerns over funding for the nation's most critical science and technology programs. Premier Jung-tai Cho urged lawmakers to accelerate the budget review, warning that prolonged delays could disrupt major R&D subsidies, semiconductor

Competitive pricing from the "red supply chain" has taken a toll on the panel market. In response, Arlitech Electronic Corporation stated that it is transforming its sales structure. Benefiting from its two major product lines—protection & energy storage components and semiconductors—revenue contributions from networking and consumer electronics have grown significantly, turning operations from a loss to profit in the third quarter of 2025. The company is optimistic about 2026 revenue growth.

ASIC server shipment growth momentum in 2026 is expected to surpass that of Nvidia-led GPU servers, with Google's TPU servers accounting for the largest shipment volume. Inventec, one of the key suppliers, is optimistic about the 2026 server market, projecting double-digit annual shipment growth for ASIC servers.

China's biggest planned consolidation in domestic computing power has collapsed, jolting the sector. Hygon Information Technology and Dawning Information Industry Co. (Sugon) announced on December 9, 2025, that they were scrapping a merger and restructuring plan that had been under preparation for more than six months.

Despite US President Donald Trump's decision to permit the export of Nvidia Corporation's advanced H200 chips to China, reports indicate that Beijing might enforce limitations on their use as part of China's ongoing strategy to boost domestic semiconductor self-sufficiency. Chinese authorities remain cautious while evaluating how these imports fit within national technology goals.

Taiwan is moving to cement its position in the emerging global quantum technology supply chain, with the National Science and Technology Council (NSTC) outlining a strategy to build a full ecosystem—from components to systems and applications—powered by the nation's semiconductor and ICT strengths.

OpenAI has reportedly initiated a "code red" in response to increasing competition and decelerating growth, temporarily halting projects such as advertising and Sora for eight weeks to concentrate on enhancing ChatGPT. This strategic pivot reveals internal conflicts regarding the company's development priorities.

ODM giant Compal reported November 2025 revenue of NT$62.968 billion (approx. US$2 billion), up 1.69% month-over-month but down 20.96% year-over-year. The cumulative revenue for the first 11 months reached NT$691.548 billion, a decline of 18.27% compared to last year. Compal stated that its fourth quarter shipment performance aligns with previous forecasts: PC shipments are expected to slightly decrease, while non-PC server shipments will grow.

US President Donald Trump has announced that Nvidia's H200 will be allowed to return to the Chinese market after Jensen Huang's lobbying efforts. Nvidia is expected to resume securing revenue from China.

Tantalum capacitor manufacturers have recently announced price increases. Nichidenbo General Manager Yao Kuo Yu stated that the company is expected to benefit from the low-cost inventory effect. With the global AI server market growing, both the number of capacitors and their required capacitance are increasing, supporting long-term growth momentum for the company in 2025. However, memory shortages have become a recent industry concern, and it remains important to monitor whether this could further depress the already weak consumer market.

AMD has brought in former AWS infrastructure executive Arvind Balakumar to lead engineering for its Helios AI server-rack platform, strengthening its effort to challenge Nvidia's lead in AI infrastructure. AWS confirmed his departure.