Backlight module maker Coretronic believes that consumer market momentum in the fourth quarter of 2025 remains weak due to ongoing concerns over tariffs and inflation, both of which create uncertainty in the supply chain and demand. The PC market demand has also not picked up because AI PCs have yet to materialize. Additionally, continuous layoffs at major US tech companies have raised concerns that business PC demand will decline.
Microsoft has announced the launch of its new MAI Superintelligence Team, led by AI chief Mustafa Suleyman, marking a significant step in the company's long-term AI strategy. The initiative, now hiring more than 100 positions across multiple US cities and London, UK, is widely viewed as a direct response to Meta Platforms Inc.'s growing ambitions in the superintelligence space.
As GPU counts in AI servers soar, rack power consumption has reached record highs, straining data-center energy systems. In response, major European and US power semiconductor makers, including STMicroelectronics (STM) and Onsemi, are rolling out advanced power-management technologies to enhance efficiency, reduce heat, and lower overall system costs.
As Taiwan's machinery sector enters its 80th year in 2025, the industry is under growing strain from tariffs and currency volatility, forces beyond its control. With regional competition heating up, local manufacturers are reassessing how to stay competitive and sustain growth.
AI-related products have become a key growth engine for Taiwan's economy, being a major driver of Taiwan's exports in 2024 and boosting investment in 2025. However, as companies continue to increase their AI investments by hundreds of billions or even trillions of US dollars annually, revenues have yet to rise proportionally. Experts recommend closely monitoring US CSP trends, as any reduction in procurement could directly impact Taiwan's tech exports.
The rise of artificial intelligence has sharply increased the demand for computing power, making electricity consumption and grid bottlenecks a central concern for data centers. With power density per rack rising, traditional AC-based infrastructure faces limitations, prompting a search for more efficient energy solutions. High-voltage direct current (HVDC) architectures paired with solid-state transformers (SST) are emerging as leading options for next-generation power management, although commercialization faces significant hurdles.
Electronic components and solutions provider Sinbon Electronics has faced significant pressure on its growth momentum in 2025 amid global economic volatility and shifting US policies. The company's green energy business, including the solar power segment, has declined sharply, halting a 15-year streak of revenue growth. However, Sinbon chairman Joseph Wang said that with new product lines and AI industry applications ramping up production, Sinbon expects to return to positive growth in 2026. A wave of major orders starting in the fourth quarter of 2026 is set to drive even stronger expansion in 2027.
US president Donald Trump predicts that within two years, the US will control 40-50% of the global chip market. He claims that major Taiwanese companies are establishing plants in the US because of his tariffs policy. Amid speculation that companies are fleeing Taiwan, Taiwanese government officials have repeatedly maintained that the makers are expanding overseas, demonstrating to the world their manufacturing capabilities.
Foxconn is accelerating its digital health strategy by collaborating across medical systems, long-term care institutions, and other industries to create a seamless chain. The strategy will focus on connecting clinical care, long-term care, and home healthcare. Foxconn has signed memorandums of understanding with Nobel Medical Group and formed partnerships with Mackay Memorial Hospital and Shiangbao Longterm Care Group to pilot integrated smart long-term care models. It aims to drive industry convergence through evidence-based and scalable deployments, helping Taiwan establish a comprehensive digital health ecosystem spanning inpatient to outpatient settings.
China is accelerating its drive for technological self-sufficiency by subsidizing electricity costs for data centers that use domestic AI chips, even though they consume far more power than Nvidia's. The initiative seeks to ease financial pressure on major tech firms such as ByteDance, Alibaba, and Tencent after Beijing's ban on Nvidia's processors, while advancing the nation's local semiconductor ecosystem.
WT Microelectronics expects strong momentum from AI-driven data centers to continue through 2026, citing surging global demand for computing and communications products.
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