Samsung Electronics' gallium nitride (GaN) foundry effort has reportedly suffered another setback, with high-temperature reliability failures potentially pushing mass production into 2027. The delay follows earlier problems securing device customers and abandoning a government-backed project, underscoring the technical and strategic challenges of entering a market already served by established rivals.

Doosan Group's agreement to acquire a controlling stake in SK Siltron for KRW2.3 trillion (US$1.6 billion) will expand its semiconductor footprint from materials and testing into wafer manufacturing, while giving SK Group additional resources for its AI semiconductor strategy. The deal also highlights how rising AI demand is reshaping wafer valuations, investment priorities, and industry consolidation.

AI-driven chip shortages, rising memory costs and intensifying foundry competition dominated the technology sector, with Intel reviving DDR4 platforms, Qualcomm raising prices, Samsung challenging TSMC at 2nm and Beijing accelerating domestic chip adoption. Below are the most-read DIGITIMES stories from the week of July 27- August 2, 2026.

Samsung Electro-Mechanics used its second-quarter earnings call to signal that its bet on AI infrastructure is paying off and about to get bigger, pointing to a run of long-term supply contracts, higher capital spending, and a newly formalized glass substrate venture as evidence that demand from hyperscalers and chipmakers is outrunning what the industry can supply.

Flexium Interconnect said its second-quarter operating loss narrowed from the previous quarter as new flexible printed circuit products entered mass production for a US customer's latest notebooks, while smart glasses and AI server products began small-volume shipments.

C.C.P. Contact Probes said it has expanded its presence in the AI sector through a joint development project with a major semiconductor company covering microelectromechanical systems probes and probe-cleaning sheets. The products will be introduced into customer designs after development is completed.

FICG's advanced manufacturing subsidiary PRO3C signed a memorandum of understanding (MOU) with AME Elite Consortium Berhad, a Malaysia-listed integrated industrial space solutions provider. FICG also signed an MOU with JTC, Singapore's government agency for industrial master planning and infrastructure development.

Surging demand for AI servers is tightening global capacity for high-end passive components, prompting customers to once again pursue long-term supply agreements (LTSAs) as they seek to secure future deliveries.

Microcontroller unit (MCU) supplier Holtek Semiconductor has confirmed a broad price increase across its entire microcontroller portfolio, marking its first company-wide adjustment since the COVID-19 pandemic.

Taiwanese IC design house Realtek said on July 29 that it expects all of its product lines to grow year-on-year in 2026, even as tight supply in memory, substrates, and mature-node manufacturing continues to weigh on costs. The company said pricing actions, product mix improvements, and demand in automotive, networking, and AI-related applications should help offset margin pressure.