The global semiconductor industry is at an inflection point, split between those who can still shrink transistors and those who can no longer do so. US export controls and the denial of EUV lithography equipment have effectively capped China's front-end chip manufacturing at older process nodes, while Taiwan's TSMC extends its lead by layering chips vertically in three dimensions — a technique known as 3D stacking — binding the world's top AI chip designers ever more tightly to its ecosystem.
The US Commerce Department has moved to close a potential export-control loophole that may have allowed Chinese technology companies to obtain advanced AI chips, including Nvidia's Blackwell processors, through subsidiaries outside China, according to Reuters.
Nvidia chief executive Jensen Huang's pre-Computex meetings in Taipei are drawing close attention from South Korean companies seeking a bigger role in the global AI supply chain. With demand for AI infrastructure rising, their interest reflects how the next phase of AI development could shape worldwide competition, partnerships, and technology access.
MediaTek held a media event ahead of Computex, with several top executives taking part as the company highlighted progress in AI data centers and its broader "One MediaTek" strategy. The event opened with Rahul Sandil, newly appointed general manager of global marketing and communications, followed by speeches from president and COO Joe Chen, corporate vice president of the data center and compute business group Vince Hu, and vice president and general manager of the auto business Mike Chang.
Taiwan has secured preferential treatment under US Section 232 tariffs for most exports other than semiconductors after months of negotiations with Washington, but uncertainty remains over proposed semiconductor measures. With chips accounting for the bulk of Taiwan's exports to the US, Taipei is seeking tariff-free quotas and company-specific exemptions before any new duties are imposed.
Huawei's Tau Law is being framed in China as a new semiconductor principle, but its strategic value may lie beyond catching TSMC in process nodes. The real question is whether Huawei can combine LogicFolding, optical interconnects, and system-level scaling to reduce China's reliance on Nvidia.
MediaTek held a pre-Computex 2026 media event in Taipei, Taiwan, on May 29, after which president and COO Joe Chen and CFO and co-COO David Ku spoke with reporters. Ku shared his views on supply chain capacity planning as well as a range of capital market-related issues.
Taiwan-based Actron Technology expects stronger growth in its automotive semiconductor business as demand for its high-efficiency diode products has exceeded expectations amid tightening global emissions standards and resilient hybrid vehicle demand.
Below are the most-read DIGITIMES Asia stories from the week of May 25-31, 2026:
MediaTek said it expects artificial intelligence (AI) to move from centralized cloud systems into consumer devices, home servers, and new products such as AI glasses. The shift could reshape global demand for chips, data privacy, and device design, as companies race to build the next wave of AI hardware.
Skymizer said it unveiled HTX301, a decode-first accelerator chip for on-premises AI inference, at COMPUTEX 2026, to shift large-model serving away from cloud GPU racks and onto single PCIe cards that enterprises can run in their own environments. The firm announced a partnership with Taiwan's Institute for Information Industry to upgrade Taiwan's AI industry from edge AI to enterprise on-prem AI, and executives framed the product as aimed at regulated, low-latency settings such as hospitals, banks, government agencies, and factories where data must remain on-site.
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