On January 14, US President Donald Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose an immediate 25% tariff on a narrow category of advanced semiconductors, citing national security risks from heavy US reliance on foreign chip supply chains.

As China's domestic GPU developers accelerate public listings and expand both technological and capital investment, competition is shifting toward next-generation computing power. Iluvatar CoreX said it will unveil a three-generation GPU roadmap on January 26, 2026, outlining a new GPGPU architecture, cloud-based AI training and inference products, and high-performance computing infrastructure plans.

AI chip startup Cerebras Systems is reportedly in talks to raise US$1 billion in a new financing round, aiming for a valuation of up to US$22 billion, according to Bloomberg. The company plans to continue pursuing its initial public offering (IPO) as part of a broader strategy to expand its AI computing hardware and cloud services.

Market research firm Yole Group has forecasted a 43% compound annual growth rate (CAGR) for the photonic integrated circuit (PIC) sector, with co-packaged optics (CPO) module output value growing by 137% annually to reach US$8.1 billion by 2033. Against this backdrop, Taiwan's government has indicated its support for this emerging industry, with efforts underway to advance research, development, and mass production.

The US Commerce Department's Bureau of Industry and Security (BIS) has shifted its license review policy for exports of certain advanced computing chips to China and Macau from a "presumption of denial" to a case-by-case review, provided exporters meet new certification and testing requirements.

China's domestic GPU sector has entered a new phase of capitalization. Moore Threads and MetaX have listed on the STAR Market, Biren debuted on the Hong Kong Stock Exchange in early January 2026, Iluvatar CoreX completed its Hong Kong IPO, and Enflame has finished listing counseling ahead of a STAR Market filing. Within one month, five Shanghai-based GPU firms accessed public capital markets, accelerating the commercialization of China's AI chip industry.

Leading IC distributors WT Microelectronics and WPG reported strong revenue growth in 2025, fueled by robust demand from AI and data-center sectors. WT Microelectronics posted a record annual revenue of NT$1.18 trillion (approx. US$37.3 billion), up 22.8% year-over-year, while WPG neared the NT$1 trillion mark with NT$999.12 billion in sales, growing 13.47% year-over-year.

Continued capacity expansion for advanced semiconductor manufacturing processes is driving strong demand for key materials such as photoresist and quartz. Topco Scientific (TSC), a leading semiconductor materials distributor, reported December 2025 revenue of NT$6.48 billion (approx. US$205.35 million), setting a new single-month record, representing a 12.9% month-over-month and 18.9% year-over-year increase.

Nvidia and Eli Lilly and Company have announced the formation of a joint AI co-innovation lab to apply artificial intelligence to drug discovery, development, and manufacturing, as pharmaceutical companies increasingly turn to advanced computing to improve research productivity and reduce development timelines.

Nvidia said it does not require customers to make upfront payments for its H200 artificial intelligence chips. The statement pushes back against a Reuters report claiming the company had imposed unusually strict commercial terms on Chinese buyers amid regulatory uncertainty.

MediaTek recently announced its December 2025 and full-year revenue results. December revenue reached NT$51.266 billion (approx. US$1.6 billion), up 9.32% month-over-month and 22.99% year-over-year, while the full-year revenue totaled NT$595.966 billion, marking a 12.32% year-over-year increase. The strong rebound in December not only pushed annual revenue close to the NT$600 billion mark but also surpassed the company's high-end fourth quarter financial forecast.

Market sources say Xiaomi is expanding its in-house XRing chip lineup. Beyond developing the next-generation XRing O2 on TSMC's N3P process, the company also plans to extend these processors into "non-smartphone" products to further raise its level of self-reliance.

At CES 2026, chipmakers remained at the center of attention. Nvidia CEO Jensen Huang and AMD CEO Lisa Su both delivered keynote speeches, while Lenovo hosted a major event at the Sphere, bringing together Intel, AMD, Nvidia, and Qualcomm to showcase their PC processor strategies.

Distribution giant Synnex Technology International Corp. posted robust revenue growth in December 2025, benefiting from rising memory prices and increased demand for AI server applications. The company's consolidated revenue for the month reached NT$47.025 billion (approx. US$1.49 billion), up 13.6% from November and 13.8% year-over-year.

India's semiconductor ambitions are beginning to extend beyond fabrication and conventional packaging into secure chip personalization and cryptographic control, as Kaynes Semicon and SEALSQ detailed the roadmap for their newly approved joint venture (JV).

Electronic component distributor Honey Hope Honesty Enterprise (3H) reported December 2025 revenue of NT$652 million (US$20.63 million), up 52.01% year over year. The strong growth was primarily driven by urgent customer orders, which boosted sales. For the full year of 2025, cumulative revenue reached NT$5.43 billion, up 15.75% compared to 2024.

Taiwan and Europe will continue to strengthen collaboration in advanced fields such as drones, robotics, and low Earth orbit (LEO) satellites in 2026, according to Chao-chung Kuo, director general of the Department of Industrial Technology (DOIT) at the Ministry of Economic Affairs (MOEA). Kuo made the announcement at a press conference hosted by the DOIT on January 7, which showcased the results of cross-national collaborative R&D efforts with Europe. These include Innolux's entry into the market for high-voltage EV charging, and MediaTek's collaboration with Eutelsat OneWeb. In addition, the number of countries participating in the Eureka Network's Globalstars program is expected to increase to seven in 2026.

At the opening of his keynote, Nvidia CEO Jensen Huang delivered a stark message: the world's US$10 trillion computing infrastructure is entering a fundamental modernization phase, driven by two platform shifts unfolding in parallel.

India's backend semiconductor makers see temporary relief from material constraints linked to legacy packaging, as KLA opens a US$36 million R&D hub in Chennai to boost AI, software, and process control capabilities.

India has made measurable progress in nurturing a domestic semiconductor chip design ecosystem, with early outcomes emerging from government-backed programmes aimed at reducing dependence on imported intellectual property and strengthening participation in higher-value segments of the global chip industry.

Following the US government's decision to ease restrictions on Nvidia H200 chip exports to China, Wei Shaojun, vice chairman of the China Semiconductor Industry Association (CSIA), warned domestic firms to exercise caution when placing orders, saying Washington's true strategic intent remains unclear.

At CES 2026, Qualcomm Technologies highlighted new collaborations and growing adoption of its Snapdragon Digital Chassis solutions, aiming to advance software-defined vehicles (SDVs) and agentic AI-driven in-cabin experiences. The company outlined updates across infotainment, digital cockpit, advanced driver-assistance systems (ADAS), and end-to-end automated driving platforms.

Nvidia's next-generation AI superchip, Vera Rubin, has become the center of industry debate following comments by CEO Jensen Huang at CES 2026, where he said the product had entered the production phase. The statement has drawn scrutiny from the semiconductor supply chain, particularly memory makers, as questions emerge over the readiness of sixth-generation high-bandwidth memory (HBM4) for commercial deployment.