Nvidia's ability to sell high-performance AI chips in China has been sharply limited by US export licensing rules, which have restricted shipments of its H20 and H200 products. The controls have already forced Nvidia to take a US$4.5 billion inventory charge and have left the company uncertain about future revenue from China. Meanwhile, local competitors, some strengthened by recent IPOs, are expanding rapidly, potentially reshaping the global AI market.

Benefiting from its group integration strategy, Taiwan Mask Corporation (TMC) is seeing operations that are gradually recovering. The parent company's core business has seen five consecutive months of profit growth. In January 2026, consolidated revenue reached NT$536 million (US$17.2 million), with the core photomask business contributing NT$340 million, accounting for over 60% of total revenue — marking nearly a one-year high. The company's monthly self-reported profit came close to the NT$100 million mark.

The US is quietly rebuilding its domestic semiconductor industry by reducing dependence on Taiwan, which produces roughly 90% of the world's most advanced computer chips. Experts warn that any disruption to Taiwan's chip supply, whether from geopolitical tensions or natural disasters, could trigger a global economic crisis.

As demand for high-speed transmission in AI advanced packaging surges, IC substrate major Unimicron Technology said that high-end ABF substrates required for AI applications are strongly leading a market recovery, gradually breaking free from the post-pandemic overexpansion downturn. Despite the rapid market recovery for IC substrates, the short-term problem of T-glass fiberglass shortages remains. Although improvement is expected in the second half of 2026, high-end ABF substrate supply is likely to remain tight until the end of the year, and nearly all customers are facing limitations in sourcing fiberglass.

Memory manufacturers Team Group and Apacer Technology reported record profits in 2025, driven by rising DRAM and NAND Flash prices and growing demand for high-capacity, high-bandwidth memory products.

Taiwanese passive component giant Yageo reported a strong operational rebound in the fourth quarter of 2025, driven by continued growth in demand related to artificial intelligence (AI) and high-end applications. The company also benefited from an optimized product portfolio and the completion of its acquisition of Japan's Shibaura Electronics, which was consolidated into group revenue starting in November 2025.

On February 24, 2026, Taiwan Semiconductor Manufacturing Company (TSMC) crossed the US$2 trillion market capitalization mark, becoming the eighth company in US stock market history to reach the milestone and the first from Taiwan. The achievement places TSMC sixth in the global rankings by market value, behind Nvidia, Apple, Alphabet (Google), Microsoft, and Amazon.

The Malaysian Anti-Corruption Commission is probing the MYR1.11 billion (US$250 million) agreement with UK-based Arm Holdings amid seizures, arrests, and political fallout. The government maintains the Cabinet-approved deal is still in force, and ministers have pledged cooperation with investigators.

All eyes are on Jensen Huang ahead of the March 16–19 GTC conference. Nvidia's chief executive has promised to unveil a chip unlike anything the world has seen before —and speculation is now mounting over what that chip might actually be.