Memory maker Nanya Technology reported a strong rebound in the fourth quarter of 2025, driven by a more than 30% rise in DRAM average selling prices compared with the previous quarter and a 10% to 15% increase in sales volume. This boosted the quarterly gross margin to 49%, improving approximately 30.5pp from the third quarter. Fourth-quarter net profit after tax surged to NT$11.08 billion (US$351.08 million).

China's major smartphone manufacturers are revising their 2026 shipment forecasts downward amid tightening memory supply and surging prices, according to Jiemian News. Xiaomi, Oppo, Vivo, and Transsion have reportedly reduced their full-year smartphone shipment forecasts amid escalating upstream material costs that are increasingly pressuring mid- to low-end device segments, particularly those targeting overseas markets.

Leading smartphone system-on-chip (SoC) manufacturers will fully adopt the 2nm process node in 2026, a move expected to significantly increase production costs and reshape competitive dynamics beyond flagship devices.

Eternal Precision Mechanics (EPM), a subsidiary of Eternal Materials, made its official market debut on January 16, listing shares at an underwriting price of NT$125 (approx. US$3.95).

Memory price increases are significantly affecting consumer electronics, with smartphones and notebooks facing the greatest challenges, while TVs experience milder but still notable impacts. The surge in memory costs is not only driving up production expenses but also compressing profit margins for vendors and system integrators globally.

NAND flash prices have increased dramatically. Supply and demand are unlikely to ease this year as AI technology giants and large cloud service providers (CSPs) aggressively purchase high-capacity SSDs. At the same time, a severe shortage of fiberglass cloth has also emerged, which is expected to push SSD controller prices upward as well. The NAND shortage will be severe enough to set new record highs for market prices, potentially creating five major challenges for controller manufacturers, who must accelerate their strategies to compete in AI and enterprise server markets.

Tesla aims to shorten its in-house AI chip design cycle to one generation every nine months, targeting rivals Nvidia and AMD. However, industry analysts highlight automotive safety verification and software stability as the biggest bottlenecks.

Geopolitics has become an unavoidable force shaping business decisions in 2026. Shifting tariff policies under President Donald Trump have pushed global supply chains away from pure globalization and toward regional and localized production. While Washington has repeatedly called for manufacturing to return to the United States, executives across the industry say the economic and structural obstacles remain formidable.

With shipments of application-specific integrated circuits (ASICs) and XPUs expected to rise sharply in 2026, AI accelerators are set to continue relying on fifth-generation high-bandwidth memory, or HBM3E. Micron said at a recent earnings call that while demand for sixth-generation HBM4 is strong, it is also responding to additional growth in HBM3E demand.

Taiwan Surface Mounting Technology Corp. said revenue returned to growth in 2025 after two consecutive years of decline, though rising prices and tight supply of key components are expected to weigh on overall end-market demand. The surface-mount technology provider said it remains cautious on consumer electronics while seeing clearer growth momentum in DRAM modules and automotive applications in 2026.