Microsoft reported better-than-expected revenue and profit for its fiscal second quarter 2026, but concerns linger over slowing cloud growth. Despite expanding capital expenditure (capex), Azure's core business showed a decline in growth, raising questions about Microsoft's competitive edge in the AI race.

Kinsus, the IC substrate arm of Pegatron, has approved additional project-based capital spending totaling NT$23.5 billion (approx. US$744 million) to support ABF substrate equipment purchases over the next three years. The expansion will be located at its Plant 6 facility in Yangmei, Taoyuan, with monthly output expected to increase by about 25% by 2027.

Apple reported strong results for its fiscal first quarter of 2026, but the company's supply chain did not share in the enthusiasm. The key reason is that Apple is feeling the impact of rising prices for critical components while striving to maintain a certain gross margin range. This means increased pricing pressure on suppliers.

Wuhan Jingce Electronic Group forecasts net profit of CNY80 million to CNY90 million (approx. US$11.5 million to US$13 million) for 2025, representing year-over-year growth of 181.97% to 192.21%. Net profit excluding non-recurring items is expected to reach CNY21.66 million to CNY31.66 million, up 113.66% to 119.97%, reversing losses from the previous year.

Rising automotive electronics demand has pushed Samsung Electro-Mechanics (Semco)'s Tianjin plant to full capacity across its multilayer ceramic capacitor (MLCC) production lines, with about 8,000 workers running operations 24 hours a day. The Tianjin site is Semco's largest global manufacturing base, focused primarily on automotive MLCCs while also supplying consumer electronics and server markets.

Kioxia Holdings sees an opportunity to expand its presence in high-density storage for AI data centers as rivals direct resources to other segments. The company's incoming president said demand tied to artificial intelligence continues to grow and Kioxia will keep capital spending disciplined.

ASE Technology Holding is accelerating capacity expansion across multiple locations to meet rising demand for advanced packaging and testing services, with projects underway in northern, central, and southern Taiwan, as well as in China and Malaysia. The company estimates that capital expenditure could reach US$6 billion in 2026, reflecting continued investment in equipment and facilities.

As demand for AI infrastructure continues to grow steadily, major networking and server PCB suppliers such as Gold Circuit Electronics (GCE), First Hi-tec (FHt), and Allied Circuit (ACCL) have benefited from a significant uptick in shipments of high-end boards, pushing full-year 2025 revenue to record highs.

Msscorps held its year-end gathering on February 1, 2026, during which chairman Chi-Lun Liu highlighted the company's two decades of deep expertise in semiconductor testing and analysis. Having established a global footprint across 12 facilities in Taiwan, China, the US, and Japan's key semiconductor hubs, Msscorps has seen monthly revenues hit record highs since the second half of 2025, signaling the start of a new growth phase.

The first half of 2026 is packed with events, including the Super Bowl, tax season, the FIFA World Cup, and the Lunar New Year holiday. TV brands have therefore moved forward with inventory stocking. China's top three panel makers—BOE Technology, TCL China Star Optoelectronic Technology (CSOT), and HKC—will simultaneously implement production cuts of five to 10 days each. This is expected to tighten overall supply-demand conditions for LCD TV panels and drive prices upward. Additionally, there are fewer working days in February, so panel output is expected to decline significantly, shifting supply and demand toward a tighter balance and making LCD TV panel price increases in February a certainty.

Below are the most-read DIGITIMES stories from the week of January 16 – February 1, 2026.