In recent weeks, Taiwanese IC design companies have indicated during earnings calls that advance stocking across the IT industry has been notable. The typical off-season has remained relatively active, largely driven by expectations of memory shortages and price increases, as well as concerns that component costs could rise in the near term. Industry players generally believe the pull-in demand will likely balance out between the first and second halves of 2026, suggesting that the traditional seasonal cycle of weak and peak periods may largely be absent this year.

In the AI era, technological competition among leading chip design companies continues to intensify. Broadcom announced in 2024 that it was working with TSMC to launch its 3.5D eXtreme Dimension System in Package (XDSiP) platform, with products scheduled to ship in 2026. Broadcom has now confirmed that the product, built on a 2nm process and using 3.5D system-level packaging, has begun shipping on schedule, primarily to customer Fujitsu.

China-based CMOS image sensor (CIS) supplier SmartSens Technology has notified customers of price increases, stating that from March 1, 2026, prices for its smart security and AIoT product lines will rise by 10% or 20%, depending on the upstream wafer foundry manufacturing the products.

The US and Israel launched coordinated strikes on Iran over the weekend, prompting Tehran to threaten the closure of the Strait of Hormuz, a key oil transit route in the Persian Gulf, and to attack several Gulf monarchies on the Arabian Peninsula. As the military confrontation continues, markets are assessing the potential impact on the global economy.

The US is moving to bar federal agencies from buying certain semiconductors tied to major China-based chipmakers, widening procurement restrictions even as memory shortages and rising prices strain electronics supply chains.