Democrats have won control of Congress in the US midterm elections, turning the second half of President Donald Trump's term into a lame-duck period. Trump still holds the veto, however, and overriding it requires a two-thirds vote in both chambers. Congress is therefore more likely to apply pressure through budgets, investigations, and blocking new legislation than to overturn executive orders outright. For Taiwan's technology sector and supply chain, several fronts are worth watching closely.

The US midterm election and referendum results show broad public opposition to building more data centers, raising the prospect of tougher local-government reviews for large-scale facilities and prompting hyperscalers to shift some AI infrastructure investment overseas. Meta Platforms President Dina Powell McCormick said the issue had become a key election topic as companies struggle to demonstrate tangible benefits for local communities.

V5 Technologies, a major provider of advanced semiconductor optical inspection and image-processing software, reported consolidated revenue of NT$316 million (US$9.61 million) in October 2026, up 1.67% from September and 32.5% year-on-year. Revenue for the first 10 months surpassed NT$2.6 billion, rising 69.7% from the same period in 2025.

Niching Industrial reported a 369% year-on-year increase in 3Q26 operating profit to NT$45.05 million (US$1.37 million), as the consolidation of Ming Chun Yuan boosted manufacturing contributions and improved its product mix. Gross margin climbed to 28%, up 8 percentage points from the previous quarter.

Rehear Audiology has signed a strategic memorandum of understanding (MOU) with Saudi Arabia's Medical Electrical Equipment Maintenance Professionals Association (MEEMPA) to introduce advanced AI hearing-care technology, conduct clinical validation, and develop a localized healthcare ecosystem in Saudi Arabia and the Gulf Cooperation Council (GCC) region.

SK Hynix's US-based artificial intelligence (AI) investment arm, HYAICO Corporation, has acquired a stake in AI infrastructure provider Penguin Solutions from an SK Telecom affiliate for US$377.16 million, according to filings with the US Securities and Exchange Commission (SEC).

Texas governor-elect Gina Hinojosa has announced plans to suspend new data center approvals until the state establishes legal safeguards for residents, power supplies, and the environment, while also urging the state government to pause land deals that could involve SpaceX. The policy could reshape investment plans by major technology companies in one of the US's fastest-growing AI data center regions and a key base for Tesla and SpaceX.

Taiwan-based Primax Electronics plans to increase the share of its business-to-business (B2B) operations over the next five years, expanding beyond traditional PC peripherals into artificial intelligence (AI), smart security, automotive and robotics applications. With public safety and surveillance projects already secured through 2029, the company expects these higher-value businesses to underpin sustained double-digit growth.

The Democratic Party's sweeping victory in the US midterm elections has raised concerns that data-center construction and the broader AI supply chain could slow. However, supply-chain sources said that while opposition to data centers has intensified, AI development is unlikely to lose momentum because it has become central to national competitiveness, regardless of which party controls the US government.

Server chassis maker Chenbro Micom reported a 5.4% quarter-over-quarter decline in revenue for the third quarter of 2026, as inventory adjustments following aggressive customer pull-ins during the first half and shortages of key electronic components at the system level affected complete-system shipments. Chenbro said its full-year operating scale will still exceed that of 2026.

The midterm election results reshaped the US Congress and the local political landscape. It also introduced new uncertainty for the rapidly expanding AI industry. Democratic victories in both chambers of Congress and in data-center hubs including Texas, Georgia and Ohio reflected voter frustration with tech giants' heavy consumption of electricity and water while shifting some costs onto local communities.