Acer chairman and CEO Jason Chen said the current PC supply bottleneck is most severe in CPUs rather than memory, while the company can still meet demand due to long-term supply agreements. He said full-year PC shipments in 2026 are expected to decline 6-9%, with a sharper drop in the second half than in the first half.
Nvidia CEO Jensen Huang, who is visiting Taiwan for two weeks, stated that the island's manufacturing sector is developing rapidly and needs more electricity.
The global AI server market continues to expand at a rapid pace, driven by higher capex from large cloud service providers (CSPs) and rising demand for generative AI infrastructure. As a result, the broader server industry is set to post another strong year in 2026, while the AI server supply chain faces both booming demand and persistent shortages.
Taiwanese machinery component maker Hiwin has officially opened its new headquarters in Agrate Brianza for its Italian subsidiary, saying the site will serve as a key hub connecting Europe with global markets and strengthening its international service network. Chairman Eddie Chuo said that Hiwin Italy is not only an operating base, but also a critical bridge for broader regional integration.
SmartSens and Unisoc have formed a strategic partnership to develop Micro LED high-speed optical interconnects, aiming to deliver domestic, low-power, high-bandwidth solutions for short-reach AI cluster links. The collaboration could accelerate the commercialization of Micro LED co-packaged optics (CPO) technology and strengthen China's role in global AI infrastructure supply chains, according to a press release.
Accelerating the adoption of smart manufacturing, AI-driven automation, and humanoid robot applications in 2026 is driving robust growth across Taiwan's robotics supply chain. Systems integrators and key transmission-component suppliers posted strong first-quarter 2026 results, with many reporting double-digit increases in both revenue and profit amid expanding demand from traditional industrial automation and emerging AI robotics applications.
Luxshare Precision Industry said at its annual shareholders meeting on May 22 that it expects AI infrastructure to expand strongly over the next three to five years. Still, it warned that energy constraints and immature industry standards will pose significant hurdles. The Chinese electronics manufacturer compared the AI opportunity to the 2017 consumer electronics market and said it is accelerating AI infrastructure efforts through its communications business.
Tight upstream copper concentrate supply has kept prices high despite rising exchange inventories, squeezing margins for electronics companies and prompting suppliers to pass costs on and cut low-margin output — developments that could push component prices higher worldwide as AI-driven demand accelerates consumption and firms stockpile materials across the manufacturing and infrastructure sectors.
China Electric Manufacturing Corporation said at its May 26 shareholders meeting that first-quarter 2026 revenue was flat while gross margin rose to 38%, and it planned a phased digital transformation in the second half of 2026 to drive significant net profit growth versus 2025. The firm announced it would deploy cloud computing, Internet of Things, and artificial intelligence technologies, integrated with its existing enterprise resource planning system, to improve operational efficiency and attract new customers.
Cloud providers' large-scale investments in AI infrastructure have strengthened demand for Taiwan's electronics supply chain, boosting optimism among local manufacturers, according to a Taiwan Institute of Economic Research (TIER) survey. The survey noted that nearly 40% of Taiwan's electronics and machinery makers were optimistic about business conditions over the next six months as cloud service providers planned massive capital outlays in 2026 to meet surging AI compute needs.
Xiaomi placed AI at the center of its first quarter 2026 strategy, saying it will "take the agent as the core" of a new OS approach and pushing its MiMo model and token plans to drive product adoption and monetization across phones, cars, IoT, and robotics.
Aixtron has received multiple orders from Lumentum for its G10-AsP MOCVD systems, a move that could boost global production of indium phosphide (InP) lasers and detectors for 800G and beyond. The deal underscores growing demand for high-speed optical interconnects in AI data centers and signals capacity expansion in photonics manufacturing worldwide.
J&V Energy Technology announced the launch of a subsidiary focused on supercomputing. It said its system-level energy storage unit, Recharge Power, will list on the emerging stock board on May 27 as the two firms target energy storage infrastructure for AI computing centers. The move responds to rising GPU power demands and aims to capture growth from the convergence of AI and energy in Taiwan and abroad.
Castrol is expanding from supplying cooling fluids to providing liquid-cooling testing and lifecycle services for AI data centers, the firm announced, as demand for faster deployment and reliable operation grows. The company said its Silicon Valley laboratory opened in 2026 to deliver load bank testing and simulation of power and liquid-cooling infrastructure before customer site deployment, targeting containerized data centers and hyperscale environments.
Chun Yuan Steel outlined strategic moves on May 25 as it pursues new growth opportunities tied to Toyota's plan to establish a Taiwan production base and to rising demand from China's southern low-altitude economy and robotics sectors. Executives said the company will prioritize automation and targeted investments rather than rapid capacity expansion, and flagged the second half of 2026 as a period when automotive materials demand should improve.
Longwell, a cable and connector supplier, said on May 25 that it has entered Nvidia's supply chain for the next-generation AI server platform after its high-power cables passed the latest chip platform certification and moved into market qualification and pilot production. Shipments were expected to begin in the second half of 2026, with volumes set to expand further in 2027, the company announced.
TECO Electric & Machinery announced on the 25th that it signed an agreement to acquire about 78% of Malaysian engineering firm Dynaciate Engineering Sdn. Bhd. for roughly 200 million ringgit (about NT$1.6 billion). The closing was targeted by the end of August and the firm said the move is intended to expand TECO's data center infrastructure footprint in Southeast Asia to serve global cloud service provider customers.
According to market research firms, the global edge AI market is forecast to post a compound annual growth rate of 26% through 2032, while the overall edge computing market is expected to expand from US$131 billion to US$440 billion between 2023 and 2033, highlighting explosive growth potential and drawing in a wave of investment.
GoPro's takeover talks are putting a spotlight on a broader shift in handheld cameras, as the market moves from rugged action devices toward creator-focused gimbal and 360-degree products increasingly shaped by Chinese brands.
Geopolitics and price are reshaping who builds the world's AI infrastructure. Across emerging markets in Southeast Asia, Africa, and Latin America, governments and enterprises are increasingly turning to Chinese server makers as an affordable alternative to US-dominated tech ecosystems — driven partly by budget constraints and partly by a deliberate push to avoid dependence on any single power.
India's electronics manufacturing industry, which has emerged as the world's second-largest mobile phone production hub after China, is facing growing pressure as slowing smartphone demand and rising component costs erode profitability, prompting manufacturers to expand into higher-margin sectors such as defense, industrial electronics, and medical devices.
Topco Energy Service, a Topco Group unit, and Bloom Energy installed a 2.6MW solid oxide fuel cell on-site power system at a Taiwan IC design firm's Miaoli data center, creating what they called the nation's first data center using a distributed low-carbon generation model. The project began with a 1.3MW phase that entered service in January 2026 and reached full 2.6MW capacity in June, with the developers saying the installation can generate about 21.6 million kilowatt-hours annually.
Univacco, which held its shareholders' meeting last week, said that 2025 was a challenging year for the global economy and its industry, with exchange-rate swings, geopolitical risks, rising net-zero and sustainability compliance requirements, and shifting international trade policies all weighing on operations.
Nvidia, AMD, and Intel are all optimistic about AI development. However, server supply chain companies admit that orders are no longer the issue. Instead, what is most lacking are three critical resources: power, human labor, and financial resources. Among these, power and labor have become the biggest obstacles for manufacturers, which is intensifying competition across the supply chain for electricity and talent.
