Intel has poached Eric Demers, a veteran GPU architect, known for developing Qualcomm's proprietary Adreno GPU architecture. Demers will become Intel's senior vice president of GPU engineering. This suggests that even though Intel has long been unable to compete with Nvidia and AMD in the GPU market, it still hopes to strengthen its own GPU capabilities.

Chinese authorities have increased scrutiny on rare earth exports bound for Japan, as export volumes declined in December 2025 compared to the previous month. The move reflects Beijing's intent to exert greater control over essential materials amid escalating tensions with Tokyo.

Inventec plans to double its capital expenditure (capex) in 2026 to US$1 billion, looking to seize opportunities in the artificial intelligence (AI) server market. Company chairman Sam Yeh highlighted that revenue from AI servers grew 40% in 2025, solidifying the company's position as a key industry player. Looking ahead to 2026, AI-related business is poised to reach new highs, with robust growth momentum expected to continue.

Inventec is making noticeable strides in expanding its presence in the robotics and automotive electronics markets, with ambitious growth projections over the next two years. Chairman Sam Yeh outlined the company's strategic focus on humanoid robot development and anticipated significant increases in automotive revenue during a January 20 press event.

Taiwan's tech sector is advancing its global layout amid a worldwide push for restructuring supply chains and promoting localized manufacturing. As evidenced in the recent trade agreement between the US and Taiwan, in which Taiwan received reduced tariffs in exchange for increased investments in the US, the so-called "Taiwan model" offers a viable pathway for Taiwanese firms planning to invest in capacity in the US.

The four-year Russia-Ukraine war stalemate persists, while escalating US-EU tensions linked to the US attempt to purchase Greenland have triggered retaliatory tariffs and market disruptions. Europe's imposition of tariffs and restrictions worth EUR93 billion (US$107.95 billion) on US companies is contributing to a sharp decline in global shipping indexes.

The World Economic Forum (WEF) has named Foxconn Industrial Internet's (FII) Bac Ninh Province facility in Vietnam as the country's first Sustainable Lighthouse Factory, recognizing its use of generative AI (GenAI) to deliver measurable carbon reductions and set a new benchmark for green manufacturing.

Taiwan's HTC Corporation is rapidly expanding its AI glasses ecosystem following the debut of its first AI eyewear, Vive Eagle, as it scales distribution, deepens AI partnerships, and prepares for an AR-enabled next generation of smart glasses.

Nvidia Corporation's market value has surged to US$4.5 trillion amid the expansion of the AI industry, overtaking Apple Inc. and Microsoft Corporation, while Taiwan Semiconductor Manufacturing Company (TSMC) reached a market capitalization of NT$46 trillion (US$1.45 trillion). Taiwan's information electronics sector is forecast to contribute over 6% to the nation's GDP by 2025, supported by strong chip manufacturing and AI server assembly.

As AI chip generations advance rapidly, power demands in data and compute centers are driving a fundamental shift in power supply design from single power supply units (PSUs) to system-level power racks. This shift entails highly modular, standardized power architectures, transforming power supplies into critical subsystems that ensure operational stability and efficiency.

Foxconn has established a joint venture, Henan Hongchuang Technology, in Zhengzhou, China, to enhance its manufacturing capabilities and supply chain resilience, with production set to begin in the second quarter of 2026.

China's Ministry of Commerce (MOFCOM) has tightened export controls on dual-use items to Japan, underscoring the growing strategic role of rare earth elements amid complex geopolitical and resource considerations. Concurrently, two leading Chinese rare earth producers, China Northern Rare Earth High-Tech Group and Inner Mongolia Baotou Steel Union, announced a 2.4% price increase for rare earth concentrates in the first quarter of 2026, marking the sixth consecutive quarterly hike since the third quarter of 2024.

Cloud service providers (CSPs) are significantly increasing capital expenditures, continuously investing in high-end AI servers and deploying cloud AI computing projects. This surge is driving demand for high-power hardware testing services, accelerating business for specialized electronic testing firms.

The recent Taiwan-US tariff agreement, establishing a reciprocal 15% tariff rate under the most-favored-nation (MFN) principle without stacking, marks a significant development for Taiwan's traditional manufacturing sectors, particularly the machinery industry. The resolution has been welcomed as a move toward restoring fairer competition with key rivals like Japan and South Korea, although concerns about exchange rate volatility persist.

"Physical AI"—the fusion of artificial intelligence with machines that move, sense, and act in the real world—emerged as a defining theme at CES 2026, where Chinese robotics companies made a particularly forceful showing. Dozens of humanoid robots were on display, underscoring how quickly China is moving to translate AI advances into physical form.

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.

Following the conclusion of the Taiwan-US tariff framework, industry attention centers on how Foxconn (Hon Hai Precision), a leading electronics manufacturer, will recalibrate its operations and strategy. Despite Foxconn's lack of an official statement, experts note that the company typically maintains a cautious stance on major trade policy changes, awaiting comprehensive details and execution guidelines before announcing its corporate responses.

Server ODM Quanta Computer is aggressively expanding production, with the expectation that capacity will double again by the end of 2026. Quanta's Executive Vice President and Quanta Cloud Technology (QCT) General Manager Mike Yang said that not only will manufacturing capacity increase, but the engineering staff responsible for R&D will also expand from nearly 3,000 people to an additional 500-800 employees.

Industry speculation about collaboration between optics manufacturers and semiconductor companies to bolster their silicon photonics (SiPh) capabilities is gaining ground. Following Largan Technology chairman Enping Lin's comments during a recent earnings call, Asia Optical chairman I-Jen Lai confirmed that Asia Optical is also a potential participant in this trend.

Wistron posted a record-high consolidated revenue of NT$2.19 trillion (approx. US$67.63 billion) for full-year 2025, according to its unaudited financial results announced on January 16. The company reported gross profit of NT$134.02 billion for 2025, while operating profit came in at NT$78.56 billion, income before tax totaled NT$76.26 billion, and net income after tax reached NT$27.401 billion.

Acer and Lenovo are optimistic about India's consumer electronics sector as the global market slows due to rising memory prices.

Touch panel manufacturer Young Fast Optoelectronics, which has shifted focus toward electromechanical products in recent years, plans to vertically integrate its optoelectronics division and introduce two new business segments by 2026. The company expects to boost growth by adding full assembly for gaming machines and general displays, as well as medium-to-large electronic paper (EPD) module lamination, with visible results anticipated by late first quarter 2026.

Humanoid robots and embodied intelligence were huge at CES 2026. Dexterous hands are a key component that determines the upper limits of a robot's manipulation capabilities. Despite significant progress in recent years in terms of degrees of freedom and control performance, several challenges remain to be addressed.

Meta Green Cooling (MGC) is making a comprehensive push into the AI liquid cooling sector, leveraging its unique full-spectrum capabilities. MGC chairman James Chen noted that, unlike competitors, MGC integrates mechanical design, electromechanical systems, thermal management, monitoring, data center design, and maintenance services under one roof. The company posted a remarkable 215% revenue growth in 2025 and expects similar expansion in 2026 as it capitalizes on rising liquid cooling demand.