As 2026 begins, DIGITIMES has conducted in-depth analyses of sectors within the electronics industry. The current landscape theme can be described as "one core, two keys, three drivers." The core, semiconductors, has two keys —the satellite industry and memory— and will be driven by three factors: AI servers, defense, and green energy. These areas will be critical to watch in 2026.

2025 proved turbulent for downstream applications and end-user devices. Tariffs and geopolitical tensions dominated the first half, while AI gained momentum later in the year. Global market unpredictability pushed many brands—particularly in China, the epicenter of geopolitical tensions—toward domestic markets and self-sufficiency.

Tatung held an extraordinary shareholders meeting on December 30, where its board was comprehensively reshuffled with nine directors (including three independents), and non-compete restrictions on the newly elected directors were lifted.

Infineon is leveraging its technological strengths to expand into cutting-edge applications in AI data centers and robotics. The company is currently collaborating with Nvidia to develop power systems for next-generation AI racks, featuring direct current (DC) voltages up to 800V.

Set-top box maker Skardin Industrial confirmed that it has recovered a portion of its bad debt from an Argentine client, recognizing approximately NT$110 million (US$3.5 million) in bad-debt reversal gains, which have significantly strengthened operating cash flow. The company plans to continue advancing its transformation strategy, focusing on green energy, internet data centers (IDC), and resilient communications modules as its next growth engines.

Market attention in the modern AI computing power competitive landscape has mainly focused on semiconductor chip upgrades. But according to Chih-Ming Lin, chairman of Tatun Electric, the real challenge lies elsewhere. The company, with more than 70 years of industry experience, believes AI will not turn into a bubble—provided power transmission issues are effectively resolved.

Demand for green talent in Taiwan has surged to unprecedented levels. The pending implementation of carbon fees, continued growth in the green technology sector, and rising demands for net-zero emissions in global supply chains have created a massive workforce gap. Statistics show that Taiwan's green workforce shortfall neared 30,000 in 2025, marking a new record high at nearly 300% the level eight years ago. The electronics, IT, and semiconductor industries show the strongest hiring needs. AI skills have also become highly sought after, with employers favoring expertise in software engineering and R&D.

Solid oxide fuel cells (SOFCs) are drawing significant attention because of their flexible and rapid deployment capabilities as AI's electricity demand continues to skyrocket. Kaori Thermal Technology, a key supplier to SOFC fuel cell leader Bloom Energy, stated that customer demand remains strong, enabling both capital and workforce expansion. The company said its 2026 capex will be the largest since its founding, and its headcount is set to increase by more than 40%.

Taiwan's energy transition is facing unprecedented challenges. In 2025, domestic solar power grid connection capacity plunged to an all-time low, squeezed by the dual pressures of policy instability and tightening regulations. Industry leaders warn that if the current administrative stalemate continues, achieving 2026 policy targets will be unrealistic, risking not only a single sector downturn but also international doubts about Taiwan's energy resilience as a whole.

On December 23, 2025, Softstar Entertainment held an extraordinary shareholders' meeting to approve its official name change to Star Fusion Group, signaling a decisive transformation into a technology- and energy-focused conglomerate. Chairman David Tu said the group now employs around 3,600 people across 11 subsidiaries and more than 30 affiliated companies, spanning gaming, semiconductors, cybersecurity, dining, third-party payments, and heavy electrical equipment.

Alphabet has agreed to acquire Intersect, a provider of data center and energy infrastructure solutions, in a cash deal valued at US$4.75 billion plus the assumption of debt, the company said on December 22, 2025. The transaction is expected to close in the first half of 2026, subject to customary regulatory and closing conditions.

Star Charger, a charging operator under HD Renewable Energy (HDRE), has announced it has achieved 159 operational stations across Taiwan. To meet the growing electric vehicle (EV) charging demand, Star Charger launched its first 1 MW-class high-power fast-charging dedicated station in Taichung City, and plans to bring online 10 more large-scale dedicated stations by 2026.

The US Department of Energy (DOE) announced agreements with 24 organizations to participate in the Genesis Mission, a national initiative leveraging artificial intelligence (AI) to advance scientific research, strengthen national security, and drive energy innovation. The mission, established under President Trump's Executive Order on AI leadership and America's AI Action Plan, aims to remove barriers to domestic innovation and expand US competitiveness in AI-driven research.

Taiwan's Academia Sinica is pushing forward its public infrastructure project launched in 2025, focused on a megawatt-scale mixed hydrogen power generation system using decarbonized natural gas. The initiative aims to produce clean energy while addressing Taiwan's pressing green energy shortfall through innovative hydrogen technology.

Researchers from Academia Sinica, National Central University (NCU), and Yuan Ze University announced significant advancements in hydrogen electrolysis technology at a December 17 press conference held at Taiwan's National Science and Technology Council (NSTC). The team detailed the development of new core materials for proton-conducting solid oxide electrolysis (P-SOEL), aiming to reduce energy consumption and lower costs in hydrogen production.

Texas has become one of the world's leading regions for AI data center construction. However, this trend has put its power grid under dangerous pressure, exceeding what realistic power supply conditions can support. Texas is only one example; several other states are facing similar problems of aging and fragmented power grids, lacking a cross-regional, large-scale power dispatch system.

A recent report from Bloomberg New Energy Finance (BNEF) states that the global nuclear industry is expected to commission fifteen nuclear reactors in 2026, adding approximately 12GW of fission-based electricity capacity. This expansion will reverse the decline seen in 2025, when global nuclear capacity decreased by about 1.1GW. BNEF statistics show that only two new reactors became operational globally by November 2025, while seven reactors were permanently shut down.

AI is inevitably driving innovation in global server architecture. AI servers differ significantly from traditional servers in design philosophy and operational mode. This reflects not only innovations in computing architecture but also emerging challenges in energy consumption and thermal management driven by rapidly increasing computational demands.

AI data centers (AIDCs) in the US are reshaping power dynamics between energy and technology sectors. Although they were once considered a cornerstone of cloud services and AI, it has become clear that their unrelenting power consumption has caused electricity bills to skyrocket. According to January 2025 statistics from the National Energy Assistance Directors Association (NEADA), the national average electricity bill in the US has risen by around 11%, roughly three times the overall inflation rate. In the first half of 2025, approximately 14 million people nationwide were behind on their electricity bills, with average debts reaching US$789, an increase of about 30% year-over-year compared with 2022.

As artificial intelligence applications and model scales continue their rapid expansion, the technology industry faces a mounting infrastructure crisis: power supply cannot keep pace with demand. Time Magazine has declared there is no turning back from AI's unrelenting growth, yet this advancement comes at a steep cost—massive energy consumption that is pushing data centers to the limits of existing power grids.

The US government is beginning to grow cautious of AI data centers (AIDCs) because of their enormous pressure on power grids. In facing the hard limits of energy resources, policymakers will be forced to reallocate resources and shift priorities. If an AIDC cannot present a comprehensive power generation and consumption plan and relies solely on access to the public grid, the project is almost impossible to pass approval.

As South Korea accelerates its push to advance nuclear fusion research and move toward commercialization, experts are warning that the country's existing regulatory framework—largely designed for nuclear fission—could slow progress and undermine competitiveness.

Japanese trading house Sumitomo Corp. plans to double its investment in India's renewable energy sector, committing a total of JPY2 trillion (about US$13 billion) through a joint venture with local clean energy developer AMPIN Energy Transition, underscoring its growing focus on India as a key market for energy transition and industrial growth.