US President Donald Trump has publicly called for raising the 2027 US defense budget to US$1.5 trillion, a sharp increase of more than 50% from the current US$901 billion. In a social media post, Trump highlighted that this funding increase is necessary to build a "Dream Military" in "these very troubled and dangerous times."
On January 6, 2026, China's Ministry of Commerce (MOFCOM) announced that, to safeguard national security and interests, it would strengthen export controls on dual-use items to Japan. It also initiated an anti-dumping investigation on specialty gases exported to Japan's chip industry. This goes far beyond its previous rare earth controls, with vague definitions for military and civilian applications.
Taiwan and Europe will continue to strengthen collaboration in advanced fields such as drones, robotics, and low Earth orbit (LEO) satellites in 2026, according to Chao-chung Kuo, director general of the Department of Industrial Technology (DOIT) at the Ministry of Economic Affairs (MOEA). Kuo made the announcement at a press conference hosted by the DOIT on January 7, which showcased the results of cross-national collaborative R&D efforts with Europe. These include Innolux's entry into the market for high-voltage EV charging, and MediaTek's collaboration with Eutelsat OneWeb. In addition, the number of countries participating in the Eureka Network's Globalstars program is expected to increase to seven in 2026.
Japan has formally committed to building its own low-Earth-orbit (LEO) satellite constellation, marking a significant shift in how the country approaches communications infrastructure and national security.
As commercial space activity accelerates worldwide, Alex Haro, the chief executive of Hubble, describes the industry as undergoing a structural shift—one that is transforming satellites from experimental hardware into global digital infrastructure.
Tex Year Industries has just about completed its layout in specialty adhesives, materials, and chemicals for the AI and optoelectronics industries. It expects to see a significant increase in shipments and double-digit growth in 2026. This year, Tex Year will focus on five areas: AI cloud data centers, EVs, drones, smartphones, and Mini LED displays.
Rising use of commercial drones in logistics, energy inspection, surveying, and infrastructure monitoring is reshaping demand for microcontrollers and edge-computing components. The shift is pushing suppliers beyond basic motor control and toward higher-performance flight systems.
Field-programmable gate array (FPGA) designer DCC Technology recently held a shareholders' meeting and approved a company name change. After completing administrative procedures, the company officially announced its new name as Nexora. The name combines tech themes like "Next" and "Aurora" to signify "the next dawn," symbolizing a commitment to innovation built on a solid technical foundation while looking toward long-term industry development.
G-Tech Optoelectronics (GTOC), a glass processing subsidiary of Hon Hai Precision Industry (Foxconn), announced it has signed a five-year framework agreement with a US defense systems integration contractor, covering the period from December 31, 2025, to December 30, 2030. The partnership will comply with relevant defense, national security, export control, and supply chain security regulations in the US, Japan, and Taiwan.
Japan's Ministry of Defense announced in December 2025 that it had suspended Kawasaki Heavy Industries from bidding on defense contracts until March 11, 2026, a 2.5-month ban following revelations of falsified fuel efficiency data for submarine engines supplied to the Maritime Self-Defense Force.
The National Aerospace Fasteners Corporation (NAFCO) revenue for December 2025 hit a new record of NT$405 million (approx. US$12.9 million), up 7.84% month-over-month and 19.61% year-over-year. In response to customer demand, the company will continue to expand its Malaysia operations while pushing capacity at its Taiwan plant.
More coverage
