As the Legislative Yuan nears the end of its current session, opposition parties have proposed significant cuts and freezes to the 2025 central government budget. At a press conference on January 16, Premier Jung-tai Cho warned that these reductions would weaken Taiwan in five critical areas: technological development, national security, civil service performance, government communications, and overall national competitiveness.

As AI embraces rapid developments, the future of AI-driven lifestyles will rely heavily on display technology. According to Taiwan's Industrial Technology Research Institute (ITRI), display technology is becoming integral to three key AI edge devices: TVs, AR/VR glasses, and smart cockpits. Leveraging the technological advantages of Micro LED, the emerging era of "AI of Things" (AIoT) is set to position Taiwan's display and sensor industries at the forefront of a new market.

Strong AI-related demand will drive TSMC's 20% compound annual growth rate in revenue over the next five years, according to chairman C.C. Wei during the company's latest earnings call. This optimistic outlook aligns with broader server supply chain indicators, as order and shipment volumes demonstrate continued momentum in AI server demand, even amid concerns about GB200 shipments.

After significant product and organizational adjustments in 2023 and 2024, Kinpo CEO Andrew Chen reported notable profit growth, signaling that the company's efforts are paying off. Looking ahead to 2025, Chen acknowledged challenges and opportunities, emphasizing the continued benefits of global diversification and the planned integration of artificial AI into internal operations.

The US has introduced stricter export controls on chips with 30 billion transistors at 16/14nm nodes to limit Chinese access to advanced processors. Industry sources indicate that this will immediately impact Chinese AI accelerator developers.

Wistron announced its consolidated financial results on January 16, 2025, reporting a record-breaking annual revenue that exceeded NT$1 trillion (US$33.3 billion) for the first time, reaching NT$1.049 trillion. The gross profit stood at NT$84.116 billion, the operating net profit was NT$38.98 billion, the pre-tax net profit amounted to NT$40.057 billion, and the post-tax net profit reached NT$30.629 billion. Among the company's diverse portfolio, AI servers emerged as the primary growth driver.

Taiwan-based chassis provider Chenbro Micom experienced a complex 2024, reaching NT$145.2 billion (approx. US$4.41 billion) in revenue, reflecting a 29% year-over-year increase. As geopolitical challenges persist, the company is expanding its manufacturing capabilities to Malaysia and the US and remains optimistic due to strong AI demand.

Statistics from Taiwan's Ministry of Finance show a significant trade surplus with the US of US$64.88 billion. Coinciding with Donald Trump's second term as President, it may put Taiwan in a delicate position.

Despite ambitious plans to develop its semiconductor ecosystem, Vietnam faces persistent power supply issues that could impede industry growth and foreign investment.

As Donald Trump prepares to be inaugurated as President of the US on January 20, his controversial campaign statements and post-election remarks have raised alarm among allies in Europe and Asia. Proposals such as imposing higher import tariffs, demanding increased military spending from allies, withdrawing from the World Health Organization (WHO), and even attempting to purchase or annex Greenland have left countries scrambling to assess potential impacts and countermeasures.

Recent shifts in the global smartphone manufacturing landscape highlight diversification efforts among iPhone manufacturers. Tata Electronics is exploring partnerships with major Android brands, while Luxshare expands through acquisitions, reducing reliance on Apple. As Taiwanese firms pivot towards AI and other sectors, this trend underscores the need for new revenue streams amid a maturing market.