US lawmakers are ramping up scrutiny of China's AI and semiconductor sectors, tightening oversight from corporate ties to capital flows to reinforce Washington's edge in the global AI competition.

Twoway Communications announced on November 5 that its unaudited consolidated revenue for the third quarter of 2025 reached NT$353 million (approx. US$11.42 million), with a gross margin of 37%. The company posted a net profit attributable to the parent company of NT$38 million, reflecting significant increases in both revenue and profitability compared to the previous quarter.

The ongoing surge in artificial intelligence (AI) investments has deepened the reliance of the four major US cloud service providers (CSPs) on Taiwan's AI chips and servers, significantly widening Taiwan's trade surplus with the US, according to Chien-yi Chang, president of the Taiwan Institute of Economic Research (TIER).

Driven by growing demand for AI servers, Catcher Technology has joined the competitive server chassis components arena. Chairman Hung Shui-shu said the server segment is still in its early stages, gaining traction only in recent months with entirely new customers. If the company successfully penetrates this market, Hung expects it to contribute significantly to future revenue. Production will leverage Catcher's Taiwan and Suqian, China plants, though Hung did not specify which segment of the server chassis business the company is targeting.

Flexible printed circuit (FPC) manufacturer Flexium Interconnect said its challenging business transformation phase was approaching completion after a difficult 2025. The company highlighted growing momentum for orders related to its MetaLink technology, anticipating stronger performance in 2026.

Chinese AI chipmaker Cambricon Technologies is facing a massive legal battle. The company's former chief technology officer, Liang Jun, has filed a lawsuit seeking CNY4.3 billion (US$590 million) in compensation for losses tied to a share incentive plan.

The global semiconductor industry is undergoing a structural shift as the AI era fully unfolds. Foxconn board member and former TSMC co-COO Shang-Yi Chiang stated that with Moore's law reaching its physical limits, Taiwan must not only maintain its wafer manufacturing lead but also rapidly advance into system design and packaging markets.

Touch IC leader Elan Microelectronics held an earnings call on November 6, reporting that third-quarter performance exceeded internal forecasts despite a weaker consumer market than in the same period in 2024. Sequentially, revenue grew 9.4% to NT$3.316 billion (approx. US$107 million), although year-over-year it fell 2.6%. Gross margin stood at 47.2%, down 0.8pp from the previous quarter and 2.1pp compared to a year ago. Operating income reached NT$792 million, rising 6.5% sequentially but declining 14.6% annually.

Google has introduced Ironwood, its seventh-generation Tensor Processing Unit (TPU), designed for large-scale AI model training, reinforcement learning, and inference.

Taiwan's machinery industry is leveraging artificial intelligence to transform from a traditional manufacturing base into a high-tech powerhouse, with growing ambitions in the global defense market. Former Taiwan Association of Machinery Industry (TAMI) chairman Alex Ko emphasized that the past decade has been marked by unprecedented global economic shifts and challenges for the sector.

Update: Jensen Huang, CEO of Nvidia, is already in Tainan, a city about 300 kilometers south of Taipei. He dined with several key executives of TSMC, including CC Wei, chairman and CEO of TSMC.

AI startup Anthropic is reportedly on track to generate US$70 billion in revenue by 2028, fueled by growing enterprise adoption and rapid expansion in API sales. TechCrunch, referencing The Information, reveals the company anticipates US$17 billion in cash flow accompanying its projected revenue growth.

Amazon Web Services (AWS) CEO Matt Garman has announced an additional US$5 billion investment in South Korea, bringing AWS's total commitment to US$9 billion to expand AI data centers. Garman highlighted South Korea as a prime market for AI innovation and positioned AWS as a key "AI innovation partner" for local enterprises, expressing particular optimism about the development of agentic AI.

Amid US President Donald Trump's tariff threats and new incentives under the US "One Big Beautiful Bill Act," foreign companies are increasingly planning major investments in the US. Japan aims to invest US$550 billion, South Korea US$350 billion, Malaysia US$70 billion, and Taiwan reportedly plans US$400 billion, though trade and diplomatic officials have not confirmed the latter figure.

End-market performance is expected to reflect improving demand for automotive chips in the second to third quarters of 2026. The optical industry has benefited significantly, with companies including CALIN, Asia Optical (AO), and Canon focusing on automotive lenses.

Leading electronics contract manufacturer Hon Hai Precision Industry (Foxconn) reported October 2025 revenue of NT$895.71 billion (US$28.99 billion), up 7% sequentially and 11.29% year over year, driven by the continued AI boom and peak season for smartphone shipments. The company's cumulative revenue for January to October 2025 reached NT$6.39 trillion, marking a 15.55% increase compared to the NT$5.53 trillion in the same period of 2024.

Taiwanese cybersecurity firm CHT Security announced its operational results for the third quarter of 2025 on November 5. Both revenue and profit reached new highs, with quarterly revenue up 6% year-over-year to NT$490 million (approx. US$15.86 million).

When Nvidia CEO Jensen Huang took the stage at Computex in Taipei on May 19, 2025, his remarks about the company's new Taiwan headquarters—called "Nvidia Constellation"—sparked both excitement and a flurry of phone calls.

Samsung is reportedly manufacturing Nvidia's robot application processors (APs), a move that could accelerate its expansion in physical AI, the convergence of artificial intelligence and robotics. As this new era unfolds, industry watchers are questioning whether Samsung's robotics division, one of its four strategic pillars, can deliver concrete outcomes.

Continuous upgrades in memory technology have created a structural imbalance in supply and demand. Nevertheless, memory supplier Winbond Electronics delivered strong earnings in the third quarter of 2025. General manager Pei-Ming Chen stated that some customers are even seeking DDR4 long-term contracts of up to six years, and this structural shift is expected to last through 2027.

China has escalated its campaign to reduce dependence on foreign technology. The country now requires all new state-funded data centers to use domestically produced artificial intelligence chips, according to Reuters. The regulatory directive impacts projects worth tens of billions of dollars.

Arm Holdings raised its revenue outlook on Nov. 5 after posting record quarterly results, citing a broad-based surge in demand for its technology driven by artificial intelligence.

Arm Holdings is positioning its energy-efficient chip designs as the essential solution to the global AI industry's growing power crisis, a strategy that fueled record quarterly results and a raised forecast.

At its most recent earnings call, MediaTek raised its forecast for the total ASIC market from US$40 billion to US$50 billion, reflecting surging demand for cloud AI ASICS. However, an increasing number of diverse companies are entering the ASIC market, intensifying the competition. Major clients have begun handling more of their own design work, shifting pricing power towards the customer. Overall profit margins for the ASIC business have shown signs of decline, but IC design companies still race to secure orders.