As global industrial landscapes restructure, Taiwanese companies are making record investments in the US, driven by a strategic shift from cost-cutting to resilience in supply chain management. AU Optronics (AUO) chairman and CEO Paul Peng underscored the necessity for Taiwanese firms to transition from passive manufacturing bases toward leveraging the US as a critical market, innovation center, and capital platform.

Booming demand for artificial intelligence (AI) servers has fueled strong momentum for electronic manufacturing services (EMS) firms, with the surge also reflected in capital markets. However, performance has varied widely among companies. Pegatron chairman TH Tung said that his company's efforts over the past two to three years will pay off with triple-digit growth in 2026. He described the AI industry as entering a phase of aggressive expansion and expressed optimism that 2026 will be a year of unstoppable momentum.

Hyundai Motor is establishing a specialized parts procurement organization to build a scalable mass production system for its robotics business, focusing on securing the global supply chain of key components such as actuators. This strategic move aims to prepare Hyundai for future market demands in humanoid robots.

Honhai Precision posted strong revenue growth in the fourth quarter of 2025, driven by robust shipments of high-end AI servers and the launch of Apple's new iPhone generation. The company's quarterly revenue scale expanded significantly, with cloud networking products contributing notably to its top line. This marks a strategic shift for Foxconn from relying solely on consumer electronics toward a dual focus on both consumer devices and AI servers as key growth engines.

Tienpin United has officially transitioned from traditional life services to the AI sector, with its AI server cleaning business demonstrating strong growth momentum. The company reported that accelerating global demand for AI computing and data center deployments has driven interest in its liquid-cooling system-cleaning solutions from multiple mainstream clients.

LG Electronics India Limited has received an eligibility certificate from the Directorate of Industries, Government of Maharashtra, making the company eligible for incentives worth INR7.06 billion (approx. US$77.8 million) under the state's Electronics Policy 2016.

Pegatron is intensifying efforts in its AI servers business and expanding new ventures to sustain growth, according to statements from Co-CEO Gary Cheng. The company expects double-digit revenue growth in its automotive segment by 2026 despite cooling enthusiasm for electric vehicles (EVs).

Pegatron is poised to continue its strong expansion in the artificial intelligence (AI) server market as it enters its fourth year, with expectations of sustaining triple-digit revenue growth in 2026. Co-CEO Gary Cheng expressed confidence that the company's AI server segment will surpass its 2025 performance, aiming to double this year's growth rate.

At major international auto shows, sleek supercars and long-range electric vehicles are no longer the sole attractions. Increasingly, visitors encounter humanoid robots moving through exhibition halls and smart wearable devices synced in real time with driving data.

The Global Electronics Association's latest "2026 Electronics Industry Trend Forecast" highlights critical challenges and shifts that will impact the sector over the next few years. Chief among these are energy infrastructure constraints that are throttling AI expansion, a move toward strategic interdependence in regional supply chains, and advancements in packaging technologies that are transforming industry dynamics. These developments signal substantial changes in investment approaches, geopolitical relations, and manufacturing policies worldwide.

As the automotive sector pivots toward autonomous driving technologies, Taiwan's optics industry is rapidly evolving from a consumer electronics supplier into a critical player in advanced vehicle sensing systems. The transition reflects broader shifts in automotive design where cameras serve as fundamental sensory organs rather than peripheral accessories, driving new technical and commercial demands.

Kinpo Group held its annual year-end party on January 21, during which company chairman Jerry Hsu highlighted that US tariff policies in early 2025 had temporarily stalled the global consumer market. With Kinpo and AcBel Polytech's main product lines closely tied to consumer electronics, the company's operations faced significant pressure in the first half of 2025. However, as the market gradually absorbed the policy uncertainties, and with emerging demand from artificial intelligence (AI), memory modules, fuel cells, data centers, and server power supplies, operations began to show signs of recovery in the second half.

New Delhi has raised the basic customs duty (BCD) on imported flat panel displays to 20% while lowering duties on open cells and key display components to 5%, in a policy move aimed at strengthening domestic electronics manufacturing and correcting an inverted duty structure. India's Finance Ministry announced the changes as part of India's broader "Make in India" initiative, according to The Times of India, Hindu Business Line, and Z Business.

Kinpo Group's subsidiary AcBel Polytech officially launched a 1MW high-voltage direct current (HVDC) power system solution designed specifically for AI data centers during the group's annual celebration on January 21, 2026. The move reflects an increasing strategic focus on AI-related power products, which accounted for around 20% of AcBel's total revenue in 2025. The company aims to raise this share to 30% in 2026, indicating that AI data center power systems are becoming a core growth driver in AcBel's business portfolio.

Pan-International has outlined a significant strategic pivot following its joint acquisition with Foxconn Technology Group of Belgian axial flux motor manufacturer Magnax, indicating a move beyond its core wiring harness and precision components business into the humanoid robotics sector. The acquisition addresses a crucial gap in power system technology and is positioned as a foundational step toward Pan-International's broader ambitions in the robotics industry.

Taiwan's National Science and Technology Council (NSTC) convened its 19th committee meeting on January 21, 2026, bringing together senior executives from leading tech companies to address mounting concerns over renewable energy availability and pricing. TSMC senior vice president Lora Ho and Pegatron chairman Tzu-hsien Tung attended the session, where industry leaders pressed the government on critical energy policy issues.

Foxconn Industrial Internet (FII), a subsidiary of Foxconn (Hon Hai Precision), outlined ambitious plans to reposition itself as a key manufacturing platform within the global artificial intelligence (AI) industry chain during its 2025 year-end review and 2026 outlook employee mobilization meeting.

The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) held its annual year-end banquet on the evening of January 21, 2026, as industry leaders and senior government officials gathered to assess the challenges facing Taiwan's export-driven economy amid shifting global political and economic conditions.

Taiwan and the US have reached an agreement on a reciprocal 15% tariff for machine tools, eliminating stacked tariffs, a move anticipated to invigorate the sector in early 2026 after a challenging 2025. Industry leaders project increased investment from end customers, particularly in equipment procurement and advanced manufacturing technologies, driven by heightened semiconductor investments in the US market.

A global shortage of memory chips and rising prices are creating challenges in the electronics supply chain. Ray Chen, chairman of leading original design manufacturer (ODM) Compal Electronics, said that tight supply and price hikes in the memory market are expected to continue through 2027 and will have a significant impact on the global electronics industry.

At a year-end banquet on January 22, 2026, Kinpo Group president Rock Hsu paid tribute to Compal Electronics chairman Ray Chen, who is celebrating 50 years with the group ahead of Compal's 42nd anniversary in 2026. Hsu described Chen not only as a trusted business partner but also as a lifelong companion, highlighting Chen's exceptional dedication and leadership throughout decades of service.

The market for high-end quartz frequency control components is experiencing increased demand as AI infrastructure expands and automotive technologies advance. Growth in 2026 is expected to come largely from AI data centers and high-speed optical transmission modules requiring precise, low-jitter oscillators. At the same time, automotive applications such as smart cockpits and advanced driver-assistance systems (ADAS) are contributing to volume and pricing gains.

Lite-On Technology's board has approved a public cash tender offer at NT$54 (US$1.71) per share to acquire common shares of U-Media. The minimum acquisition target is 20% of U-Media's issued shares, with a maximum of 100%. A full takeover would cost approximately NT$2.03 billion.

Compal Electronics is anticipating a significant surge in AI server shipments beginning in 2026, following a projected revenue decline in 2025, according to chairman Ray Chen at the company's annual shareholder event on January 22, 2025. He described 2025 as an operational low point before the company's expected rapid recovery.

Despite the impact of US tariffs under President Donald Trump, Taiwanese companies continue to view China and Vietnam as vital manufacturing and investment destinations due to their cost advantages and integrated supply chains. While investment in China has declined, these countries remain central to Taiwan's global strategy.