Taiwan's Ministry of Economic Affairs (MOEA) has indicated that US President Donald Trump's most significant tariff policies are still pending announcement. A recent MOEA survey on Taiwanese manufacturers' export strategies revealed that only 8.9% have taken proactive measures to address potential US protectionist policies, while the majority maintain an observing stance.

HTC and Google have struck a major deal in the XR field, with Google agreeing to pay HTC US$250 million. Under the agreement, a portion of HTC's XR R&D team will join Google, and HTC has granted Google a non-exclusive license for its XR-related intellectual property while retaining the right to continue developing and using these technologies.

In response to US President Donald Trump's tariff policy, Pegatron chairman T.H. Tung stated that the company's Mexico plant is still on schedule and will commence production in April.

Pegatron chairman T.H. Tung has expressed optimism regarding President Donald Trump's series of executive orders issued on the first day of his second term, ranging from immigration to climate and energy. Tung observed that while the actions aligned with expectations, certain aspects showed incremental improvements.

The US is set to enhance its AI infrastructure under President Donald Trump's administration, with Taiwan-based server manufacturers Foxconn and Mitac positioned to capitalize on increasing demand.

Under mounting US sanctions on AI chips, Chinese domestic GPU companies are accelerating development and entering capital markets to strengthen their position. In a significant move, Chinese GPU maker MetaX has completed its listing guidance filing and officially launched its IPO process, while Moore Threads has also completed its filing. These developments highlight the resilience of China's GPU industry despite increasing pressure from US restrictions.

On January 15, Mitsubishi Electric unveiled its updated R&D strategy, highlighting its commitment to advancing technologies like electronic-photonic converging integration (EPCI) besides an increased investment of JPY100 billion (approx. US$6.4 million) in R&D from the fiscal year 2024 to 2030, a 1.7-fold increase over its initial plan. This investment will be funneled into collaborations between industry, academia, and government, supporting efforts to create game-changing technologies.

Export orders from Taiwan are expected to decline significantly in January 2025, with the Ministry of Economic Affairs (MOEA) forecasting values between US$44.5 billion and US$46.5 billion. This represents a month-over-month decrease of 15.9% to 12.1% and a year-over-year decline of 8.1% to 4%.

Server ODMs are swiftly establishing manufacturing facilities in the US to mitigate the impact of geopolitical uncertainties, with Texas emerging as a favored location, according to industry sources from Taiwan.

Over the past four years, the Biden administration has worked to reduce reliance on China's supply chain through initiatives such as the Quad, which has benefitted countries like India. However, US President Donald Trump's focus on addressing the US trade deficit could impact India's fast-growing electronics supply chain, particularly in the smartphone and solar energy sectors.

In a significant move into the AI server market, Pegatron has successfully delivered its first GB200 server rack to Lambda Labs, a US-based cloud service provider (CSP). The company has also announced an NT$600 million (US$18.3 million) investment in the innovative CSP.

The US is anticipated to impose a 25% tariff on Mexico starting February 1, 2025, as proposed by the newly inaugurated President Donald Trump, prompting automotive electronics manufacturing services (EMS) manufacturers to emphasize their need for production flexibility and mobility.

Foxconn Group (Hon Hai) is positioning itself for expanded AI applications and regionalized production in 2025, with projections to surpass NT$7 trillion (US$214.38 billion) in annual revenue, according to company sources.

Taiwan's machine tool sector struggles to keep pace with its AI-driven export growth, as mounting geopolitical challenges and unfavorable exchange rates continue to impact its performance. While other major export industries benefit from the AI boom, industry leaders call for government intervention to address competitive disadvantages against regional rivals.

Industrial PC (IPC) provider, Aplex's overall performance in 2024 did not meet initial expectations. However, with new products such as edge AI gradually coming into play, along with the resumption of previously deferred projects and the addition of new ones, Weida's General Manager Ze-ying Liu stated that the internal goal is to return to the level of 2022, and then aim for further growth.

India-based EMS supplier Dixon Technologies reported significant increases in sales and profit over the past quarter, driven by a doubling in mobile phone manufacturing sales following acquisitions, such as Ismartu's Indian assets. Additionally, the company, having established a display assembly factory with China's HKC, plans to capitalize on the India Semiconductor Mission 2 to build a display fab.

Recent reports revealed that some companies are facing delays in exporting production line equipment, prompting businesses to temporarily suspend customs procedures, which leads to growing concerns across the supply chain.

Major Taiwan-based ODMs including Hon Hai (Foxconn), Quanta, Wistron, and Inventec enjoyed record-high sales in 2024, buoyed by robust AI server sales, while revenue at Pegatron and Compal fell due to a lack of exposure to AI.

The e-paper industry is rapidly transitioning from monochrome to color panels, stimulating a trend of device upgrades. The year 2024 marked the beginning of the color e-reader era, with Amazon launching its first color e-reader and Walmart, the leading retailer in the US, implementing electronic shelf labels nationwide. These developments drove significant growth for E Ink Holdings (EIH) and EIH's subsidiary, Netronix. Looking ahead, 2025 is expected to see the rise of color e-paper billboards, promising another year of growth for both companies.

Unfavorable winds in the general economy led to an overall downturn among industrial PC (IPC) manufacturers in 2024, with even traditional powerhouses like Advantech seeing a 7.43% decline in annual revenue. However, most IPC companies share a positive outlook for 2025, as political and economic stability and other external factors promise to benefit developments across the industry.

The mobile phone ODM industry continues to grapple with significant challenges, including pressure from both suppliers and customers, while being characterized by labor-intensive processes and low profit margins. In response to persistent losses, leading companies like Huaqin and Wingtech have begun pursuing new growth opportunities.

LG Electronics has embarked on a strategic transformation in 2024, shifting its focus toward non-hardware businesses and B2B operations. The company has enhanced investments in automotive parts, heating, ventilation, and air conditioning (HVAC), embedded appliances, commercial displays, and the webOS platform. Through this strategic pivot, LG aims to achieve over 7% growth in revenue, operating profit margin, and EBITDA.

New players are joining the supply chain competition as China's major memory chip manufacturers have rapidly developed. It seems to challenge the market positions of Samsung Electronics, SK Hynix, and Micron Technology.

As global manufacturing continues to shift away from mainland China, companies with established operations in Southeast Asia are seeing major opportunities emerge. Tony Chou, managing director of Cal-Comp Electronics (Thailand) (CCET), emphasized that while the current environment presents favorable conditions, maintaining readiness for various changes remains crucial.

Jeng-wu Tai, retired vice president of Hon Hai (Foxconn) and ex-CEO of Sharp, has taken legal action against his former employer and Terry Gou, the founder of Hon Hai, over an alleged breach of an incentive agreement. Once a trusted lieutenant of Gou, Tai now seeks legal recourse to address the dispute, which centers on unfulfilled bonus payments tied to Sharp's performance during Gou's tenure as Hon Hai's chairman.