Coherent is positioning itself as the optics supplier with no stake in the chip wars, two days after Marvell Technology agreed to acquire one of its closest rivals.

Flexium Interconnect chairman Walter Cheng said the company has emerged from the toughest operating downturn of the past two years and expects AI orders for smart glasses and infrastructure to accelerate in 2027, which is also expected to lower consumer electronics revenue to below 50%. The flexible printed circuit (FPC) maker expects its polytetrafluoroethylene (PTFE) products to enter mass production in 2028 and is targeting a return to profitability in the first quarter of 2027.

TECO Electric and Machinery is extending its motor and drive-control expertise into rotary actuators, developing joint modules for humanoid and quadruped robots through in-house motor, drive, and mechanical integration, alongside Taiwan-based reducer suppliers. The company said it has already shipped robot-dog joint products developed with Taiwan's Industrial Technology Research Institute (ITRI) and is now pursuing smaller joint modules while evaluating the dexterous-hand market.

Syntec Technology is actively advancing its global production capacity expansion and artificial intelligence (AI) technology deployment. The company announced on November 4 that its Suzhou Plant 2 in China, Malaysia Plant 2, and new facilities in India are expected to be completed and begin relocation in phases starting in February 2027. As the new sites gradually become operational, the company expects its overall capacity in 2027 to reach roughly 2.6 times its current level.

As concerns over AI deepen and negative headlines continue to emerge, companies across the AI server supply chain say customer orders remain strong. Industry sources said Nvidia GPU servers are entering a transition phase between old and new platforms. However, ASIC servers are filling the gap, supporting a positive outlook for the fourth quarter of 2026 as Nvidia's Vera Rubin shipments gradually ramp up in the first quarter of 2027.

Asia Optical Group reported record third-quarter profit for 2026 on November 4, as revenue reached approximately NT$7.846 billion (US$239.4 million), while gross profit, operating profit, and net profit attributable to owners of the company all hit new highs for the same period. The company is accelerating its co-packaged optics (CPO) and AI application strategy in Q4 2026.

Airoha, a MediaTek subsidiary, expects its optical communications business to deliver another multiple-fold increase in 2027 as 100G pulse-amplitude modulation (PAM4) digital signal processor (DSP) shipments ramp and its 200G product targets tape-out by the end of the year. The company also reported record quarterly revenue and profit in the third quarter of 2026, driven by its wired networking infrastructure and wireless edge AI businesses.

Marvell Technology and optical communications laser maker Lumentum announced on November 2 that they had signed a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction. Compound semiconductor maker GCS welcomed the deal, saying it will give Marvell's optoelectronics business a more complete product portfolio.

Supermicro expressed confidence to analysts during its earnings call for the first quarter of fiscal year 2027 regarding quicker turnaround times for orders and improved cash flow. The company cited greater demand for its Data Center Building Block Solutions (DCBBS), which accelerate data center infrastructure deployments, but kept a cautious full-year sales outlook to account for component shortages.

PC component maker Darfon Electronics is consolidating its production capacity in China and Southeast Asia, while simultaneously shifting some of its resources for IT peripherals toward components for AI data centers (AIDC), including structural components, thermal solutions, and battery backup systems.

Electronic components maker TDK will invest about JPY100 billion (US$633.5 million) to renovate an existing factory in Ojiya, Niigata Prefecture, Japan, and expand magnetic sensor production. The company aims to double capacity by fiscal 2030, which runs from April 2030 to March 2031, to capture demand from humanoid robots and other physical AI applications.

Japan's Mitsui Kinzoku has announced its third capacity expansion plan since the start of fiscal 2026 for MicroThin, its ultrathin copper foil used in optical communications equipment. The company is accelerating production expansion to meet sustained growth in market demand.

Metaage, a subsidiary of Qisda, posted consolidated revenue of approximately NT$19 billion (US$583 million) for the first three quarters of 2026, up 17% from NT$16.2 billion in the same period of 2025, as enterprise IT infrastructure, software, and cloud businesses expanded. The company is targeting AI infrastructure and cloud opportunities in 2027.

The Chung-Hua Institution for Economic Research (CIER) released Taiwan's purchasing managers' index (PMI) for October 2026 on November 2, showing continued expansion, with the outlook remaining optimistic. Notably, customer inventories in the manufacturing sector have stayed excessively high for two consecutive months, while the backlog of orders index fell to its slowest pace of expansion since January 2026.

Nuvoton expects its baseboard management controller (BMC) business to grow faster in 2027 than in 2026, driven by strong AI demand, higher orders from existing customers, and new customers entering mass production. The company said new customers, including cloud service providers (CSPs) and startups, will expand its BMC shipment base.

Murata Manufacturing announced plans to invest around JPY1 trillion (US$6.3 billion) in expanding multilayer ceramic capacitor (MLCC) capacity by 2030. Booming demand from data centers and AI applications has pushed up orders for MLCC makers. MLCCs are a crucial component in managing power demand.

Lite-On Technology will continue increasing capital expenditure in 2027 as cloud service providers (CSPs) pour money into the artificial intelligence (AI) infrastructure race, president Anson Chiu said. He warned that CSPs that stop investing to secure market share will pay an even higher price for falling behind in the irreversible AI era.

Radiant Opto-Electronics, a major backlight module maker, is expanding into new businesses and targeting next-generation optical communications architecture, particularly co-packaged optics (CPO) applications above 6.4T. Chairman and General Manager Yu-Chao Wang said the company plans to provide samples to selected customers in 2027 and could enter mass production as early as 2028.

Realtek Semiconductor quantified its AI business for the first time at an investor conference on October 29, setting a target for high-performance computing (HPC) and edge AI revenue—including automotive and robotics applications—to exceed 30% of total revenue by 2030. These businesses currently account for a high-single-digit percentage of revenue, as AI expands into infrastructure and edge devices.

Thailand-based precision sheet-metal manufacturer Jinpao Precision has entered the supply chain of a leading Thailand-based power-management company on the strength of its resilient manufacturing capabilities and highly adaptable product layout strategy. The company is accelerating its expansion in Thailand to capture growing AI demand as it furthers its efforts in high-end power cabinets, backup battery unit (BBU) systems, and energy-storage components.

Oracle will offer cloud services powered by Cerebras' AI computing systems in its cloud data centers starting in 2027, giving the wafer-scale chipmaker another major cloud customer. Although the companies did not disclose Oracle's planned Cerebras hardware purchases, the deal highlights the shift toward diversified AI compute resources as inference demand accelerates.

Delta Electronics expects fourth-quarter 2026 operations to improve from the third quarter, supported by artificial intelligence (AI) data center construction, said chairman Ping Cheng during an earnings call on October 29. However, material shortages are making customer construction and equipment delivery schedules harder to predict, prompting Delta to secure material supplies, maintain buffer inventory, and coordinate delivery plans with customers.

Nidec Corporation has provided an update on its ongoing efforts to resolve the grounds for the disclaimer of opinion issued on its financial statements, missing its initial target to submit restated reports by October 28, 2026. Despite completing several remedial measures, the company continues to address additional verification procedures requested by its independent auditor.

Parade Technologies expects fourth-quarter revenue to fall as notebook inventory digestion continues, underscoring pressure on the chipmaker's near-term results. The company is relying on high-speed connectivity, in-cell TTED, and ASIC-like products to offset weaker PC demand, rising manufacturing costs, and uncertainty over the timing of a market recovery in 2027.

SpaceX is expanding its AI computing infrastructure to meet rising demand for AI applications, securing US$40 billion in financing commitments for GPUs and equipment. The surge in neocloud orders is reshaping the order landscape for Taiwan original design manufacturers (ODMs), including Foxconn, Quanta, and Wistron, and could accelerate a move from traditional original equipment manufacturer (OEM) sales to direct ODM supply and, eventually, to the delivery of complete AI data-center systems.