While electronics suppliers maintain cautious optimism about US President Donald Trump's tariff policies, growing concern exists that Southeast Asia could become the next target for increased trade measures.
Artificial intelligence (AI) and data center demand are emerging as key performance drivers for Japanese electronic component makers such as Murata Manufacturing, while performance in areas such as automotive and smartphones remains mixed.
Chicony Electronics saw its January revenue bolstered by AI applications, despite the notebook market entering its traditional off-season. With the upcoming launch of gaming laptops featuring next-generation GPUs, the company anticipates resuming monthly revenue growth by February, driven by increasing demand for high-wattage power supplies.
Since taking office in January 2025, US President Donald Trump has pushed policies that could become the biggest wild card for the global economy through 2025. His administration's first move was to impose tariffs, with shifting timelines keeping businesses on edge. In recent years, the US has overtaken China as Taiwan's top machinery export market, stirring mixed reactions. While Trump's pro-manufacturing stance may shift orders Taiwan's way, tariffs could bring unavoidable indirect impacts.
Tariffs initiated by US President Donald Trump may soon extend to Taiwan, potentially driving up costs, triggering supply chain shifts, and reshaping market dynamics, according to sources at Taiwan-based IC distributors.
Component manufacturers foresee that the emergence of DeepSeek may attract the interest of additional enterprises engaged in innovative AI applications, stimulate the advancement of further AI application services, and accelerate the dissemination of AI applications within edge devices.
President Donald Trump agreed to delay 25% tariffs on Canada and Mexico for a month after both US neighbors agreed to take tougher measures to combat migration and drug trafficking at the border, warding off a continental trade war for now.
According to Bloomberg Intelligence (BI) economists Chang Shu and David Qu, the latest 10% tariff hike on Chinese goods shifts the next move to Beijing. Signed by President Donald Trump on February 1, 2025, and effective February 4, 2025, the decision leaves little room for last-minute negotiations. Given Trump's hardline stance and Beijing's vow to retaliate, a reversal appears unlikely.
The top 20 EMS/ODM companies in 2024 include 9 from China, 7 from Taiwan, and 4 from North America, ranked by revenue. However, if we analyze these companies based on profit and profit margin, what insights might emerge?
China has been reported frequently to illegally acquire technology from South Korea in the field of artificial intelligence (AI) semiconductors and displays in the past few years. Moreover, with the advancement of South Korea's neural processing units (NPU), Chinese semiconductor firms have been actively recruiting engineers from South Korean companies or attempting to steal core technologies.
The past year has been one full of ups and downs for Taiwan's machinery industry: aside from products and components related to AI and semiconductors, most other product lines remained relatively lackluster in 2024. The machinery sector is pinning its hopes on emerging industries, of which robotics is commonly viewed as a leading growth driver, with numerous tech leaders highlighting its importance. However, due to limited layouts in the field at present, Taiwanese companies generally saw little revenue from robotics in 2024.
Google invested US$ 250 million in the acquisition of HTC Vive's R&D team, highlighting its ambitions in the headsets and smart glasses sectors. Regarding this acquisition, Google Taiwan has reportedly begun a small-scale organizational restructuring, reallocating personnel from its smartphone and tablet divisions to support new product development.
Six Taiwanese companies rank among the top ten global Electronics Manufacturing Services (EMS) providers for 2024, with Foxconn, Quanta, Wistron, and Inventec hitting record revenues, fueled by surging AI server demand. Despite ongoing supply constraints, AI servers are poised to further boost operational performance in 2025, with consumer electronics also expected to recover after years of inventory adjustments.
Sanan Optoelectronics has secured a critical role in Samsung Display's microLED smartwatch supply chain, according to industry insiders, marking another milestone in its consistent progress with microLED technology.
A major legal battle between Cambricon Technologies, a leading Chinese AI unicorn, and its former CTO Jun Liang has emerged, drawing parallels to the recent high-profile lawsuit involving Jeng-wu Tai, a former aide to Foxconn founder Terry Gou. The case centers on claims of unfulfilled employee incentives that could set new precedents in China's tech industry.
Highpoint Service Network (HSN), Acer's subsidiary specializing in brand repair services, has achieved record-breaking annual revenues since its establishment in 2018. The company's robust growth is anchored by three key pillars: expanding its geographical reach, servicing more brands, and diversifying product categories. CEO Jacky Lin anticipates continued growth, forecasting a revenue increase of at least 30% in 2025.
Sharp Corporation is set to announce its fiscal 2024 growth strategy during its earnings presentation in May 2025, covering the period from April 2024 to March 2025. However, key elements of this strategy, such as the CEO-led Innovation Accelerator Project (I-Pro), are already taking shape through ongoing initiatives.
Asia Tech Image Inc. (ATII), an Asia Optical subsidy specializing in imaging sensor modules, reported record-breaking revenue for 2024 and outlined its growth strategy for 2025, focusing on diversifying product applications and technological advancements.
The optics industry saw robust growth in general in 2024, with leading players Largan Precision, Genius Electronic Optical (GSEO), and Asia Optical all posting strong results for the year. Moreover, the field of robotics has emerged as a new battleground for the industry.
Apple is reportedly set to launch a screen-equipped HomePod in 2025, though contrary to earlier speculation about OLED technology, it will feature an LCD panel exclusively supplied by Tianma Microelectronics in China. Taiwan's Radiant Optoelectronics will handle backlight module production. Industry insiders expect shipment volumes to remain modest throughout 2025.
During the inauguration ceremony of SPIL on January 16, Nvidia founder and CEO Jensen Huang stated that the Blackwell system has now fully entered production, which will gradually enhance CoWoS-L capacity. He further stated that "physical AI," the combination of AI and robotics, presents a significant opportunity for Taiwan.
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.
