Taiwanese electronics makers are deepening their presence in Mexico's Chihuahua state, drawn by surging US demand for AI servers, officials and business leaders told a seminar in Taipei on October 19. The pace of foreign investment is driven by the state's access to the US market, even as Chihuahua seeks to transition from a manufacturing base into a research and design hub.
The 2026 OCP Global Summit, held from October 12 to 15 in San Jose, California, highlighted a shift from open server hardware to open AI infrastructure. Rack-scale standardization is now expanding into system-level co-design for AI factories.
China's precision manufacturing giant Lens Technology is expanding into AI server infrastructure through a proposed US$25 million acquisition of a controlling stake in PMG International, gaining access to server rack manufacturing and liquid-cooling technologies. The transaction marks a further diversification beyond the company's established consumer electronics and automotive components businesses.
Taiwan-based iBase Solution is expanding from industrial computers (IPCs) and energy storage into liquid-cooled prefabricated modular data centers, targeting AI infrastructure construction and engineering, procurement, and construction (EPC) contracts. The company aims to leverage its energy storage expertise, system integration capabilities, and customer relationships to capture opportunities in power, cooling, and data center development as global AI investment grows.
OpenClaw is drawing renewed attention after Nvidia CEO Jensen Huang endorsed the open-source AI agent framework as a foundation for future technology, especially robotics. His remarks also highlighted the security challenges of autonomous systems, including behavioral drift, and Nvidia's efforts to contain agents through sandboxing, permissions, monitoring, and hardware-based controls.
Artificial intelligence data-center expansion is intensifying a global race for electricity, as cloud providers increasingly prioritize how quickly power can be secured over cost and decarbonization. As grids struggle to keep pace with computing growth, companies are considering on-site generation, batteries, and direct-current systems to speed deployment while managing emissions and efficiency.
TECO Electric and Machinery chairman Morris Li said the company has entered the final stage of testing its modular data center (MDC) solution. The company is targeting opportunities in the artificial intelligence (AI) data center market and seeks to help customers complete construction projects in nine months.
SEMI's latest 12-inch fab outlook projects double-digit annual growth in equipment spending from 2026 through 2029, with forecasts revised upward from its previous edition. However, Clark Tseng, senior director of market intelligence at SEMI, said external constraints involving funding, electricity, and politics are emerging as potential downside risks. He added that this could prevent the AI-driven expansion from overheating.
Taiwan's National Science and Technology Council (NSTC) has opened applications for the country's second five-year quantum technology program lasting from 2027 to 2031, with international collaboration being a main focus.
TECO Electric and Machinery participated in Energy Taiwan on October 14, showcasing its smart microgrid solutions and outlining the future development of its power and energy business group.
Singapore is moving its AI strategy beyond pilot-heavy experimentation toward a more deployment-focused model centered on enterprise adoption, sector transformation and resilient access to compute.
On October 15, network equipment maker Gemtek Technology announced a strategic partnership with Starman New Photonics, a subsidiary of Starman Holdings, to form a joint venture in the US. The new entity will manufacture advanced optical transceivers to capture demand for optical interconnects driven by hyperscale AI data centers.
Supermicro Computer has appointed Mark Long as chief financial officer, bringing an experienced technology finance executive to lead the company as it expands its artificial intelligence and IT infrastructure operations. The leadership change at the US-based company could influence its financial execution, capital allocation, and ability to serve customers across markets.
Chun Yuan Steel expects Taiwan's auto market to deliver its strongest quarter of 2026 in the final three months, lifting full-year new-vehicle sales to 430,000 units from 411,000 in 2025. The steel processor also anticipates fresh growth opportunities as Kuozui Motors begins exporting finished vehicles to Japan, potentially strengthening Taiwan's position in Toyota Motor's global production network.
A sharp sell-off across artificial intelligence infrastructure stocks has turned a quiet worry about debt into a main concern for Wall Street. The sudden drop in stock and bond prices for CoreWeave, a fast-growing cloud provider backed by Nvidia, has raised questions about whether the heavy borrowing used to fund the AI expansion is becoming too risky.
Singapore-based data center developer DayOne has secured an additional MYR15 billion (US$3.67 billion) in financing from a consortium of seven banks to expand hyperscale data center capacity in Johor, Malaysia, Reuters reported on October 13, 2026. Together with MYR15 billion in multicurrency financing secured in 2025, the platform now stands at MYR30 billion, according to a joint statement from the lenders cited by The Business Times.
Investment in AI data centers remains strong, but semiconductor growth is becoming increasingly concentrated in cloud AI, while the long-running decline in consumer technology prices has come to an abrupt halt. At a SEMICON West 2026 industry outlook session, Duncan Meldrum, an economist at Hilltop Economics, warned that the shift is putting additional pressure on the broader semiconductor market.
AI is clearly making an enormous impact on the global economy, with capabilities extending from language chatbots to agentic teams and the physical realm within just a few years. A new report by consulting firm Bain takes stock of AI's effects on businesses so far and projects how it could shape the near future.
Taiwan's optical communications suppliers posted a sharp revenue increase in September 2026, far outpacing major power supply manufacturers in percentage growth as demand for faster data center connectivity continued to expand. The six optical suppliers tracked by DIGITIMES reported combined revenue of NT$3.73 billion (approx. US$116 million), up 90.2% year-over-year and 16.4% from August.
Qualcomm has historically provided standard chips primarily through its Snapdragon product line, serving a broad range of end customers. After officially launching its Dragonfly data center product line in June 2026, the company expanded its business to include multiple hyperscalers.
Anthropic plans to place new data centers in Australia away from densely populated areas, using renewable energy and previously developed sites to reduce conflicts with residents. The US artificial intelligence company is evaluating proposals from state and local governments competing for its investment, while expanding computing capacity in the country.
Optical communications maker Luxnet reported a September 2026 net profit attributable to parent-company owners of NT$103 million (US$3.21 million), up 110.2% year-over-year, with earnings per share (EPS) of NT$0.72. September EPS exceeded half of the second-quarter 2026 EPS of NT$1.29, signaling strong momentum in the second half of the year.
Taiwan's connector and server-chassis suppliers posted broadly higher September revenue, although their growth trajectories differed. Seven of eight tracked companies recorded annual gains for both September and January–September 2026. BizLink, AIC and Chenbro had already exceeded their full-year 2025 revenue, while Argosy remained below last year's levels.
Kaga Electronics and AI infrastructure provider StarSeeds have signed a basic contract manufacturing agreement to produce AI servers at a partner facility in Japan, targeting mass production in December 2026.
