A slower US build-out of AI infrastructure after the Democratic Party's midterm sweep could cost China more economically than it gains strategically, Bloomberg Economics said, because the hardware export boom propping up China's growth this year rests on US data center construction.

Taiwan-based Primax Electronics plans to increase the share of its business-to-business (B2B) operations over the next five years, expanding beyond traditional PC peripherals into artificial intelligence (AI), smart security, automotive and robotics applications. With public safety and surveillance projects already secured through 2029, the company expects these higher-value businesses to underpin sustained double-digit growth.

The Democratic Party's sweeping victory in the US midterm elections has raised concerns that data-center construction and the broader AI supply chain could slow. However, supply-chain sources said that while opposition to data centers has intensified, AI development is unlikely to lose momentum because it has become central to national competitiveness, regardless of which party controls the US government.

Server chassis maker Chenbro Micom reported a 5.4% quarter-over-quarter decline in revenue for the third quarter of 2026, as inventory adjustments following aggressive customer pull-ins during the first half and shortages of key electronic components at the system level affected complete-system shipments. Chenbro said its full-year operating scale will still exceed that of 2026.

Sumitomo Bakelite reported a 47.2% year-over-year increase in attributable net profit to JPY19.561 billion (US$123 million) for the first half of fiscal 2026, as AI server demand drove growth in semiconductor packaging materials. Revenue and operating profit rose 22.7% and 57.9%, respectively, prompting the company to raise its full-year net profit forecast to JPY35 billion in late October.

Naver is preparing to launch its Nvidia-backed AI factory business after securing an infrastructure agreement with Brookfield worth up to US$9 billion. With OpenAI and Anthropic seen as potential customers for AI computing services in South Korea, the company now faces the challenge of securing contracts that can support its expansion and cover rising operating costs.

Samsung SDS has begun construction of a 60MW AI data center in Gumi, South Korea, to support industrial robots and other AI applications. The project marks the first concrete step under Samsung Group's KRW60 trillion (approx. US$44.7 billion) investment plan for the country's southeastern Yeongnam region.

As switch chips move toward 400G per channel, the gold-finger connectors used in current pluggable modules are approaching their high-frequency limits. The pluggable optics camp introduced two incompatible new form factors in 2026.

UK-based AI computing infrastructure startup Nscale, backed by Nvidia, is planning a US$35 billion initial public offering (IPO) in 2026. However, Microsoft, one of its major customers, has reportedly decided not to exercise an option to expand its computing capacity lease at a Texas data center.

Taiwanese server makers have committed billions of dollars to manufacturing facilities in Texas over the past two years. Now, the state's incoming governor has pledged to suspend new data center approvals, raising uncertainty over AI infrastructure investment in one of America's largest development markets.

Eight Taiwanese electronics manufacturers have disclosed approximately US$2.9 billion in factory-related asset transactions and investment plans in Texas since January 2024, accounting for nearly half of their US factory-site commitments.

Industrial PC (IPC) maker Advantech announced on November 5, 2026, that founder K.C. Liu will become full-time chairman on January 1, 2027, while Miller Chang, currently president of its Embedded Sector, will succeed him as CEO.

US voters favored restrictions on data center development in 40 of 41 local ballot measures across 10 states on November 3, signaling growing opposition to AI infrastructure expansion. Meanwhile, the election of a governor in Texas who has pledged to halt new data center approvals raises broader questions about the country's 345.9 GW pipeline of planned and under-construction projects.

Industrial PC leader Advantech reported record quarterly revenue and net profit for the third quarter of 2026, propelled by strong demand across semiconductor equipment, factory automation, and medical devices, alongside surging shipments of high-end edge AI systems. However, component price increases squeezed its gross margin down to 36.7%. Looking ahead, the company expects to maintain high-double-digit growth in both revenue and profit through 2027.

Goldman Sachs and Apollo Global Management have reportedly begun approaching potential investors about purchasing parts of a US$40 billion deal to finance SpaceX's leasing of Nvidia chips. The firms are seeking to complete the transaction quickly in the wake of Democratic victories in this week's midterm elections, which some worry could slow the growth of AI development.

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.

Qualcomm's weakening smartphone business is accelerating its transformation into an AI infrastructure supplier, with custom accelerators, server CPUs, and optical connectivity emerging as growth priorities. Following a 26% annual decline in handset chip revenue in fiscal 4Q26, the US chipmaker is targeting US$5 billion in data center revenue in fiscal 2027 and US$15 billion by fiscal 2029. The question is whether these businesses can scale quickly enough to offset pressures in its traditional market.

South Korean AI software developer Moreh says AMD Instinct MI355X GPUs running its inference software delivered more than twice the throughput of Nvidia B200 GPUs in company tests, as South Korea moves ahead with plans to build AI infrastructure combining AMD processors with locally developed chips.

South Korean cloud services provider Naver Cloud now runs AMD EPYC processors in about 35,000 servers and plans to deploy 144-core fifth-generation EPYC chips in its public cloud services in the second half of 2026. The company turned to AMD after high prices for Intel's higher-core-count processors slowed its server expansion.

Chinese AI developers are losing a key route to advanced US chips, renting them in data centers outside China, as Washington and US companies stretch American controls over compute well beyond US borders. The squeeze falls heavily on Southeast Asian data center operators that built capacity around Chinese demand. Beijing, meanwhile, is pressing its own tech giants to rely less on American hardware.

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.

Inventec reported October revenue of NT$79.97 billion (approx. US$2.44 billion), down 18.9% from September but up 46.0% from October 2025, setting a record high for the same period. Revenue for the first 10 months totaled NT$822.23 billion, up 43.1% year-over-year, also marking a record high for the period.

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.

Google's plan to invest US$15 billion in Malaysia over 2027 and 2028 deepens its bet on what AFP calls Southeast Asia's fastest-growing data center hub, and ties the expansion to commitments on power, water, and skills as Malaysian authorities scrutinize the facilities' demands on national resources.

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.