Taiwan and the US signed the Agreement on Reciprocal Trade (ART) on February 13, 2026, capping 10 months of negotiations. The deal set a reciprocal tariff of 15% without stacking and secured Taiwan the most favorable terms yet under Section 232 for semiconductors. But the US Supreme Court's invalidation of most of President Donald Trump's reciprocal tariffs has since frozen the agreement. Taiwan's Executive Yuan cannot submit it to the Legislative Yuan for review, and the prospect of zero-tariff US car imports has stalled along with it.
Powered by surging semiconductor investment—led by TSMC—Taiwan's science parks are nearing full capacity, accelerating government efforts to expand land, infrastructure, and next-generation industry clusters.
Touch panel maker TPK is partnering with semiconductor packaging giant ASE to enter the advanced through-glass via (TGV) packaging technology sector, focusing on developing glass substrates for high-end computing ICs. This move marks TPK's expansion into advanced semiconductor packaging, aiming to become a new long-term growth engine. TPK has invested about NT$500 million (US$15.7 million) in capital expenditure for this initiative. Its pilot production line in Zhongli is scheduled for completion in July 2026, with sample delivery and validation set to begin shortly thereafter.
As AI data centers officially enter the silicon photonics (SiPh) era, the industry faces severe challenges in testing accuracy and throughput on the path toward mass production of co-packaged optics (CPO) technology. This has drawn close attention to upstream test supply chain dynamics.
AI demand is squeezing global DRAM supply to the point where the PC market is turning back to decade-old technology. Shortages in DDR5 and DDR4 have pushed prices high enough to revive DDR3 platforms, with Fnnews reporting that Colorful Yugong Technology (formerly Seethru Co.) will restart limited production of Intel H81 motherboards in May to target low-cost PC builds.
India is advancing its semiconductor ecosystem via design alliances and acquisitions, while recalibrating its China ties. IndieSemiC and Kaynes target local chip gaps despite uncertain demand, and Cyient's Kinetic deal boosts power IC capabilities. Meanwhile, security-driven supplier shifts and new export opportunities highlight India's evolving strategic and industrial positioning.
The semiconductor industry is undergoing coordinated shifts that could reshape equipment flows, corporate financing, and supplier relationships in the AI era, according to DIGITIMES analyst Luke Lin.
SAS Group's strategic shift into renewable energy, AI-related semiconductor materials, and automotive components signals growing resilience for global energy and tech supply chains, offering long-term recurring revenue through integrated hardware and service platforms and enhanced worldwide positioning for geopolitical robustness.
Nan Pao Resins Chemical Group reported a historic revenue high for March, reaching NT$2.4 billion (approx. US$75.3 million), up 17.4% year-over-year, fueled by raw material price fluctuations and customers' proactive stockpiling ahead of expected product price hikes. The company also achieved a record first-quarter revenue of NT$5.8 billion in the first quarter of 2026, supported by ongoing new product development and successful expansion into new customer segments.
The Chip-based Industrial Innovation Program (Taiwan CBI), a decade-long, NT$300 billion (US$9.4 billion) initiative launched by the Executive Yuan to support academic and research institutions in acquiring costly semiconductor equipment, has begun to achieve initial results. According to a report from the National Science and Technology Council (NSTC), over 200 key semiconductor-related devices are now available to provide regular fabrication and implementation services, becoming a major boost for training advanced IC design talent.
US lawmakers from both parties have recently introduced a new bill aimed at further restricting China's access to advanced semiconductor manufacturing equipment. The move seeks to strengthen efforts to curb China's ambitions in semiconductor development and to achieve closer alignment with allies such as the Netherlands and Japan on export controls.
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