The US and Taiwan have reached a trade breakthrough that lowers reciprocal tariffs to 15% and applies most-favored-nation treatment without stacking, creating new momentum for Taiwanese technology companies to expand manufacturing and supply chain operations in the US. The agreement also formalizes a strategy known as the "Taiwan model," aimed at building localized industrial clusters rather than isolated overseas factories.
Industry speculation about collaboration between optics manufacturers and semiconductor companies to bolster their silicon photonics (SiPh) capabilities is gaining ground. Following Largan Technology chairman Enping Lin's comments during a recent earnings call, Asia Optical chairman I-Jen Lai confirmed that Asia Optical is also a potential participant in this trend.
As AI smartphones and AI PCs surge, end devices demand unprecedented memory bandwidth. Recently, Chinese interface IP provider Innosilicon announced that its self-developed LPDDR6/5X combo IP has successfully shipped to major customers.
Yageo, a major Taiwanese manufacturer of passive components, has informed customers it will raise prices on specific chip resistors (R-Chip) products starting February 1, citing escalating costs of silver, ruthenium, and palladium. The increase follows prior hikes in related components by Yageo subsidiaries KEMET and Pulse.
Below are the most-read DIGITIMES Asia stories of the week of January 12-18, 2026.
After months of trade negotiations, Taiwan and the US have finalized a reciprocal tariff agreement that lowers rates to 15% without stacking most-favored-nation (MFN) tariffs. The deal grants semiconductor products under Section 232 preferential treatment, expands supply chain investment cooperation, and establishes a credit guarantee fund totaling US$500 billion.
The US and Taiwan have formally concluded a tariff agreement that sets a 15% rate on covered goods, alongside a sweeping package of Taiwanese commitments aimed at deepening ties with the American semiconductor industry. Under the deal, Taiwan will make US$250 billion in direct investment in US semiconductor manufacturing, while its government will provide an additional US$250 billion in credit guarantees.
Acer and Lenovo are optimistic about India's consumer electronics sector as the global market slows due to rising memory prices.
As demand strengthens in markets such as GPUs and high-bandwidth memory (HBM), Japan-based Advantest said orders for semiconductor automated test equipment (ATE) remain stable, with average product lead times exceeding six months. The company expects that once the newly expanded assembly capacity is fully in place in 2026, order backlogs will be further alleviated.
OpenAI has reached a multi-year compute procurement agreement worth more than US$10 billion with AI chip startup Cerebras Systems, with the intention to enhance ChatGPT performance and reduce its reliance on Nvidia. According to The Wall Street Journal and Bloomberg, OpenAI said in a statement that it has committed to purchasing up to 750 MW of computing capacity from Cerebras by 2028. Contract terms were not disclosed, but people familiar with the matter said the deal value exceeds US$10 billion.
Taiwan's printed circuit board (PCB) industry is entering a new growth cycle fueled by a surge in cloud artificial intelligence (AI) computing orders. Manufacturers are ramping up capex sharply in 2026 to expand high-end server capacity and accelerate the transformation of AI-related products. Industry experts project total capital spending to reach unprecedented levels, led by several major firms making multi-billion-dollar investments.
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