China's drive for technology self-sufficiency is transforming the communications supply chain. Shenzhen-based Lightstar Technology expects localization of advanced optical passive components to reach record levels within the next five to ten years, with imports of specialty materials giving way to domestically produced alternatives as Beijing's push for homegrown innovation accelerates.

Taiwanese test interface manufacturer CHPT showcased its latest innovations at SEMICON Taiwan 2025. Besides unveiling a comprehensive upgrade solution centered on "AI-driven probe card technology," President Scott Huang highlighted the technical challenges that advanced process chips—such as mobile application processors (AP) and high-performance computing (HPC) chips used in AI applications—pose to the IC testing supply chain.

Taiwan-based passive components manufacturer Yageo Corporation announced on September 11 that it plans to acquire up to 28.5% of power IC designer Anpec Electronics via a public tender offer set to commence shortly. The bid values Anpec shares at NT$229.8 (approx. US$7.6) each, a 20% premium over the current price, with the total investment estimated at around NT$4.8 billion.

Jochen Hanebeck, CEO of Infineon, emphasized the concept "no AI without power" during his keynote speech at the SEMICON Taiwan 2025 Master Forum. Power semiconductors play a critical role across all AI application scenarios, whether in cloud AI data centers or edge physical AI applications such as electric vehicles (EVs) and robotics. Advanced power semiconductor technology is essential to improve energy efficiency and better meet real user demands.

The China International Optoelectronic Exposition (CIOE) and SEMI-e 2025 Semiconductor Innovation Exhibition kicked off in Shenzhen on September 10, underscoring the laser industry's growing role in China's drive for AI sovereignty, defense technologies, optical communications, robotics, and immersive devices from AR to MR.

In 2024, the Taiwanese government announced the launch of a 10-year NT$300 billion (approx. US$9.89 billion) Taiwan Chip-based Industrial Innovation Program (Taiwan CbI), marking an unprecedented scale compared to earlier initiatives. National Science and Technology Council (NSTC) minister Cheng-Wen Wu stated that the Taiwan CbI program will comprehensively strengthen the global competitiveness and resilience of Taiwan's semiconductor industry supply chain.

LCY Chemical is actively expanding into the electronic materials market in its 110th year since the company's founding in 1915. According to CEO Vincent Liu, the company's electronic materials segment currently accounts for roughly 12% of total revenue, with a compound annual growth rate of 26%, significantly higher than the industry average of 7%. Going forward, the company plans to deepen its material portfolio to target demand related to the semiconductor, AI, high-speed communications, and next-generation display industries.

Japanese measurement leader Horiba Ltd., active in Taiwan for nearly 30 years, has opened a new Application and Solutions Platform (ASP) instrumentation lab at its Hsinchu headquarters. The facility is designed to boost Horiba Taiwan's technical services and reinforce its position in the global semiconductor and AI value chains.

Everlight Electronics is ramping up its push into third-generation semiconductors, highlighting new research and market strategies in SiC and GaN at SEMICON 2025. The company emphasized three pillars of its expansion: competitive pricing, rapid delivery, and high-quality service, positioning itself to capture a stronger share of the next-generation materials market.

Zhen Ding Technology Group (ZDT), the world's largest printed circuit board (PCB) manufacturer, returned to SEMICON Taiwan 2025 to highlight how the AI boom is reshaping PCBs from passive circuit carriers into critical enablers of computing power. Chairman Charles Shen said AI-driven advanced packaging is emerging as a core growth engine for the industry, adding that with chip complexity rising and 3D packaging gaining ground, PCBs now play a decisive role in unlocking full processing performance.

Industrial PC (IPC) companies have begun releasing their revenue figures for August 2025. Despite challenges from the global high-interest-rate environment and geopolitical tensions, overall performance continues to demonstrate resilience through regional and application expansion. Beyond ongoing development of integrated hardware-software solutions, emerging demands in military, edge computing, and semiconductor automation are becoming key strategic focuses for these companies.

Driven by the growing demands of artificial intelligence (AI) and hyperscalers, advanced process technologies are accelerating innovation cycles. The supply chain indicates that in 2025, the advanced packaging industry landscape will officially enter an era dominated by three distinct powers: foundries, OSATs, and PCB manufacturers. This shift presents a rare triple growth opportunity for upstream equipment suppliers.

Soaring demand for AI computing is ushering the semiconductor sector into a fresh cycle of high-speed growth, pushing advanced packaging requirements to new heights. From infrastructure expansion to end-user applications, the ecosystem now relies heavily on precision technologies, with chip-on-wafer-on-substrate (CoWoS) processes at the forefront.

Speaking ahead of SEMICON Taiwan 2025, Globalwafers chairperson Doris Hsu said competition in semiconductors is shifting from process nodes and capacity to control of critical materials and supply-chain resilience, which she argued will decide future industry leadership.

Industrial PC (IPC) manufacturers have been actively expanding into new application markets in recent years, optimistic about the semiconductor industry's growing demand for full-process automation. Taiwan-based IPC maker Aplex Technology is strengthening its software capabilities in the semiconductor sector through investment in Adirtek. By also joining TSS Holdings, Aplex aims to leverage its comprehensive product lineup—including AI IPCs, human-machine interfaces, embedded hosts, edge computing, and AI software operation platforms—combined with Adirtek's system-level competitiveness to jointly penetrate the semiconductor industry supply chain.

The 26th China International Optoelectronic Exposition (CIOE) will take place September 10–12, 2025, at the Shenzhen World Exhibition and Convention Center, alongside the International Semiconductor Exhibition & IC Industry Innovation Expo 2025 (SEMI-e). DIGITIMES will provide on-the-ground coverage in Shenzhen, with simultaneous English reporting on DIGITIMES Asia.

SEMICON Taiwan 2025 will take place from September 10 to 12, 2025, at the Taipei Nangang Exhibition Center, bringing together over 1,200 global semiconductor and technology companies across 4,100 booths. The event is projected to attract more than 100,000 visitors, setting a new record in scale.

As the four major cloud service providers (CSPs) aggressively ramp up their presence in the AI computing market, Taiwan's printed circuit board (PCB) industry is experiencing a clear shift in demand. By 2025, orders for traditional servers are expected to give way to AI server demand, driving full-capacity utilization at leading server board makers such as Gold Circuit Electronics (GCE), Allied Circuit (ACCL), and First Hi-tec Enterprise (FHt).

As demand for AI servers drives full production capacity, PCB manufacturer Gold Circuit Electronics (GCE) announced on September 5, 2025, that its board of directors approved a NT$1.6 billion (approx. US$52.4 million) investment to acquire an idle factory in Zhongli from optical disc maker CMC Magnetics (CMC). This site will serve as the company's reserve base for future capacity expansion in Taiwan.

Japan's semiconductor materials suppliers are racing to expand capacity as the AI data center build-out drives unprecedented demand for advanced chips and packaging inputs. Nikkei reports that Asahi Kasei will invest JPY16 billion (US$108 million) to double production of PIMEL, its photosensitive insulating material used in GPUs and other high-end semiconductors, by fiscal 2030.

As the second half of 2025 ushers in the peak season for consumer electronics, Taiwanese PCB suppliers are preparing for new product launches from key clients like Apple. Despite ongoing global tariff disruptions, industry participants indicate that third-quarter stocking patterns remain largely consistent with previous years, with an expected operational improvement compared to the first half of the year.

Despite facing global end-market inventory adjustments and rising geopolitical uncertainties, Taiwan's printed circuit board (PCB) supply chain is shifting its capital expenditure atmosphere to accelerate positioning in emerging markets such as AI servers and high-performance computing (HPC). Led by global PCB leader Zhen Ding Tech and IC substrate giant Unimicron, these companies have announced expanded investment plans, betting on advanced AI applications and capacity layout in Southeast Asia.

In early 2025, a leading Chinese third-category silicon carbide (SiC) substrate manufacturer faced international IDM customer complaints over product quality, triggering market concerns and cautious responses. Despite challenges abroad, the company refocused on China's domestic market, maintaining stable growth amid intense local price competition.