SiPearl has powered on and begun validating Rhea1, its first-generation server CPU designed in Europe. Its next challenge is convincing Taiwan’s server manufacturers to turn the chip into systems that data centers can order and deploy.

Foxlink Texas (FTI), a subsidiary of Cheng Uei Precision Industry (Foxlink), officially opened its first artificial intelligence (AI) demonstration factory at AllianceTexas in Fort Worth, Texas, on July 14, marking the group’s first such facility in the US. The opening marks a key step in Foxlink’s transformation from a traditional electronic manufacturing services (EMS) provider to an AI factory operating model.

Taiwan plans to increase its technology budget by 6.2% in 2027 to accelerate investment in artificial intelligence (AI), space technology and net-zero innovation. The move is also meant to strengthen long-term industrial competitiveness through closer collaboration with the private sector.

Japanese industrial drone maker ACSL is open to expanding procurement from Taiwan as it strengthens its international supply chain strategy, with the company accepting an invitation to participate in the 2027 Taipei Aerospace & Defense Technology Exhibition (TADTE) during a visit by Taiwan External Trade Development Council (TAITRA) Chairman James C.F. Huang to ACSL’s R&D headquarters on July 15.

Taiwan’s drone industry has grown rapidly in recent years, with output surging from about NT$5 billion (US$154.87 million) in 2024 to NT$12.9 billion in 2025, while export value jumped from NT$140 million to NT$2.9 billion. Still, compared with semiconductors and electronics assembly, the drone sector remains small, making it critical for the industry to expand technology cooperation and secure government subsidies.

During its July 16 earnings conference, Taiwan Semiconductor Manufacturing Company (TSMC) offered an upbeat outlook on AI demand. Responding to competition from Intel’s EMIB advanced packaging technology, chairman and CEO C.C. Wei said TSMC’s CoWoS capacity remains “extremely tight” and welcomed the emergence of additional advanced packaging solutions to help customers alleviate backend manufacturing bottlenecks.