China smartphone shipments fell 5.5% year-over-year in the first half of 2026 even as 5G handset shipments rose 1.7%, according to the China Academy of Information and Communications Technology (CAICT). The shift came as Oppo, Vivo and Xiaomi cut lower-end models amid higher memory and other upstream component costs, pushing 5G devices to 92% of total shipments.

The 2026 Open Compute Project (OCP) APAC Summit will be held in Taipei on August 11-12, bringing together global cloud service providers (CSPs), semiconductor firms, silicon photonics (SiPh) players, system makers and many Taiwanese suppliers to share the latest developments in compute architecture. Ayar Labs CEO Mark Wade, who will attend the event and spoke with DIGITIMES ahead of the summit, said Taiwan’s supply chain is critical to the development of co-packaged optics (CPO) and that scale-up deployment is on track to ramp up 2028-2029.

Fositek said AI-driven demand increased the share of server-related products in its revenue mix in the second quarter of 2026 and helped improve profitability even as overall sales declined during a product transition period. The Taiwanese supplier said server-related products accounted for 55.7% of first-half revenue at the end of the quarter, up from 19.2% a year earlier, while it prepared to expand manufacturing in China and Vietnam.

Adlink reported record second-quarter 2026 revenue of NT$4.459 billion (approx. US$138 million), lifted by demand in AI edge computing and intelligent edge applications. The industrial PC maker said it will keep expanding in healthcare, semiconductor automation, robotics, and new energy as it pushes deeper into edge-based AI markets.