Taiwan President Lai Ching-te has pledged to transform Taiwan into an “AI island,” with a key focus on developing an all-photonic network (APN). The National Science and Technology Council (NSTC) is acquiring APN technology from Japan’s NTT and collaborating with Chunghwa Telecom (CHT) and Accton Technology to advance this initiative. Industry experts say the APN is designed to support applications through low latency and enhanced computing resilience, in line with government goals for digital robustness and computing backup.

Although demand prospects for consumer applications remain relatively weak in 2026, major Taiwanese IC design companies focused on networking infrastructure chips — including Realtek Semiconductor and Airoha Technology — are still expected to deliver strong performances.

Luxshare Precision Industry reported first-quarter results with strong revenue growth and higher profit, while rising costs and negative operating cash flow underscored pressure on earnings quality.