Taiwan’s digital economy has reached an annual output of NT$800 billion (approx. US$24.36 billion) and is projected to surpass NT$1 trillion by 2026, driven by the rapid expansion of AI applications, according to Yen-nun Huang, Minister of the Ministry of Digital Affairs (MODA). However, at a press conference on February 10, Huang expressed concerns that recent budget cuts to government subsidies could hinder this growth.

Apple’s iPhone revenue has fallen short of market expectations, slipping slightly year-over-year. The downturn is sending shockwaves through the mobile power amplifier (PA) sector, with Skyworks—a key IDM—losing ground in Apple’s latest iPhone lineup. The shift is rippling across Taiwan’s chip supply chain.

Panel procurement momentum, which began in the fourth quarter of 2024, continues to strengthen in 2025, driven by four major factors. Industry experts believe that the first quarter of 2025 could see a strong off-season, while the second quarter remains uncertain. The market outlook for the second half of 2025 appears challenging, as inventory accumulation in the first half could potentially weaken the traditional peak season.