Taiwan’s auto parts makers pivot to high-tech as AI cooling, chip equipment demand surges

Taiwan’s automotive parts makers are accelerating their transformation into high-tech suppliers as the global expansion of advanced semiconductor capacity and AI server infrastructure creates new demand for precision-engineered components. Companies traditionally focused on powertrain, transmission, and safety systems are leveraging decades of manufacturing expertise to secure positions in semiconductor equipment and AI liquid-cooling supply chains, creating new growth engines beyond their core automotive businesses.

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Trump admin reportedly urged Apple to procure chips from Intel in exchange for dropping tariffs

Reports have emerged that Apple may have managed to avoid 100% tariffs imposed by US President Donald Trump, partly by agreeing to partner with Intel to manufacture its chips. While Apple could benefit from expanding its chip suppliers, the episode also shows the power of Intel’s government backing as the US seeks to reshore its semiconductor industry.

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Pegatron June revenue rose 15.9% on server shipments and AI expansion

Pegatron reported June revenue of NT$91.296 billion (US$28.43 billion), up 15.9% year over year and down 4.9% from May, as shipments increased on the gradual rollout of its new server business. The Taiwan-based electronics manufacturer said the business mix shift had helped deliver double-digit annual growth for two straight months, while management expects AI-related revenue to keep rising steadily in 2026.

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