Analysis: Singapore rises as SEA hub as Taiwan, China firms shift strategy

As global supply chains shift from globalization toward regionalization and the “China plus one” strategy persists, Singapore’s role in Southeast Asia has undergone a fundamental transformation. Once primarily a transshipment hub for trade, the city-state has evolved into a regional coordination and compliance center. Observations indicate that Taiwanese and Chinese companies are now utilizing Singapore to pursue distinctly different strategic approaches.

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Commentary: Is the SpaceX-xAI merger a brilliant strategic move or a heavy financial risk?

Tesla CEO Elon Musk has announced the merger of xAI and SpaceX, creating a new entity valued at an astonishing US$1.25 trillion. However, some have raised concerns that this bold strategic move may prove to be a financial yoke on SpaceX, especially since, from a technical standpoint, it makes more sense to merge xAI with Tesla than with SpaceX.

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TSMC spillover lifts Xintec testing orders, 2026 growth in sight

Xintec, the packaging and testing subsidiary of TSMC, held an investor conference in which Chairman CH Chen said full-year 2025 revenue maintained modest growth, driven primarily by a sharp increase in testing service revenue. However, high-margin optical diffractive element (DOE) packaging orders continued to decline after a 3D sensing customer adjusted its supplier strategy, putting pressure on overall gross margin and profitability.

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Taiwan’s renewable backup mandate fuels energy storage growth

Taiwan’s government has mandated that renewable energy power sellers and generators must maintain “backup power capacity” to address the issue of intermittency and its impact on grid stability. The requirement is set at 10% for offshore wind and 3.3% for solar photovoltaic (PV) systems. Energy storage providers note that storage systems will become a key operational pillar for power sellers, allowing them to both fulfill backup capacity obligations and participate in trading on the electricity market.

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MCU makers raise prices as packaging costs surge

The microcontroller unit (MCU) sector has emerged from inventory destocking in 2025, with the easing of US-China tariff tensions signaling a market recovery. Industry insiders expect improved demand and economic conditions in 2026 to drive growth momentum. However, rising wafer and packaging costs are pressuring manufacturers, prompting some to increase product prices to reflect higher packaging expenses.

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