Most-Read DIGITIMES Stories: February 16-22, 2026
Pentagon Withdraws 1260H List: A Reflection of US-China Tech Dynamics
In a notable move, the U.S. Department of Defense transiently revised its Section 1260H “Chinese Military Companies” list before retracting it within mere hours.
This list included prominent Chinese technology enterprises such as Alibaba, Baidu, and BYD, while inadvertently omitting memory chip manufacturers YMTC and CXMT.
Although being listed does not elicit immediate sanctions, it escalates compliance scrutiny and may curtail future access to U.S. defense procurement.
The sudden retraction, reportedly pending further interagency assessment, occurs in the lead-up to a scheduled April summit between President Donald Trump and Xi Jinping.
This action illustrates Washington’s endeavor to maintain trade equilibrium while navigating ongoing pressures surrounding technology and national security.
Importantly, removal from the Pentagon’s list does not alleviate existing export restrictions on China’s memory sector, emphasizing the distinction between reputational designation and enforceable trade limitations.
Memory Shortage Hampering Consumer Technology Launches
The expansion of AI data centers has precipitated a global memory shortage, consequently disrupting consumer electronics timelines. In recent weeks, DRAM prices surged by as much as 75%, compelling manufacturers to reassess product schedules and pricing strategies.
Significant acquisitions of Nvidia AI accelerators, each requiring extensive high-bandwidth memory by firms such as Alphabet and OpenAI, have exacerbated shortages in mainstream DRAM and NAND components.
Reports indicate that Sony is contemplating postponing the launch of its forthcoming PlayStation console to 2028 or 2029, while Nintendo is likely to alter pricing for its anticipated Switch 2. Smartphone manufacturers, including Xiaomi and Oppo, are adjusting shipment forecasts downwards.
Analysts predict that memory could constitute as much as 30% of the bill of materials for low-end smartphones this year, driven by the vast spending on AI infrastructure, projected to reach hundreds of billions of dollars by hyperscale firms, cascading into the broader hardware ecosystem.
Micron’s $200 Billion Expansion Aims to Bridge Supply Deficit
In response to the most constricted memory market in over forty years, Micron is hastening its global capacity expansion, which includes a $50 billion buildout in Boise and a $100 billion megafab project in New York.
The company anticipates that new DRAM capacity will become operational in 2027, primarily targeting AI-specific high-bandwidth memory needs. Executives conveyed that they currently fulfill only 50% to 66% of demand from key clientele, as investment in hyperscale continues to escalate.
Simultaneously, competitors, including SK Hynix, are also broadening their capacities. Micron projects gross margins of 68% for the current quarter, with both HBM4 and HBM3e sold out through the year’s end.
The company posits that this imbalance is structural, driven by inference workloads necessitating significantly higher memory density and bandwidth than in previous computing cycles, suggesting persistently tight allocations and elevated pricing into 2027.
Samsung Set to Reclaim Semiconductor Dominance by 2026
Following a period of dominance by Nvidia during the AI accelerator surge, Samsung Electronics is forecasted to recapture the title of top semiconductor revenue generator by 2026, buoyed by soaring DRAM and NAND prices.
Analysts predict that Samsung’s semiconductor division could yield up to $200 billion in revenue, with DRAM sales anticipated to rise 170% year-over-year and NAND exceeding 90%. Operating margins in the DRAM segment may surpass 70%, matching the peak performance levels of 2017-2018.
The overall semiconductor market could approach $1.1 trillion by 2026, with memory components alone projected to reach $500 billion—more than double the levels seen in 2025.
This resurgence could facilitate South Korea’s semiconductor exports to eclipse Taiwan’s for only the third time in 25 years, highlighting the profound impact of memory pricing on global industry hierarchies.
Glass Fiber Shortage Reshapes PCB Supply Chains
A mounting global shortage of glass fiber, essential for printed circuit boards, is intensifying competition among AI titans such as Nvidia and Apple, while nudging suppliers towards higher-margin specialty materials.
Taiwanese manufacturers, including Taiwan Glass Ind. and Nan Ya Plastics Corporation, are reallocating production from standard E-glass to low-dielectric and low-thermal-expansion variants, which are vital for advanced integrated circuit substrates.
Monthly price increments of 10-15% are anticipated, with projections indicating prices may double by the year’s end.
However, kiln conversion measures are expected to exacerbate supply constraints further, reversing years of oversupply in lower-tier PCB materials.
Tata’s Gujarat Fab Delay Undermines India’s Semiconductor Aspirations
The Tata Group’s flagship wafer fab initiative in Gujarat, in collaboration with Powerchip Semiconductor Manufacturing Corp, faces new delays that may push initial production back to 2028.
Valued at $11 billion and part of the India Semiconductor Mission, the project has reportedly necessitated a site relocation due to excavation challenges and could be impacted by supply issues related to rare earth materials.
This facility aims to manufacture mature-node chips, including power management ICs and display drivers, at 28nm.
As India seeks to establish itself as a viable semiconductor production hub amidst escalating U.S.-China tensions, any further delays could undermine investor confidence in the nation’s broader manufacturing ambitions.
AI Rack Infrastructure Expands Taiwan’s Supply Chain Growth
Revenue figures from January 2026 illustrate Taiwan’s burgeoning AI server market, surpassing mere chip production and general system assembly, extending into rack-level infrastructure. Vendors of chassis, rail kits, optical modules, and thermal systems are reporting annual growth rates in triple digits.
Notably, chassis manufacturer Chenbro and rail kit specialist NAN JUEN have both achieved record revenues, underscoring the rising demand for robust, high-density AI racks alongside liquid cooling solutions.
Optical component supplier Landmark Optoelectronics is augmenting its silicon photonics production capabilities, while BMC provider ASPEED is experiencing consistent advancements.
The data indicate that investments in AI infrastructure are penetrating deeper into the hardware spectrum, disseminating advantages across mechanical, thermal, and optical categories as the acceleration of hyperscale data center development progresses.
Source link: Digitimes.com.
