Coverage across early February 2026 depicts artificial intelligence as the central force reshaping global technology, manufacturing and trade. Semiconductor leaders are pushing massive investment plans, with examples such as Alphabet pledging a record 185 billion capital spend as artificial intelligence fuels cloud boom and Amazon flags US$200 billion capex as artificial intelligence push overshadows record cloud-led revenue. Governments in Asia are tying national strategies to this wave, as seen when South Korea aims to lead global quantum chip manufacturing by 2035 and India advances semiconductor ambitions as TSMC fabricates DLI-backed startup chips, while Taiwan posts fastest growth in 15 years as artificial intelligence boom drowns out hollowing-out fears.
Artificial intelligence infrastructure demand is straining supply chains for chips, memory, power and packaging. Reports describe memory shortage and Windows 11 refresh reshaping Europe’s 2026 PC market outlook, Samsung, SK Hynix shift to shorter memory contracts as prices surge, and 512Gb NAND wafer shortage triggers forced upgrades, narrows gap with 1Tb. Cloud and artificial intelligence chip buyers are racing to secure capacity, with Google doubles artificial intelligence capex, turning TPU ASIC orders into high-stakes supplier race and CSPs turn to custom silicon to break Nvidia dependence. Advanced packaging and materials are becoming bottlenecks too, as ASE expects advanced packaging and testing revenue to double in 2026 while memory and upstream material price hikes squeeze profits, Chinese panel makers shift to ultra-large sizes, and Sumitomo Bakelite to acquire Kyocera unit, paving way for Chang Wah expansion.
The blizzard of artificial intelligence activity is also reorganizing industry alliances, regional ecosystems and end markets. Nvidia and Dassault Systèmes deepen partnership to bring artificial intelligence into the physical world, Dassault Systèmes unveils ‘generative economy’ vision for artificial intelligence-driven industry, and Nvidia CEO sees digital twins driving robot surge in next decade, underscoring a shift toward physical-world applications from robotics to industrial design. Asia’s manufacturing hubs are adapting, with Japan’s Ibiden channels US$3.3bn into IC substrate expansion for artificial intelligence servers, TSMC goes all-in on Japan: Kumamoto Fab 2 upgraded to 3nm powerhouse, and Taiwan-US sign Pax Silica Declaration to boost trusted artificial intelligence and advanced robotics. At the same time, China’s artificial intelligence model and chip race is intensifying, as Shanghai’s artificial intelligence chip boom powers China’s homegrown computing future, China’s artificial intelligence chip swarm hits mass scale, chipping away at Nvidia’s China stronghold, and Beijing officially lists ‘future industries,’ setting the stage for supply chain realignment, illustrating how policy, capital and technology are converging around artificial intelligence-led growth.
