Taiwan tech firms show mixed August sales amid AI strength

Investing.com -- Taiwan-based technology companies reported August 2026 sales results that showed continued strength in AI-related markets while PC and smartphone segments weakened, according to Raymond James analysis.

Semiconductor vendors displayed overall strength, but signs of weakness emerged in PC and mobile-exposed segments. Through the first two months of the quarter, approximately 74% of vendors reported growth above the five-year seasonal average, down from 87% in both the first and second quarters of 2026.

Memory sales remained strong but showed slower growth. Revenue for the three tracked vendors rose 51% sequentially through the first two months of the third quarter, below the 60% average growth in the second quarter and 69% in the first quarter. Recent earnings commentary from AMD (NASDAQ: AMD), Intel (NASDAQ: INTC), and Arm Holdings (NASDAQ: ARM) indicated that memory supply remains tight, with vendors prioritizing server products and AI deployments over PCs and personal devices.

Cloud and AI server component suppliers reported solid results, with all vendors showing better than seasonal growth. This marked an improvement from 75% and 50% of cloud vendors reporting above-seasonal revenue in the second and first quarters respectively.

ASIC design company Alchip reported adjusted sequential quarterly growth that more than tripled, up 299% compared to 82% growth in the second quarter.

PC trends weakened, with approximately 51% of PC-exposed vendors reporting below seasonal trends in August. In the first quarter, all PC-exposed vendors had reported above-average seasonal trends.

Smartphone sales also showed weakness, with approximately 57% of vendors reporting below seasonal trends through the first two months of the third quarter, compared to 29% in the second quarter. Limited memory supply is being allocated to servers and AI data center deployments rather than mobile devices.

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