AI squeezes chip component capacity as Zyxel flags longer lead times, higher memory costs

Slowing capex by global telecom operators and surging prices for memory and other components weakened Taiwan-based networking equipment maker Zyxel Group's operations in the third quarter of 2026. The company posted consolidated revenue of NT$7.753 billion (US$236.7 million), down 11.4% quarter-over-quarter but up 20.8% year-over-year, as overall customer demand recovered.