AGP Executive Report

Taiwan Strait Tensions: Taiwan accused China of a coordinated “provocation” near the Pratas Islands, saying Chinese coast guard and an oceanographic survey ship acted together for the first time, as Beijing continues to press sovereignty claims. Defense & Deterrence: Analysts warned Taiwan’s “silicon shield” could weaken if outside help is seen as unreliable, arguing the semiconductor industry might shift from deterrent to hostage in a worst-case scenario. Energy Security: Experts urged Taiwan to decentralize and harden its power system after Russia’s attacks on Ukraine’s grid highlighted how centralized infrastructure can be targeted. U.S. Support: The U.S. House Armed Services Committee advanced a FY2027 defense bill that includes up to US$1 billion to help Taiwan, including funding for medical support, training, and unmanned systems. Tech & Markets: President Lai said Taiwan wants to turn its capital market into an “Asian Nasdaq” to attract global startups, while foreign investors’ holdings hit a record near US$1.9 trillion and forex reserves rose to US$605.07 billion. Local Life: Taipei Zoo received a pair of endangered red pandas from China, the first such exchange in over a decade, with a month-long quarantine before public viewing.

AI & Tech Economy: COMPUTEX 2026 opened in Taipei under the “AI Together” theme, spotlighting Taiwan’s role in moving AI from labs to real deployment across servers, edge, robotics, and smart mobility. Semiconductor Supply & Pricing: TSMC CEO C.C. Wei warned the AI chip shortage will last for years and said pricing won’t “spike” suddenly, even as advanced-chip costs are already rising in measured steps. Markets Hit by Chip Selloff: Wall Street took a hard hit as semiconductor stocks plunged, dragging major indexes and tech-heavy names tied to AI. US-Taiwan Diplomatic Signal: Trump said he may still call Taiwan President Lai despite China’s warnings, keeping the door open to a rare direct presidential dialogue. Cross-Strait Messaging: Taiwan’s KMT leader Cheng Li-wun told a US seminar peace can hold if Taipei avoids “de jure independence,” while China again attacked Taiwan’s stance on cross-strait forums. Security & Strait Tensions: China said it tracked a Dutch frigate through the Taiwan Strait, while Taiwan reported heightened Chinese military activity near its territory. Nature & Taiwan Identity: Researchers identified East Asia’s tallest known tree near Taiwan’s Da’an River, the “Heaven Sword,” a Taiwania fir estimated at 84.1 meters. Weather Watch (Taiwan-linked): A Philippine tropical depression, Ester, is expected to traverse Taiwan, bringing strong winds and heavy rain risks.

Computex 2026 Wrap-Up: Taipei’s COMPUTEX 2026 closed with “AI Together,” drawing 111,312 buyers from 152 regions and spotlighting physical AI, robotics, and smart mobility, with crowds drawn to smart sportswear, AI chess, and ultra-light EVs. Nvidia Supply Push: Nvidia CEO Jensen Huang said the company has doubled capacity for the second half of 2026 and warned that 2027 demand will be even bigger, after praising Taiwan’s role in the AI boom. Foxconn Outlook Lift: Foxconn reported May revenue of NT$859.4B (+39.57% YoY) and raised its Q2 outlook, citing strong visibility from AI rack systems. Cybercrime Threat: A China-linked group, TA4922, expanded beyond East Asia to Europe and Africa, using localized lures and messaging apps to spread malware and target corporate networks. Taiwan Markets: Taiwan shares ended down 1.33% after a wild swing, with investors turning cautious on tech after U.S. losses. Cross-strait Diplomacy: Taiwan’s legislature passed a resolution condemning Beijing’s pressure that derailed President Lai’s Eswatini trip, warning it undermines sovereignty and international norms.

Taiwan-China Tensions: China blasted U.S. Secretary of State Marco Rubio over remarks on the Tiananmen crackdown, while Taiwan urged Beijing to “face up to history,” as Taipei marked the 37th anniversary with a candlelight vigil and a moment of silence. Cross-Strait Deterrence: Taiwan is accelerating missile stockpiles to deter China, while a leaked video allegedly showing Singaporean troops training in Taiwan is being read as a sign of Taipei’s push to stay assertive amid any U.S.-China deal risk. China-NZ Diplomatic Fallout: China imposed travel bans on four New Zealand MPs after their Taiwan visit, prompting backlash and concern from New Zealand and Australia. Trade & Tariffs: The U.S. proposed forced-labor-related tariffs that include Taiwan, adding new uncertainty for regional supply chains. AI & Semiconductors: At Computex in Taipei, the AI hardware race stayed front and center, with reports on TSMC’s AI demand strain and new chip and data-center moves shaping Taiwan’s long-term growth story. Markets: U.S. stocks rose on Thursday as investors focused on calmer signals from the Middle East, while tech lagged.

Taiwan-US Tech & Chips: TSMC CEO C.C. Wei told shareholders the AI boom will keep driving demand for advanced chips for years, adding he’d “like” to raise prices but won’t copy memory makers’ unsustainable approach. AI Hardware Push: Foxconn and Intel announced a strategic collaboration to build next-gen AI infrastructure across silicon, racks, systems and applications. Computex Momentum: At Computex in Taipei, Nvidia CEO Jensen Huang pitched “agentic” AI for PCs, while TSMC’s AI supply strain and cooling/AI memory challenges kept the spotlight on the next bottleneck. China Pressure on Taiwan Ties: China imposed a one-year entry ban on four New Zealand lawmakers after their Taiwan visit, warning they crossed the “red line” and urging apology for possible reversal. Defense & Deterrence: Taiwan plans to expand its anti-ship missile arsenal to over 1,800 units by early 2029 as part of a broader asymmetric defense strategy. Trade Compliance: Taiwan said it will set up an interministerial review mechanism to restrict forced-labor-linked imports after a U.S. forced-labor tariff proposal. Finance for Foreigners: Taiwan launched a one-stop banking initiative for foreign residents, designating six banks to streamline account opening, credit cards and international transfers.

Cross-Strait Tech & Security: Taiwan’s TikTok and Little Red Book influence is back in the spotlight as President Lai Ching-te backed student warnings, while a Mainland spokesperson pushed back on Lai’s claims and defended cross-strait social media engagement. US-Taiwan Arms & Policy: US Secretary of State Marco Rubio told lawmakers the US is not withholding a pending $14 billion Taiwan arms package, saying it remains under review and that Washington’s Taiwan policy hasn’t changed. China Pressure on Taiwan Links: China banned four New Zealand politicians for a year after a Taiwan visit, warning sanctions could be lifted if they apologize—another sign of how Taiwan travel can trigger Beijing’s retaliation. Markets & Energy Mood: Oil edged toward $100 and stocks slid as US-Iran tensions flared again, adding pressure to global growth expectations. Computex Taipei Tech Buzz: Nvidia and Microsoft expanded their “agentic AI” push for Windows and cloud, while Computex also highlighted Nvidia’s RTX Spark push and the “Jensen Huang effect” driving tech sentiment. Trade Policy Shock: The US proposed new Section 301 tariffs tied to forced-labor findings, including levies that explicitly list Taiwan among affected economies.

Cross-strait diplomacy: Taiwan urged Japan and the Philippines to consult it over planned maritime boundary talks, warning the area overlaps with Taiwan’s rights and interests. China’s response: Beijing called the talks “totally illegal,” reiterating Taiwan is part of China and accusing Taiwan’s ruling party of relying on outside forces. US trade pressure: The U.S. Trade Representative proposed new forced-labor tariffs on 60 economies, with Taiwan listed for an extra 10% duty, as Washington seeks to rebuild its tariff agenda after court setbacks. Tech and markets: Taiwan shares hit fresh highs as AI-led momentum lifted chip stocks, with TSMC leading gains; separately, at Computex Taipei, Nvidia CEO Jensen Huang praised connectivity and hailed Marvell as a “next trillion-dollar company,” sending Marvell shares soaring. Security in space: Taiwan’s space agency said it wants stronger capability to monitor Chinese on-orbit activity, warning that “spooky” satellite behavior is hard to observe in time. Local economy: Taiwan’s IC packaging giant ASE topped TWSE-listed firms for average employee pay in 2025, while TSMC ranked seventh.

AI PC Push in Taipei: Nvidia unveiled the RTX Spark “superchip” to bring AI agents and local AI workloads to Windows laptops and desktops, with Microsoft and Dell among the first partners. Powering the AI Boom: Schneider Electric introduced an 800VDC “sidecar” power system to cut congestion and handle rising data-center electricity needs for next-gen GPUs. Semiconductor Market Jolt: Jensen Huang called Marvell the “next trillion-dollar company,” sending Marvell shares up about 30% and boosting AI-linked networking names. Local Defense Tech: Taiwan’s NCSIST displayed US-platform robot dogs with LiDAR, reconnaissance and firepower variants, signaling more asymmetric warfare capability. Cross-Strait Security & Diplomacy: Taiwan says it should be included in Japan-Philippines maritime talks east of Taiwan, while China demands a say and has started coast guard patrols. US-Taiwan Arms Signal: Marco Rubio told senators a major Taiwan arms sale remains under review, while policy on Taiwan status quo is unchanged.

Computex Taipei Tech Push: Nvidia CEO Jensen Huang told reporters in Taipei that companies should pay workers “as much as possible,” as he unveiled the RTX Spark push for “AI personal computers,” while Intel CEO Lip-Bu Tan called Nvidia’s PC-chip competition “a good thing” for new AI opportunities. AI Hardware Race: Intel said agentic AI will drive CPU demand; Samsung showed an HBM5 mock-up and teamed with Nvidia to demo premium OLED gaming; SK Group said SK hynix plans to double wafer capacity over five years. Cross-Strait & Security: Taiwan reported two pilots killed in a T-34C training crash and said it grounded T-34C trainers pending checks; China’s foreign ministry reiterated that both sides of the strait share duty to safeguard sovereignty and maritime rights. Regional Tensions: U.S. and Chinese military officials met in Hawaii under the Military Maritime Consultive Agreement to reduce risky encounters. Taiwan in the Global Spotlight: Taiwan’s stock market hit a new high as TSMC led gains amid AI optimism, and Taiwan Lottery launched two new scratch cards with over NT$2 billion in total prizes.

US-Taiwan Trade Deal: Taiwan says it will stay the world’s top AI chipmaker after a new U.S. agreement cuts tariffs on Taiwanese goods to 15% and boosts U.S. semiconductor investment, with Taiwan framing the deal as a “home run” for reshoring. Computex Taipei Tech Push: Nvidia used Computex in Taipei to unveil RTX Spark, a Windows PC “superchip” meant to run AI agents locally (with Microsoft and MediaTek), plus a broader push into agentic AI and physical AI tools. Opposition Politics in Washington: KMT chair Cheng Li-wun begins a two-week U.S. tour to promote cross-strait peace via dialogue, saying she’s willing to meet Trump if it helps stability. China-Taiwan Media Row: China expelled a New York Times reporter tied to an event featuring Taiwan President Lai, accusing the paper of enabling “separatist” messaging, while Taiwan rejects the move as press suppression. Maritime Tensions: China’s coast guard conducted patrols east of Taiwan, saying it’s responding to Japan-Philippines maritime delimitation talks that Beijing claims infringe on its rights. Markets Watch: U.S. stocks opened cautiously but ended higher, with the Nasdaq rising as AI-linked tech sentiment stayed strong.

AI & Chips in Taiwan: Nvidia kicked off Computex Taipei with RTX Spark, a new Arm-based “AI PC” chip for Windows laptops and desktops, plus Vera Rubin AI hardware in full production—aimed at running AI agents locally and rolling out major-brand PCs later this year. Cross-strait & U.S. ties: KMT leader Cheng Li-wun said she is “very willing” to meet U.S. President Trump during her upcoming Washington trip, as Taiwan watches how her China engagement and defense stance play with U.S. lawmakers. Security backdrop: China hit back at Japan’s defense minister over “baseless” claims at the Shangri-La Dialogue, as regional military rhetoric continues to sharpen. Tech policy pressure: Taiwan’s manufacturing stayed in the “green” zone in April, with AI demand supporting output even as Middle East tensions nudged trade indicators. Transport safety: Taiwan’s transport ministry is considering tougher penalties for drug-impaired driving, including license revocation and longer bans. Business & markets: Global stocks hit records on AI optimism while oil rose on stalled U.S.-Iran ceasefire talks, adding mixed pressure to risk assets and crypto.

Cross-strait & diplomacy: Taiwan condemned China after Beijing expelled a New York Times reporter following an interview with President William Lai, calling it another move to suppress press freedom and threaten journalists. Security flashpoints: At Singapore’s Shangri-La Dialogue, Japan’s defense minister Shinjiro Koizumi rejected “new militarism” accusations, pointing to China’s nuclear arsenal and criticizing Beijing’s lack of transparency as tensions over Taiwan and regional defense rise. Tech & sanctions: The U.S. moved to close a loophole that may have let advanced Nvidia AI chips reach Chinese firms via overseas entities, while Taiwan authorities suspect Nvidia chips were smuggled to China through a Japan transshipment route. Regional pressure: China also condemned Czech Senate President Milos Vystrcil’s Taiwan visit, reiterating opposition to official exchanges with the Taiwan region. Local life & travel: A new Taichung travel guide highlights family-friendly stays and dining options, including InterContinental Taichung and local hot pot spots. Science: Researchers announced a sesame-seed-sized sea slug species discovered off Keelung, named Thecacera sesama.

Taiwan Security & Cross-Strait Tensions: U.S. Defense Secretary Pete Hegseth toned down his China rhetoric at Singapore’s Shangri-La Dialogue, but urged Asian allies to boost defense spending and kept U.S. Indo-Pacific commitments intact—while sidestepping direct questions about Taiwan arms timing. China Military Posture: Satellite reporting says China is building dozens of nuclear launch pads and hardened support facilities near its missile silos in Xinjiang, raising second-strike and survivability concerns. Undersea Cable Protection: The U.S., UK and Australia unveiled an AUKUS push to develop underwater drones to safeguard critical seabed infrastructure, citing cable-cutting incidents linked to China near Taiwan. Tech & Economy (Taiwan): Nvidia and Microsoft are expected to unveil the first Windows PCs powered by Nvidia-designed Arm-based chips at Computex in Taipei and Microsoft’s Build in San Francisco. AI Market Momentum: Taiwan overtook India to become the world’s fifth-largest stock market, driven by the AI-led surge around TSMC. Local Governance & Daily Life: Taipei expands its smoke-free rules in Ximending, with fines up to NT$10,000 starting June 1. Civil Society: NGOs quit GlobalGiving over its use of “Chinese Taipei” instead of “Taiwan,” warning it could invite further Beijing pressure.

Taiwan-US Tensions & Media: The U.S. revoked a Xinhua journalist’s visa after China expelled a New York Times reporter, escalating a fresh round of journalist expulsions tied to Taiwan President Lai’s high-profile appearance. Defense & China Watch: At Singapore’s Shangri-La Dialogue, U.S. Defense Secretary Pete Hegseth urged Asian allies to boost defense spending and warned against any “hegemon” dominating the Indo-Pacific, while China’s defense minister Dong Jun skipped the forum again. Cross-strait Security Signals: Reuters reported China is building a massive nuclear-related launch-pad network in Xinjiang, a move analysts link to strengthening second-strike capability amid rising Taiwan tensions. Local Governance & Health: Taipei will ban smoking in Ximending from June 1, with fines up to NT$10,000. Energy & Costs: Taiwan’s state power utility Taipower posted an April pre-tax deficit of NT$4.7 billion as Middle East-linked fuel costs rose. Infrastructure: Taiwan opened the Danjiang Bridge, the world’s longest single-mast cable-stayed bridge, designed for major earthquakes. Tech & Business: Microsoft and NVIDIA teased a “new era of PC” ahead of Computex, fueling speculation about new Arm-based laptop chips. Taiwan Diplomacy: Taiwan will send its first-ever medical mission to St. Kitts and Nevis starting June 1.

Cross-Strait Politics: China’s Taiwan Affairs Office hit back at DPP “green democracy” rhetoric, saying it’s a separatist disguise that tries to distort the one-China principle and history. Defense & Diplomacy: Canada’s HMCS Charlottetown transited the Taiwan Strait despite Beijing’s objections, while China also protested Japan-Philippines maritime talks as “illegal.” AI & Semiconductors: Nvidia CEO Jensen Huang is in Taiwan for Computex and says the company will spend about $150B a year on Taiwan’s AI supply chain; MediaTek and others are also pushing advanced packaging partnerships as the chip race intensifies. Economy & Markets: Taiwan’s AI-led growth outlook and stock surge continue to draw attention, with Taiwan’s bourse outperforming India amid chip momentum. Global Affairs: The U.N. blacklisted Israel and Russia over sexual violence in conflict, and U.S.-China tensions spilled into journalist visa expulsions after Trump’s Beijing visit. Local Life & Science: Divers helped name a tiny “sesame” sea slug species newly described from Taiwan waters.

AI Boom & Growth Outlook: Taiwan’s economy is forecast to grow 9.64% in 2026, the fastest pace in 16 years, as demand for AI, high-performance computing and cloud infrastructure lifts activity and pushes the outlook to a 16-year high. Computex 2026 Tech Push: Nvidia CEO Jensen Huang is set to headline Computex (June 2-5) with a major Taiwan AI-infrastructure message, saying Nvidia will spend up to $150 billion a year in Taiwan; AMD also signals heavy investment, as the show spotlights Taiwan’s shift from chips to powered, cooled, networked AI systems. Semiconductor Supply Chain Moves: MediaTek says it has started working with Intel on advanced chip packaging alongside its existing TSMC ties, while Foxconn plans to begin shipping next-gen AI data-center transmission tech this year. Finance Watch: Taiwan’s central bank says it will take “timely” steps to protect financial stability amid tariff uncertainty, China weakness and geopolitical risks. Defense & Security: A U.S. study says the Navy could rapidly boost missile firepower by adding hundreds of launchers to existing and retired ships, as nuclear competition and Taiwan-related tensions remain in focus. Culture Under Pressure: A documentary highlights how Shen Yun performers face threats and pressure.