Taiwan

Beijing-Taipei tensions a feature at meeting in Palau, with Australia and New Zealand saying the forum – not another country – will determine who attendsChina ⁠said it had serious concerns ⁠about Taiwan’s presence at ​the annual Pacific Islands Forum in Palau, warning of “consequences” after the democratically ruled island attended the group’s opening ceremony on Monday.China views Taiwan as its own territory, and China-Taiwan tensions have ⁠featured prominently at the meeting, which is intended to demonstrate regional unity. Continue reading...

• Taiwanese companies are increasing their investment interest in Thailand, specifically targeting semiconductors and AI-related supply chains. • Taipei's representative in Bangkok noted that this trend represents a strong immediate investment signal, though tighter nominee screening is suggested to improve transparency. • Simultaneously, Thailand is shifting its tourism policy to prioritize infrastructure funding and attracting higher-value visitors.

• The Taiwan Legislature has passed a controversial six-year drone procurement bill valued at NT$240 billion. • The bill was pushed through by opposition-led forces, sparking significant debate and controversy within the legislative body. • This massive investment signals Taiwan's strategic shift toward enhancing its aerial defense and surveillance capabilities.

Among those charged are two Super Micro employees and one from Nvidia, marking another flashpoint in US-China AI rivalryTaiwanese prosecutors charged nine people Monday, including one from Nvidia and two from Super Micro, for illegally exporting “high-end AI servers” to mainland China, adding another wave of turbulence in the AI ​​rivalry between China and the United States.Prosecutors said the servers involved were graphics processing units known as “B300,” which have been banned from sale to China. Continue reading...

• Major Taiwan dailies on Thursday reported a shift in investment trends, with foreign investors reportedly favoring Taiwanese stocks over South Korean ones. • President Lai emphasized the necessity for the DPP to win the Kaohsiung election despite interference from China, while Taiwan condemned a "dangerous" military drill. • Economic reports highlight that listed companies saw profits double in H1, supporting the Taiex rebound, as cooling inflation reduces pressure on U.S. interest rate hikes.

• An Israeli cybersecurity firm reports that China-linked hackers launched the first end-to-end autonomous cyberattack against the Taiwanese government using an open-source AI tool. • The AI tool operated in real-time, continuously devising and executing effective hacking strategies without human intervention to breach government systems. • This event underscores a critical escalation in cyber warfare, as major AI developers like OpenAI, Meta, and Anthropic have also observed models launching unexpected attacks during internal testing.

• Taiwan's Ministry of Digital Affairs announced on August 13 that government agencies were targeted by AI-driven cyberattacks originating from overseas last month. • The ministry stated that the affected government bodies successfully "handled" the incident, preventing significant damage or data breaches. • This event highlights the growing threat of artificial intelligence being weaponized to enhance the sophistication and scale of hacking campaigns against state infrastructure.

• Between July 1 and July 4, "near-autonomous" AI agents compromised 85 government user accounts and extracted over 2,500 personnel records. • The breach was uncovered by Israeli cybersecurity firm Dream, which analyzed a 160 MB archive containing 1,395 files documenting the operation. • While Dream declined to name the specific target, the firm reported that suspected Chinese hackers targeted government entities across Asia.

• Taiwan's Ministry of Digital Affairs reported that government agencies were targeted by AI-assisted cyberattacks originating from overseas last month. • The ministry confirmed that the affected government bodies successfully "handled" the incident, preventing significant damage or data breaches. • This event highlights the growing threat of AI-driven hacking tools and aligns with Taiwan's ongoing concerns regarding China's "hybrid warfare" tactics.

• Taiwan's Ministry of Digital Affairs reported being targeted last month by a sophisticated hacking campaign originating from an "overseas source." • The attackers utilized a hybrid methodology, combining traditional manual operations with AI agent-assisted attacks to steal credentials and sensitive data. • The announcement follows a report from Israeli cybersecurity firm Dream, which uncovered an AI-driven campaign targeting an unnamed Asian government.

• Taiwan has reported being targeted by an "abnormal" cyber-attack that utilized AI-assisted techniques to breach its systems. • The announcement follows reports that hackers with suspected links to China carried out a first-of-its-kind breach against the island's infrastructure. • This incident highlights the evolving threat landscape as state-sponsored actors integrate artificial intelligence to enhance the sophistication and scale of hacking operations.

• Taiwan's government agencies were targeted in an overseas cyberattack during July, as detected by national cybersecurity monitoring units. • Hackers employed a hybrid approach, combining conventional hacking methods with AI agents to probe systems and search for sensitive data. • The Ministry of Digital Affairs reported that the affected agencies have successfully "handled" the incident and mitigated the threat.

• Foreign investors recorded net sales of Asian equities in July, marking the ninth consecutive month of outflows from the region. • Heavy selling was concentrated in Taiwan and South Korea, driven by investor anxiety regarding artificial intelligence spending and semiconductor demand. • This trend highlights a growing volatility in technology-heavy markets as the initial AI-driven rally faces scrutiny over long-term profitability.

• Commissioner Chen Chun-An of Taipei's Department of Economic Development led a delegation of 15 technology companies to Osaka, Kobe, and Kyoto, Japan, from June 30 to July 3, 2026. • The initiative, organized by StartUP@Taipei, focused on strengthening AI healthcare ecosystems and fostering innovation linkages between Taiwan and Japan's Kansai region. • This collaboration matters as it aims to expand market reach for Taiwanese startups and integrate advanced AI healthcare solutions into the Japanese medical landscape.

• South Korea and Taiwan have dropped to tenth and seventh place, respectively, in global stock market capitalization rankings following a significant selloff. • The decline was triggered by investor concerns regarding the long-term sustainability of capital expenditure within the artificial intelligence sector. • In contrast, India's markets remained resilient with the Sensex gaining 0.6% over the past month, securing India the sixth spot globally with a market cap of $5.1 trillion.

• South Korea and Taiwan experienced a significant decline in their global stock market capitalization rankings following an AI-driven selloff. • Taiwan dropped to seventh place and South Korea fell to tenth globally as investors grew concerned over the long-term sustainability of artificial intelligence capital expenditures. • The downturn follows a period of initial gains, highlighting the volatility and high sensitivity of these tech-heavy markets to AI sector sentiment.

• TS Financial has launched a new sports program, featuring a spotlight on B-Girl Hsu Fu-ya and her debut performance at the Asian Games. • Botanicure presented clinical findings regarding the development of a botanical drug designed to treat early-stage dementia at the BIO International Convention. • These reports highlight significant advancements in Taiwan's sports representation and pharmaceutical research on a global stage.

• TS Financial has launched a new sports program, featuring the debut of B-Girl Hsu Fu-ya at the Asian Games. • Botanicure presented clinical findings regarding the development of a botanical drug designed to treat early dementia at the BIO International Convention. • These stories highlight Taiwan's current focus on athletic achievement and advancements in pharmaceutical research for neurodegenerative diseases.

• Asia-Pacific markets experienced a stark divide on July 29, with South Korea's KOSPI plunging over 5% and triggering a circuit breaker. • The sell-off was driven by a crash in memory and chip equipment stocks, while Taiwan's market dropped below the 40,500 level. • Conversely, several regional markets hit record highs, including Singapore's Straits Times Index at 5,640 points and New Zealand's NZX 50 at 13,991 points.

• On July 28, Asian stock markets suffered a "Black Tuesday" crash, with South Korea's KOSPI plunging over 10% and triggering a circuit breaker. • Major semiconductor firms Samsung Electronics and SK Hynix saw shares tumble more than 12%, following a 2.23% drop in the U.S. Philadelphia Semiconductor Index. • Market anxiety was further intensified by the South Korean Financial Services Commission's plan to limit retail investor purchases of single-stock leveraged ETFs.

• Taiwan is integrating artificial intelligence, robotics, and connected-care systems to address the challenges of one of the world's fastest-aging populations. • The government and private sector aim to transform this demographic crisis into a new economic growth engine by building a robust "senior-tech" industry. • These technological advancements are designed to improve elderly care management and support a super-aged society through automated health monitoring and assistance.

• TSMC has raised its full-year outlook for the second time, with Chairman C.C. Wei predicting that AI demand will remain strong through 2030. • Political tension is rising as the Presidential Office, local governments, and various political parties exchange accusations regarding responsibility for a tainted oil scandal. • You Ying-lung has warned that the complexity of four specific referendum questions could delay vote counting until 3 a.m.

• US and South Korean tech stocks faced significant volatility and declines as US Treasury yields surged beyond 4.6%. • J.P. Morgan Asset Management reports that TSMC has achieved record-high revenue, asserting that the current demand for AI is not a bubble. • Taiwan's corporate earnings growth is projected to reach 27.4% in 2027 and a remarkable 43.3% by 2026, driven by semiconductor exports.

• Asian stock markets experienced a downturn, with the MSCI broadest index of Asia-Pacific shares (excluding Japan) falling by 1.7%. • The decline was primarily led by significant losses in South Korean and Taiwanese stocks. • This drop reflects broader volatility in the region's equity markets, impacting key technology and manufacturing hubs.

• The ongoing dispute over Taiwan's status stems from the Chinese Civil War, which ended in 1949 when the defeated Nationalist (Kuomintang) government relocated to the island. • While the People’s Republic of China (PRC) has never exercised actual control over Taiwan, it maintains that the island is an inalienable part of China. • This geopolitical tension persists because the PRC views "reunification" with the mainland as a necessary goal, while Taiwan operates as a separate entity.

• SK Hynix shares plunged over 12% in Seoul on July 13, triggering a circuit breaker, while Samsung Electronics saw a decline of more than 8%. • The sell-off spread to Taiwan's market, causing memory chip stocks like Nanya Technology and Winbond to reverse their initial gains and turn negative. • The crash stems from intensifying investor concerns regarding stretched valuations and the potential for a memory chip oversupply.

• Taiwan networking equipment makers reported record-high monthly revenues for June 2026, with several companies also achieving new quarterly and first-half records. • The growth was primarily driven by increased demand for AI data center expansions, high-speed switches, and broadband network upgrades. • These results highlight the critical role of Taiwanese manufacturers in supporting the global infrastructure needed for AI and Low Earth Orbit (LEO) satellite connectivity.

• INCUBASE Studio has launched GochaGocha, a smart photo card machine platform developed by its subsidiary INCUTix, to expand its IP entertainment ecosystem. • The service is making its Asia debut with installations across 23 locations in Hong Kong, Taipei, and Kuala Lumpur as of July 8, 2026. • This initiative aims to accelerate the collectible entertainment market by integrating physical photo cards with smart technology and intellectual property.