AGP Executive Report

Cross-Strait Security: Taiwan fired 32 U.S.-supplied HIMARS rockets westward toward China in a first-of-its-kind live-fire drill, testing “shoot-and-scoot” tactics and rapid precision strikes as Beijing condemned it as provocation. U.S.-China-Taiwan Politics: KMT chair Cheng Li-wun told U.S. lawmakers and think tanks her party backs Taiwan’s defense but says peace can come by ruling out permanent secession, seeking to ease Washington’s concerns during her U.S. trip. Taiwan Strait Tensions in the Background: China renewed claims of “spy turtles” and “spy fish” mapping its waters, while Taiwan continues to respond to maritime pressure around disputed areas. Semiconductor & Tech Links: Pingtung broke ground on Taiwan’s first semiconductor supply-chain park, and Google is reportedly in talks with Samsung and TSMC for parts of next-gen AI chips. Local Economy & Industry: Pima County’s Taiwan trip produced MOUs tied to semiconductor and education partnerships, while Taiwan’s AI-driven export momentum keeps markets focused on chip demand. Culture & Community: A Taiwan Film Week in Jerusalem highlights Taiwanese storytelling for Israeli audiences.

Taiwan Strait & Security: Taiwan’s coast guard and military drills stayed in the spotlight as China pressed maritime operations east of the island, with Taipei warning its sovereignty can’t be “violated” and vowing expulsions after patrols ended. U.S. Defense Support: A U.S. Senate Armed Services bill advanced with a Taiwan war reserve stockpile provision and expanded “First Island Chain” security cooperation, keeping Taiwan’s deterrence funding on track. Cross-Strait Diplomacy: KMT chair Cheng Li-wun met U.S. lawmakers in Washington to discuss Taiwan security, defense readiness, and arms procurement, underscoring the party’s push for more information from both sides. Markets & Chips: Taiwan stocks jumped after Trump signaled progress toward an Iran ceasefire, lifting AI-linked names; meanwhile, TSMC and other chip supply stories kept demand-and-shortage concerns in focus. Global Tech & Policy: China’s state security claimed “spy turtles” and “spy fish” were used to collect sea data, while Taiwan’s own AI chip export controls to China were also debated. Ukraine-Taiwan Ties: Taiwan-funded rehabilitation facilities in Lviv were inaugurated, reinforcing Taiwan’s humanitarian diplomacy. Business/Travel: Tigerair Taiwan denied reports of an emergency landing in Hokkaido, saying a smoke warning was handled safely. Sports: Alas Pilipinas and Taiwan’s volleyball team headlines continued as Taiwan swept the Philippines to knock them out of semifinal contention.

Cross-Strait Tensions: Taiwan fired US-supplied HIMARS rockets toward waters facing China in a live-fire drill near Taichung, marking the first west-coast, invasion-simulation use of the system and underscoring a shift toward coastal interception against amphibious landing scenarios. Maritime Dispute: Taiwan also accused Chinese vessels and coast guard patrols of provocative activity near disputed areas east of the island, while Beijing claims jurisdiction—raising the risk of further standoffs. Defense & Diplomacy: Taipei’s US arms package talks continue, with Taiwan’s envoy saying a US$14 billion sale is awaiting Trump’s decision and expected to move once review is done. Politics in Washington: KMT leader Cheng Li-wun told NPR that “reunification” was not discussed in her Xi meeting, as she tours the US to argue for engagement. Tech & Industry: Google is reportedly discussing splitting production of its next-gen AI chip with Samsung, while Taiwan’s semiconductor ecosystem remains central to global AI demand. Business: PharmaEssentia (Taiwan) agreed to buy Canada’s FORUS Therapeutics for US$36.5 million to expand its North American footprint. Sports: Alas Pilipinas was swept by Chinese Taipei in the AVC Women’s Cup, ending its semifinal bid and pushing the team into classification play.

Cross-Strait Maritime Tensions: Taiwan’s Coast Guard condemned China after two Chinese official vessels briefly entered restricted waters around Taiping Island (Itu Aba) for the first time, then were expelled, with Taipei warning it will remove any ship trying to assert “illegitimate” jurisdiction. Military Drills & Deterrence: Taiwan test-fired US-supplied HIMARS rockets into the Taiwan Strait for the first time, firing dozens of rounds in a live-fire anti-invasion exercise aimed at likely landing zones. AI Chip Export Crackdown: Taiwan is moving to criminalize unauthorized AI chip exports to mainland China, escalating beyond company blacklists after a smuggling case involving high-end NVIDIA chips. Energy Pressure in Asia: With LNG supply disrupted, Asia’s coal demand could jump sharply in 2026 as utilities shift from gas to coal. Business & Markets: TSMC reported record May revenue on sustained AI demand, while Taiwan stocks tracked broader tech sell-off jitters. Food & Trade: Taiwan resumed pork exports with its first processed shipment to Singapore. Sports: Alas Pilipinas was swept by Chinese Taipei in the AVC Women’s Cup, ending its semifinal hopes.

Cross-Strait Politics in Washington: Two top U.S. House Republicans plan to meet Taiwan’s Beijing-friendly KMT leader Cheng Li-wun during her trip to Washington, as China watches closely how the Trump administration handles Taiwan. Security & Defense Drills: Taiwan carried out a live-fire test of U.S.-supplied HIMARS “shoot-and-scoot” rockets into waters of the Taiwan Strait, underscoring its focus on fast, mobile deterrence. AI Chip Export Controls: Taiwan is reviewing tighter rules on AI chip sales to China to match U.S. policy, potentially expanding restrictions beyond blacklisted firms and raising compliance pressure for server makers. Election Security Alarm: The KMT proposed amending Taiwan’s Nationality Act to let Chinese citizens with Taiwan household registration run in public elections without renouncing Chinese nationality, drawing security concerns. Hong Kong National Security Expansion: Hong Kong plans subsidiary legislation allowing the Chief Executive to certify certain cases as national security offenses, a move critics say could broaden political risk. AI Wealth Surge: Forbes’ Taiwan Richest 2026 coverage highlights how the AI boom is lifting chip and components fortunes, including newcomers tied to PCB, storage, and AI chip-testing equipment. Markets Mood: Asian equities saw record foreign outflows amid AI worries and Middle East tensions, with Taiwan among the biggest sellers in the region.

Cross-Strait Maritime Tensions: China says it wrapped a June 6-10 maritime enforcement and hydrographic operation in waters east of Taiwan, covering 1,030 nautical miles and inspecting 198 vessels, framing it as a response to Japan-Philippines maritime talks; Taiwan counters that Chinese coast guard patrols “harassed” commercial shipping and disputes Beijing’s jurisdiction. Defense Drills: Taiwan’s military fired reduced-range rockets from U.S.-supplied HIMARS “shoot-and-scoot” launchers into waters near the Taiwan Strait during a live-fire exercise, underscoring an asymmetric approach to deter attack. AI & Chips Watch: TSMC reported record May revenue of NT$416.975 billion (+30.1% YoY), citing strong AI-related demand, while Applied Materials announced a US$500 million Singapore campus expansion to meet AI chip manufacturing needs. Local Demographics: Taiwan recorded 6,832 births in May, the second-lowest on record, extending a 29-month decline. Business Deal: Taiwanese Bizlink agreed to buy Blackstone’s Interplex Datacom unit for $850 million (plus $50 million earnout) to expand data-center and AI interconnect offerings. Culture & Language: Taiwan literature translators and scholars met in Poland to discuss how to carry Taiwanese cultural nuance into other languages.

Cross-Strait Security: Taiwan reported a “provocative” Chinese maritime operation east of the island, with coast guard patrols and ships moving near sensitive waters; Taiwan deployed vessels in response and said it detected multiple sorties of aircraft and vessels around its territory. Defense Readiness: Taiwan’s Army ran a live-fire coastal drill simulating an amphibious invasion, as the island accelerates missile and anti-landing defenses amid heightened China pressure. AI Chips & Trade Controls: Taiwan is considering stricter export controls on AI chip sales to China to better match U.S. rules and curb diversion of advanced hardware. Diplomacy & Taiwan’s Place in the World: Palau reaffirmed support for Taiwan’s sovereignty during Vice President Hsiao’s visit, while Taiwan also faced renewed international friction over China’s travel bans tied to lawmakers’ Taiwan trips. Economy & Markets: Global stocks rallied on a tech dip-buying wave as oil eased after Iran-Israel attack pauses, while Taiwan’s tech-heavy market remained tightly linked to AI supply-chain sentiment. Offshore Wind Outlook: A new report projects global offshore wind capacity could quadruple to 420 GW by 2035, with Taiwan among the top installers.

Cross-Strait & Regional Security: Taiwan said China’s coast guard maritime operation near its waters is “provocative,” as Taipei deployed vessels and reported multiple PLA aircraft and ships around the island. China–North Korea Summit: Xi Jinping’s rare Pyongyang visit with Kim Jong Un focused on expanding cooperation in politics, economy and culture, with both sides pledging to “resist US aggression” and reaffirming the “one China principle,” while analysts noted nuclear issues were not highlighted. Taiwan Markets & Chips: Taiwan shares rebounded strongly, led by electronics and financials, after a tech-led US bounce; the rally also underscored how TSMC and peers dominate regional indexes. AI Supply Chain: Reports say Google ordered more than 3 million specialized AI chips from Intel for 2028, as demand pressures continue amid Taiwan’s strategic chip role. Local Life & Services: The National Palace Museum will host a free Dragon Boat Festival flute concert on June 19, and Taipei will hold free migrant worker health check-ups at Taipei Main Station on June 14. Health & Food Safety: Taiwan rejected two shipments of Japanese mitten crabs over dioxin contamination and will tighten batch-by-batch inspections. Diplomacy: Canada’s MPs plan an official Taiwan visit in October despite Beijing calling such trips “hurtful.”

Cross-strait Security: Taiwan called China’s maritime “law enforcement” operation east of the island “provocative” and “expansionism in disguise,” saying it’s part of a cognitive warfare push to claim enforcement jurisdiction; Taiwan deployed seven patrol vessels and expelled four Chinese ships after a standoff. Earthquake Aftermath: A 7.8-magnitude quake struck the southern Philippines near Sarangani, killing at least 35 and injuring more than 200, with 12 missing and tsunami warnings issued across the region including Taiwan. Tech & Markets: Wall Street steadied as AI stocks rebounded, with the Nasdaq up while Asian markets slid on rate and AI valuation worries; Taiwan’s tech-linked sentiment remains tied to global chip demand. Health Research: A Taiwanese study found higher fecal hemoglobin levels after polypectomy better predict colorectal cancer risk, suggesting an f-Hb–guided approach could cut colonoscopy demand by about 10% over nine years without raising projected CRC risk. Industry Watch: Shiseido announced it will close its Taiwan factory to streamline global production, shifting output to Japan while focusing Taiwan on distribution.

Philippines Earthquake & Tsunami Alerts: A 7.8 quake off Mindanao killed at least 19 people and injured 100+ as buildings collapsed and tsunami warnings spread across the region, including Taiwan, prompting coastal residents to move to higher ground. Cross-Strait Maritime Tensions: Taiwan’s National Security Council and defense chief called China’s “law enforcement” patrols east of the island “provocative” and “cognitive warfare,” after Taiwan deployed vessels and expelled four Chinese ships from restricted waters. Taiwan Stocks Slide: The Taiex plunged 3.48% as global risk sentiment soured on renewed Israel-Iran fighting and Fed rate-hike fears; TSMC shares also dragged the market. AI & Semiconductors Spotlight: TSMC jumped to ninth in PwC’s global top 100 by market value, while Hong Kong’s Hang Seng Tech added pure-play AI firms MiniMax and Zhipu, even as regional tech stocks sold off. Supply Chain Resilience Push: VP Hsiao Bi-khim hosted an international DSET forum on AI, semiconductors, drones, and supply-chain resilience, linking tech upgrades to Taiwan’s democratic security. Low-Carbon Tech in Taiwan: E Ink installed the world’s first 75-inch color ePaper ad display at Taoyuan Airport, pitching ultra-low power signage for a greener travel experience.

Cross-Strait Maritime Tensions: Taiwan’s coast guard deployed vessels to respond to a Chinese “law enforcement operation” east of the island, after Beijing claimed Japan-Philippines maritime boundary talks were “illegal” and asserted exclusive jurisdiction; Taiwan says China has no sovereign rights there and reports four Chinese government vessels departing Xiamen and operating outside restricted waters. Diplomacy & Security: The standoff comes as Japan and the Philippines move toward delimiting maritime boundaries, with Taiwan warning China is using the talks as a pretext to create a “jurisdiction” illusion. Tech & AI Supply Chain: At Computex, Teamgroup unveiled a PCIe 6.0 SSD targeting AI/HPC speeds up to 28GB/s, while broader AI-chip momentum keeps driving market focus on Taiwan’s role in the AI hardware race. Local Governance & Public Safety: Taiwan marked National Oceans Day with pledges on anti-drug and anti-crime efforts, marine conservation, and an integrated sea-air coast guard; the transport ministry also plans national standards for motorcycle child safety seats. Culture & Society: Taiwanese groups joined Tokyo Pride under “Team Taiwan,” highlighting equality and LGBTQIA+ rights.

Cross-strait security: Taiwan’s coast guard deployed more than five patrol ships after China announced a “law enforcement operation” east of the island, saying Beijing has no sovereign rights there and the move violates international law. Maritime tensions: Taipei links the escalation to China’s response to Japan-Philippines maritime boundary talks, while CGA says it detected four Chinese vessels departing Xiamen and kept traffic normal. U.S. Taiwan ties: Trump said he may still speak directly with Taiwan President Lai, despite Beijing’s warnings, as the $14 billion arms package remains under consideration. Local resilience: Northern Taiwan saw heavy thunderstorms that forced Taipei Songshan Airport to suspend ground operations, delaying flights. Wildlife exchange: Taipei Zoo received a pair of endangered red pandas from China, the first such transfer in over a decade, with quarantine before public viewing. Tech and drones: Taiwan pushes a China-free drone hub pitch as exports surge, with government backing aimed at scaling unmanned aerial systems. Sports: Nigerian hurdler Tobi Amusan won women’s 100m hurdles in New Taipei with a meet record 12.72s.

U.S.-Taiwan Security Talks: A senior U.S. diplomat urged Taiwan to “spend smarter” on China deterrence, saying drones and unmanned systems can deliver faster balance as Washington weighs a proposed $14 billion arms package. Cross-Strait Military Pressure: Taiwan reported coordinated Chinese coast guard and survey activity near the Pratas (Dongsha) Islands, warning of heightened provocation and escalation risk. Maritime Lawfare: China launched a special maritime law-enforcement operation east of Taiwan, citing Japan-Philippines EEZ talks that Beijing says overlap its Taiwan-area claims. Defense Modernization: Taiwan’s navy is moving to upgrade ship air defenses, including Hai Chien II missile integration after recent live-fire testing. AI & Chips at Computex: Synology unveiled a private AI and cyber-resilience roadmap, while Computex coverage underscored Taiwan’s role in the AI supply chain and “agentic” computing push. Zoo & Culture: Taipei Zoo received a pair of red pandas from China for a month-long quarantine, the first exchange in over a decade. Local Life: A Taiwan postal worker was fatally stabbed in Miaoli, prompting union calls for better safety measures.

AI & Chips: Nvidia CEO Jensen Huang said his Taiwan spending has surged to about $150B a year, underscoring Taiwan’s role as the AI silicon hub as Computex keeps AI front and center. Cross-Strait Security: Taiwan accused China of a coordinated coast guard and survey operation near the Pratas Islands, calling it highly provocative. Defense Policy: The U.S. House Armed Services Committee advanced a FY2027 defense bill that includes up to $1B to help Taiwan strengthen self-defense, including unmanned systems and resilient communications. Capital Markets: President Lai said Taiwan wants to reshape its capital market into an “Asian Nasdaq” to help global startups raise funds, citing relaxed trading rules and Taiwan’s AI ecosystem. Energy Resilience: Experts urged Taiwan to decentralize and harden its power system, pointing to lessons from attacks on Ukraine’s energy infrastructure. Economy & Markets: Taiwan’s forex reserves rose to $605.07B at end-May, while foreign investors’ holdings hit a record near $1.9T. Diplomacy & Travel: Vice President Hsiao Bi-khim begins a five-day visit to Palau to deepen ties and review Taiwan-backed projects. Weather Watch: Tropical Depression Ester moved away from Taiwan’s monitoring area, while the southwest monsoon continues to bring rain and strong gusts across parts of Luzon. Wildlife Exchange: Taipei Zoo received two endangered red pandas from China, with a month-long quarantine before a public debut.

Cross-Strait Security: Taiwan’s coast guard reported a tense standoff with a Chinese vessel near the Pratas Islands, after warnings were ignored and the ship turned into restricted waters. Defense Tech: Taiwan carried out the first sea-based live-fire test of the Altius-600M loitering munition, validating a full “find-to-strike” engagement chain to complicate any amphibious landing plan. China’s Pressure Campaign: A mainland spokesperson condemned Taiwan’s DPP over alleged smearing of the Straits Forum, accusing Taipei of undermining cross-strait exchanges for political gain. US-Taiwan Politics: KMT chair Cheng Li-wen told a Harvard seminar that peace can be maintained if Taiwan avoids “de jure independence,” stressing deterrence and dialogue. AI Supply Chain & Markets: TSMC warned advanced AI chip demand will outstrip supply for years, while Wall Street took a hit as semiconductors sold off sharply. Tech Industry Spotlight: At Computex 2026, Taiwan’s PC makers leaned into cooperation as Apple’s MacBook Neo pushed the market toward budget-friendly designs. Weather Watch: Tropical Depression Ester kept TCWS No. 1 up over Batanes and is expected to move toward Taiwan, with minimal to minor threat there.

Cross-Strait Security: Taiwan reported another tense coast-guard standoff near the Pratas Islands, with a Chinese vessel “forcing its way” into restricted waters and both sides trading verbal warnings. AI & Industry: Nvidia CEO Jensen Huang wrapped up a Taiwan trip and said Nvidia has doubled capacity for the second half of 2026 to meet strong demand, while Foxconn raised its Q2 outlook after record May performance and Intel/TSMC remain central to the AI supply chain. Tech Showcase: COMPUTEX 2026 in Taipei drew 111,312 buyers/visitors from 152 regions and highlighted “physical AI” and robotics as the next industrial frontier. Politics & Diplomacy: China banned four New Zealand MPs for a year over a Taiwan visit, prompting New Zealand and Australia to protest. Markets: Taiwan shares closed down 1.33% after a wild session as US tech weakness hit sentiment, with financial stocks helping steady the index. Local Life: The Formosa Railroad Bento Festival opened at Taipei Main Station with record booths and dozens of bento varieties.