AGP Executive Report

Oil Shock Hits Asia Markets: Asian stocks slid as Brent pushed past $100 for a second day amid US-Iran strikes around the Strait of Hormuz, reviving inflation and rate-hike fears. Cross-Strait Tech & Energy Risk: A Taiwan “silicon shield” debate resurfaced as semiconductor-driven electricity demand and LNG reliance raise vulnerability if blockade scenarios disrupt imports. Taiwan Exports Keep Breaking Records: Taiwan’s August exports jumped 41% YoY, led by machinery/electrical and semiconductor growth, with strong demand from Mexico, Australia, the Philippines and India. Semiconductor Concentration Warning: South Korea’s central bank flagged extreme KOSPI volatility tied to semiconductor concentration and leveraged ETF/retail position unwinds. AI Search Pressure on Services: A Taiwan-linked marketing analysis says AI overviews can erase clicks for top-ranked firms in healthcare, finance and professional services unless content is independently cited. Wealth & AI Marketing Push: Standard Chartered is expanding its AI-driven “wealth” campaign across Asia, using local platforms including LINE in Taiwan. Automotive Cybersecurity Certification: Silicon Motion earned ISO/SAE 21434 certification, signaling tighter security requirements for connected vehicles. Regional Diplomacy Noise: China and the Philippines traded barbs over South China Sea claims after a note incident at a defense forum. Insurance Partnership: GAIP added Cathay Life as a principal partner to tackle protection gaps and emerging risks across Asia. Taiwan Healthcare Expo Manila: Taiwan’s Healthcare Pavilion will showcase hospitals and med-tech firms at Taiwan Expo 2026 in the Philippines.

Cross-strait business stance: China’s Taiwan Affairs Office said the mainland remains the “best choice” for Taiwan firms, citing strong trade growth and urging businesses to expand despite Taiwan’s warnings. Semiconductor supply chain: TSMC plans to use ASML’s next-gen High-NA EUV machines for high-volume production starting in 2030, aiming to meet AI-driven complexity; TrendForce also put TSMC’s Q2 pure-play wafer foundry market share at a record 72.5%. AI chip race: OpenAI and Samsung deepened their partnership, with Samsung set to produce a custom AI chip for OpenAI, while OpenAI’s earlier custom chip work relied on TSMC. Onshoring data-center hardware: Amazon and WiWynn will expand a Texas server rack and data center facility, pushing cumulative investment above $1.6B and targeting up to ~4,000 jobs. Taiwan trade: Taiwan’s August trade surplus rose to $22.3B as exports and key electronics categories surged. Labor enforcement: Taiwan’s labor ministry warned foodpanda over docking couriers’ pay for late deliveries, citing violations of the delivery platform act. Security & politics: A Taipei security dialogue highlighted Taiwan Strait risks and election interference concerns, as Taiwan also practiced nuclear-plant evacuation drills.

Taiwan Strait Risk: The top U.S. diplomat in Taipei warned that any conflict across the Taiwan Strait would hit the global economy harder than World War II, and said the upcoming U.S.-China summit is a chance to avoid miscalculations. Semiconductor Supply Chain: AMD reiterated TSMC as its primary wafer partner while keeping Intel foundry options open, as Intel’s stock jumped on CPU price-hike talk and “Terafab” momentum. AI Hardware Momentum: Nvidia’s latest earnings and guidance kept investors focused on AI capex, while Taiwan’s chip ecosystem continues to expand amid record demand. Cross-Strait Tech Policy: Taiwan’s labor funds plan to restrict new fossil-fuel investments from 2030, as climate-risk scrutiny grows. Regional Markets & Oil: Asian stocks were mixed as Brent pushed toward $100 amid Middle East supply fears and ahead of key U.S. inflation data. Japan Chip Chemical Curbs: China began requiring cash deposits up to 99.2% on Japanese semiconductor chemical imports after an anti-dumping probe. Business & Travel: Palau is running search-and-rescue for a missing Singaporean diver, highlighting growing regional travel links that include Taiwan-Koror flights.

Semiconductor Supply Chain: TSMC and ASML teamed up with Intel and Samsung to push the industry toward 12-inch photomasks for High-NA EUV, aiming for a pilot line by 2031 and full readiness by 2033—an effort meant to ease long-standing throughput limits. High-NA EUV Milestone: Intel and ASML also confirmed High-NA EUV has processed over one million 300mm wafers, including production layers for Intel’s Panther Lake, underscoring Taiwan’s central role in the AI chip ramp. AI-Driven Hiring: Taiwan’s chip sector is hiring faster, with 104 Job Bank reporting about 47,000 openings per month and roughly a quarter tied to AI, as firms expand manufacturing abroad. Solid-State Batteries: ProLogium says it has started mass-producing all-solid-state cells in Taiwan at 381 Wh/kg, with testing under China’s GB/T standard—though scale remains the key question. Cross-Strait/Regional Risk: Taiwan’s MOFA said three Taiwanese were arrested and indicted in Myanmar over alleged online fraud, as regional anti-scam enforcement tightens. Tourism & Travel: Taoyuan Airport expects more than 930,000 passengers during the Mid-Autumn Festival/Teachers’ Day stretch, with peak outbound on Sept. 24-25. Education Benchmark: Taiwan students placed 4th in science and 3rd in reading in PISA 2025, even as global scores declined.

Taiwan-Japan Diplomacy: Deputy FM Chen Ming-chi met a Tokyo University delegation in Taipei to discuss cross-strait issues, Taiwan-Japan ties and expanding trade cooperation, with semiconductors, drones and economic security on the agenda. Semiconductor Trade Friction: China launched preliminary anti-dumping measures on Japan’s semiconductor chemical dichlorosilane, requiring cash deposits up to 99.2%, as tensions tied to Taiwan spill into chip supply chains. Semicon Taiwan 2027: SEMI moved SEMICON Taiwan 2027 to Aug. 18-20, citing growing demand for exhibition space as AI drives more exhibitors and forums. Chip Diplomacy Angle: Taiwan is positioning itself as a “trustworthy, democratic partner” in the AI supply chain, aiming to share chip-making dividends with like-minded allies. Data Privacy Risk: South Korea’s Gangnam Unni platform suffered a breach exposing consultation details and photos of about 220,000 users, including users in Taiwan. Retail Expansion: Paik’s Dabang Coffee (The Born Korea) signed a 10-year master franchise deal to enter Taiwan in 1H 2027, targeting 10 outlets in 2027 and 150+ within five years. Energy & Budget: Taiwan proposed a record supplementary budget to cushion Middle East-driven energy cost pressure, including major funding for CPC Corp and price-stabilization support. Markets Watch: Yen strength extended as traders bet on BoJ rate hikes while tech stocks rallied again across Asia.

Cross-border Healthcare: AXA Hong Kong and Macau launched GBA EverGuard medical insurance for Greater Bay Area residents, citing survey data showing Hong Kong patients worry about high costs and long waits and want trusted navigation to mainland care. Semiconductor Diplomacy & Investment: Taiwan used SEMICON Taiwan to pitch itself as a “reliable and democratic” AI chip supplier, while President Lai said Taiwanese firms plan an extra US$20bn in U.S. investment and TSMC continues Arizona expansion. AI Chip Momentum: TSMC raised guidance on soaring demand for advanced chips as Asian markets rallied on AI optimism. Supply Chain & Manufacturing: Hon Hai (Foxconn) set a goal to reach 100% green electricity at global sites by 2040, reporting 68.37% green power use in 2025. Regulatory Crackdown: Taiwan’s Ministry of Justice Investigation Bureau reportedly probed 166 cases of illegal Chinese ownership since 2020, leading to 36 convictions, mostly tied to semiconductor R&D/design. E-commerce & ESG: PChome halted sales of products containing badger hair after animal welfare concerns. Cybersecurity: Gangnam Unni disclosed an API-related breach exposing data of about 219,665 users across multiple countries, including Taiwan. Air Travel Fees: Starlux will raise its booking fee to US$33 from Oct. 7, following earlier increases by other Taiwan carriers.

Semiconductor Diplomacy: Taiwan used SEMICON Taiwan 2026 to pitch itself as a democratic, reliable AI chip supplier while signaling it’s open to sharing more know-how with like-minded partners, as the US presses TSMC to expand manufacturing stateside. Cross-Strait Tech Pressure: Reuters reports Taiwan is also navigating uncertainty around US tariff relief tied to investment plans, with officials highlighting “shared prosperity” and rule-of-law as differentiators. Public-Sector Cloud Push: Hsinchu City selected NAVER Cloud’s LINE WORKS as its official business collaboration tool, marking a first large-scale Taiwanese public-sector entry for the platform and setting up AI-enabled admin pilots. AI Hardware Momentum for Asia: Goldman Sachs raised its Asia ex-Japan index target, citing AI-driven hardware demand across North Asia, and upgraded Taiwan to overweight. Taiwan Market Watch: Taiwan stocks ended a three-day slide modestly higher on Friday, but traders expect Monday to stay choppy amid global rate worries. Geopolitics & Shipping Risk: A separate analysis warns China could coerce by making navigation around Taiwan too costly and legally ambiguous, drawing parallels to Strait of Hormuz disruptions. Regional Business Signals: Zyxel rolled out identity tools for its Nebula cloud platform, aiming to cut IT workload across multi-site networks.

AI & Semiconductors: Foxconn signaled stronger momentum ahead, with reports pointing to AI server demand lifting August sales and expectations for Q3 results, while Taiwan’s chip ecosystem continues to ride the AI wave. Cross-strait & Security: Taiwan is also tightening the screws on tech firms with illegal Chinese ownership, with investigations and convictions since 2020, as policymakers warn of rising China risks targeting Taiwanese youth. Trade & Markets: The US-Taiwan trade gap is in focus again, with reporting that it could reach about US$200B in 2026, while broader market sentiment remains sensitive to crude oil and foreign fund flows. Finance & Housing: Taiwan’s mortgage curbs are squeezing the middle class, pushing more high-end buyers toward cash and leaving loan screening times longer. Aviation Costs: EVA Air will raise excess baggage fees from Sept. 29, citing higher fuel and operating costs. Policy & Regulation: Taiwan’s financial regulator is drafting virtual asset service rules for Q1 2027, adding to the country’s push to formalize crypto oversight.

AI Hardware Momentum: Foxconn expects Q3 results to beat market expectations as AI demand and the seasonal ICT peak kick in, while the company also reported record August revenue of NT$921.8 billion (+52% YoY). Semiconductor Demand Pulse: Private surveys point to expanding factory activity across China, Japan and South Korea in August, with AI-linked chips and equipment helping offset cost pressures. Taiwan in the Crosshairs: Taiwan warned that rising China risks target young Taiwanese through scams, “united front” influence campaigns and dubious job offers tied to tourism and cultural exchanges. Markets Watch: Investors are weighing Fed uncertainty after Waller’s comments, with rate-hike bets and oil-driven inflation fears shaping regional trading sentiment. Regional Geopolitics: The Pacific Islands Forum in Palau reproached China over an intercontinental ballistic missile test and urged 24-hour advance notice, amid tensions tied to Taiwan participation. Trade & Policy: Taiwan is cracking down on Chinese businesses operating without proper permits, citing shell-company tactics and illegal ownership structures. Semicon Ecosystem: Taiwan’s chip industry continues to push global partnerships and investment outreach as AI infrastructure spending lifts demand across the supply chain.

AI Hardware Surge: Foxconn (Hon Hai) posted record August revenue of NT$921.8 billion (about US$29.1 billion), up 52% year on year, as AI server demand kept accelerating; the company also said it expects third-quarter performance to beat market expectations, while flagging “volatile” global politics and economics. Cross-Strait Security & Youth Risks: Taiwan warned that rising China-linked risks are targeting Taiwanese youth via scams, “united front” style influence campaigns, and fraudulent job offers tied to tourism and cultural exchanges. China Pressure Tactics: China’s revised National Defense Mobilization Law, effective Oct. 1, signals plans for rapid wartime transition, with analysts saying it is aimed at Taiwan and other disputed territories. Regional Geopolitics: Pacific Islands Forum leaders in Palau condemned China’s recent ICBM test and urged 24-hour advance notice for future launches. Tech & Business Policy: Taiwan is cracking down on tech firms with illegal Chinese ownership, citing 166 investigations and at least 36 convictions since 2020. Semiconductor Diplomacy: France’s SiPearl said its Taiwan-made Rhea1 processor is now part of Europe’s push to keep strategic chip capabilities at home while leveraging TSMC manufacturing. Postal & IP Licensing: Chunghwa Post will issue a limited-edition licensed Pokémon Trading Card Game stamp sheet, with 300,000 sheets available for the Taipei World Stamp Championship.

Semiconductor Tariffs Watch: Taiwan is pushing to lock in preferential treatment for its chipmakers as the U.S. weighs new semiconductor duties and possible exemptions tied to onshore manufacturing. Trade & AI Demand: The U.S. trade deficit widened sharply in July, with AI build-out driving imports of semiconductors and computers—pushing the Taiwan goods gap to a record monthly high. Big Tech Chip Moves: Nvidia’s latest push includes a $3.5 billion investment in Taiwan’s MediaTek to deepen AI chip partnerships, while Broadcom reports booming AI semiconductor revenue as supply—not demand—remains the bottleneck. Foundry School Workforce Plan: The U.S. launches “Foundry School” to train millions of skilled manufacturing workers by 2033, aiming to support semiconductor, defense and energy capacity. Energy Security Angle: Global power disruptions and extreme weather are renewing interest in overhauling aging grid systems as AI and electrification strain electricity demand. Market Mood: Yen strength and reduced hedging are back in focus as investors reassess currency risk amid shifting dollar outlooks.

AI Chip Capital Spending & Markets: Nvidia shares pushed toward fresh highs as the AI spending cycle stays in focus, with the company also expanding its ecosystem via a near-$13bn Hugging Face deal and a $3.5bn investment in Taiwan’s MediaTek to deepen custom AI accelerators. Semiconductor Supply Chain & Cross-Strait Industry: SEMICON Taiwan 2026 wrapped with mainland and Taiwan firms signaling willingness to pool complementary strengths, while Taiwan’s chip footprint continues expanding abroad. Cybersecurity & Automation Risk: A new assessment warns frontier AI can autonomously compromise enterprise networks, raising pressure on companies to speed up defenses against automated attacks. Geopolitics & Trade Leverage: Reports say some Chinese rare-earth suppliers are refusing US shipments amid decoupling fears, highlighting how compliance and retaliation risks are reshaping critical-material flows. Energy & Industry Infrastructure: CPC Taiwan confirmed a 200°C geothermal resource at Dongshan No. 1, setting up further verification drilling and potential power development. Local Business & Manufacturing Costs: Lite-On plans a $176m stake in DCX liquid cooling to support higher-density AI data centers, while separate reporting flags rising motherboard component costs that could feed into consumer hardware prices.

Cross-Strait Watch: Taiwan’s Labor Minister Hung Sun-han is reportedly set to attend an APEC human resources meeting in mainland China later this month, a rare cabinet-level DPP-era trip that Beijing says will follow One China rules. Semiconductor & AI: Nvidia’s RTX Spark push is bringing AI PCs to market via Lenovo and Acer, with the chip developed with Taiwan’s MediaTek, while TSMC says it’s still struggling to keep up with AI demand even as it expands capacity. Markets & Rates: Asian stocks rallied as traders pared rate bets ahead of jobs data, but volatility remains tied to oil and Middle East risk; Taiwan’s weighted index was up on the day in the latest market wrap. Trade & Tariffs: The US trade deficit hit its highest level since March 2025 in July, with imports rising on AI build-out; the deficit with Taiwan also widened, underscoring how chip demand is reshaping trade flows. Travel Risk: Taiwan warned that the number of citizens detained, missing, or questioned in China rose to 426 since 2024 as Beijing prepares new entry-exit rules on Sept. 15. Regional Business Links: The 21st Taiwan-Mongolia Economic Forum wrapped in Ulaanbaatar, with Taiwanese firms focusing on biotech, healthcare, digitalization, and tourism partnerships.

US-Taiwan Chip Push: US trade deficit widened in July to $88.6bn as AI build-out lifted imports of computers, semiconductors and capital goods; the US deficit with Taiwan hit a record $20.7bn. Semiconductor Tariffs: Commerce Secretary Howard Lutnick says Washington is preparing “targeted, thoughtful” semiconductor tariffs that could offer relief for firms that manufacture in the US, while others would pay to access the market. Taiwan Investment Plan: Lutnick also said Taiwan will move 40% of chip production to the US and announce another $20–30bn in investment; Taiwan’s economy minister flagged a new $20bn round at Semicon. Nvidia Ecosystem Moves: Nvidia agreed to buy Hugging Face for $12.9bn to expand AI access, and separately invested $3.5bn in MediaTek to deepen AI data-center standards and interconnect/memory integration. Google TPU Ramp: Google is accelerating TPU mass production and expanding its Taiwanese server supply chain for next-gen inference chips. AI Hardware & Cooling: Liteon will buy a 25% stake in Poland’s DCX Liquid Cooling for about $176m to strengthen power-and-cooling platforms for AI data centers. Defense Procurement: Taiwan’s parliament approved an extra NT$145.7bn budget package largely for drones, missile defense and ammunition, with AI-related equipment included. Crypto Regulation: Taiwan’s FSC is drafting nine sets of rules under the Virtual Asset Service Act, targeting implementation in Q1 2027, with detailed licensing for exchanges, custody and stablecoins.

Semiconductor Supply Chain & AI Hardware: Micron’s Taiwan unions are moving toward a strike over bonus demands, with workers backing action and a strike vote possible this month, adding risk to AI memory supply. Semiconductor Policy & Investment: The US is weighing “targeted, thoughtful” semiconductor tariffs, with potential tariff relief tied to new US investment; officials also say Taiwan could announce an additional US$20–30 billion in investments next week. Taiwan in the Pacific: Taiwan defended its attendance at the Pacific Islands Forum in Palau after China warned of “consequences”; Palau’s president urged a “unified” Pacific response to China’s July missile test. Diplomacy & Aid Claims: Taiwan rejected a Solomon Islands newspaper report accusing it of “checkbook diplomacy” over Palau aid. Shipping & Energy Transition: Hanwha Ocean won a 1.55 trillion-won order from Yang Ming for six LNG dual-fuel container ships, with deliveries starting in 2029. Business & Markets: Oil prices eased while Asian stocks rose as investors digested signals on AI demand and expectations that US-Iran strikes may be short-lived. Tech Product Launch: ViewSonic unveiled the XG2738-2K-OLED 27-inch gaming monitor using QD-OLED, targeting esports-focused performance. Finance for the Ultra-Wealthy: UBS launched an Asia program for wealthy clients with at least US$5 million to access exclusive fund managers.

Semiconductor Boom: Taiwan’s chip sector is projected to jump about 40% in 2026 to nearly US$300 billion, as AI demand keeps pulling forward advanced manufacturing—while industry leaders warn energy supply, talent and cybersecurity are becoming make-or-break constraints. AI Hardware Race: TSMC says it’s buying chipmaking tools at nearly 2x its prior pace as it expands capacity for AI, even as construction workers and equipment deliveries remain bottlenecks. Memory Supply Tensions: Micron Taiwan unions are moving toward a strike over bonus and profit-sharing demands, just as the company posts record profits—raising the risk of fresh disruption in HBM supply. Corporate Investment Push: Eaton plans to add NT$300 million more in Taiwan through 2030 to expand UPS and power infrastructure output, targeting semiconductor and data center customers. Payments & Digital Assets: The UK’s payments regulator is tightening transparency rules for Visa and Mastercard fees, while stablecoin-related regulatory updates continue to roll out. Transport Security: THSRC is hardening radio communications after a spoofing incident that forced emergency stops and a full line inspection. Cross-Strait Diplomacy: Taiwan denied “checkbook diplomacy” claims tied to Pacific Islands Forum support, saying the report lacked evidence and was driven by malicious intent.