Taiwan-US Tech Security: Taiwan prosecutors expanded raids tied to alleged AI server smuggling, searching Super Micro’s Taiwan office and two local firms after earlier seizures of Nvidia-equipped servers—raising the stakes for Taiwan’s semiconductor supply-chain compliance. Defense Tech & Procurement: The KMT unveiled a rival NT$240bn, six-year drone plan, aiming to fund unmanned systems via the general budget and tighten oversight—heating up the island’s drone procurement standoff. Manufacturing Reshoring: Taiwan’s domestic production share of export orders hit a record 52.9% in 2025 as AI and cloud demand boosted IC/server output and firms reduced reliance on China/Hong Kong. Cyber & Consumer Electronics: A ransomware breach at Tata Electronics reportedly exposed sensitive iPhone 18 Pro supplier/component details on the dark web, threatening Apple’s tightly held supply relationships. AI Hardware Supply: TSMC is reportedly building a more local DRAM supply chain with Winbond to ease memory bottlenecks for AI servers. Market Pulse: Taiwan manufacturing business sentiment improved in May to its highest since March 2025, led by AI-driven electronics demand and full-capacity DRAM operations. Energy & Trade Spillover: Polyester feedstock prices in Asia fell as the Middle East war premium unwound, potentially easing input costs for textile producers. Logistics Disruption: Evergreen’s Oman-area ship attack in the Strait of Hormuz left crew safe and the vessel seaworthy, with cargo reportedly unharmed. Design & Industry Culture: Taiwanese designer Hsieh Jen Lee’s modular “Day Go” armchair won a Bronze A’ Design Award, spotlighting circular-economy product design.