Taiwan Inflation Watch: Taiwan’s CPI rose 2.54% y/y in July, easing from June’s 2.59% but still above the 2% alert threshold; core CPI was 2.38% and dining-out inflation hit 3.05%, while producer and import prices jumped sharply, raising imported-inflation concerns. Semiconductor Supply Chain Pressure: TSMC is reportedly holding about $1B of finished Apple A20 Pro chips because a key packaging step can’t proceed without LPDDR5X mobile memory, underscoring how memory bottlenecks can stall advanced chip assembly. Defense Procurement Gridlock: Taiwan’s drone budget passed in May 2026 but lawmakers removed funding for domestically produced drones; a new procurement push is stuck in committee talks, risking no major domestic drone contracts through 2026. AI Hardware Bottleneck: Memory makers are said to have sold out all 2027 DRAM/HBM capacity, intensifying the “RAMaggedon” squeeze that’s already feeding into higher consumer device prices. Industrial & Energy Projects: Formosa 4 is set to close by year end, while Taiwan’s Fengmiao 1 offshore wind export cable and substation works are completed. Business & Connectivity: EVA Air will launch nonstop Taipei–Delhi flights on Dec. 1, boosting India–Taiwan travel links for business and tech demand. Consumer Tech Deal: Bain Capital agreed to acquire Gong cha to accelerate global expansion, with a focus on Japan, South Korea, and scaling in the U.S.