AI-PC Momentum in Taipei: Nvidia and Microsoft (with Arm) teased “a new era of PC” ahead of Computex, fueling speculation about Arm-based Windows laptops using the rumored N1/N1X chips. Semiconductor Dealmaking: Cyient agreed to acquire TAO Digital Solutions for US$218M to expand AI-native data and product engineering. Power & Inflation Watch: CPC will keep Taiwan’s gasoline/diesel prices steady next week, while Taipower posted an April pre-tax deficit of NT$4.7B as Middle East-driven LNG costs rose. Rates Likely Unchanged: Taiwan’s central bank is expected to hold interest rates steady for the 9th straight quarter despite AI-fueled growth. Defense Budget Pressure: President Lai said legislature cuts to a special defense budget left production lines underfunded, and he plans alternative funding to protect air defense and unmanned systems. Global Security Signals: US Defense Secretary Hegseth urged allies to boost spending and denied any Taiwan arms pause tied to Iran, while China’s nuclear build-out claims via satellite imagery added to regional risk. Corporate Cash Returns: Foxconn/Hon Hai shareholders approved a record NT$7.2 per share cash dividend for 2025. Energy Storage Investment: Sumitomo’s STP will invest in a 694MW UK BESS portfolio via Gresham House.