Japan-Taiwan Security & Industry Ties: President Lai met a Japan Forum for Strategic Studies delegation, underscoring disaster solidarity and pushing trilateral cooperation on trade, high-tech security, and resilience. Defense Budget Push: Taiwan’s Cabinet is preparing a 2027 defense budget above NT$1.1T (about +16%), crossing NT$1T for the first time as Taipei expands drones, missiles, and coastal defenses. Drone Manufacturing: Taiwan is scaling drone production after studying Ukraine’s battlefield lessons, aiming for mass output and stockpiles of affordable systems. Semiconductor Supply Chain: Sony and TSMC plan a ¥1T joint image-sensor venture in Kumamoto, targeting mass production as early as 2029 and linking sensor tech to “physical AI” for cars and robotics. Critical Materials Pressure: China’s tungsten-related exports to Japan stayed at zero after further dual-use controls, highlighting how mineral policy can reshape industrial inputs. Maritime & Infrastructure Security: A new ANU report warns Indo-Pacific submarine cables face growing attack risk, urging faster monitoring and repair—citing incidents near Taiwan. Biotech Collaboration: HanchorBio and NTU’s Taiwan Cancer Moonshot team signed an MoU to accelerate biomarker-driven precision immunotherapy. Diplomacy with Economic Angle: St. Vincent and the Grenadines PM Godwin Friday is set to visit Taiwan for 45 years of ties, with agriculture, blue economy, and technology on the agenda. Textiles & Sustainability: Intertextile Apparel spotlights sustainability and digitalization, with Taiwan among participating pavilions, while Yarn Expo Autumn 2026 expands cotton sourcing and traceable, recycled yarn options. Market Mood: Taiwan shares edged higher as investors cooled rate-hike fears after US jobs losses data, with tech and chip names leading gains.