Taiwan’s “China-free” drone push: Carbon-Based Technology plans to more than double staff and expand into a bigger factory as Taiwan’s drone exports jumped past US$115M in Q1 2026, already beating all of 2025, supported by a NT$44.2B government plan to build a trusted, non-red unmanned aerial systems hub. AI supply-chain momentum: Nvidia CEO Jensen Huang’s Seoul trip spotlights “physical AI” and robotics, with the company hiring for a Korea R&D center and unveiling a four-pillar roadmap tied to next-gen memory and AI hardware—another reminder that Taiwan’s semiconductor ecosystem sits at the center of the buildout. Computex-to-industry software shift: At COMPUTEX Taipei 2026, Taiwan’s OTA provider Carota showed how vehicle OTA tech is being repurposed for broader “physical AI,” using remote updates and centralized orchestration to move beyond cars into robotics and industrial automation. Defense uncertainty for Taiwan: A reported US pause on a proposed $14B arms sale to Taiwan—linked to munitions needs for the Iran fight—adds pressure on Taipei to keep resilience high as Washington’s support posture looks more transactional. Trade and security spillovers: China conducted a special law enforcement operation east of Taiwan amid maritime border talks involving Japan and the Philippines, underscoring how regional shipping rules can quickly become an industry and security issue.