AI Hardware & Enforcement: Taiwan escalated its crackdown on advanced AI chip diversion to China, with raids tied to Super Micro and connected firms, including searches at multiple locations and homes of suspects as prosecutors pursue alleged Nvidia GPU smuggling. Compute Power in Taiwan: NCHC’s Nano4 supercomputer re-ranked to No. 33 on the Top500 list, underscoring Taiwan’s push to build homegrown AI computing capacity with Nvidia-based systems. New AI Inference Startup: Etched emerged from stealth with $800M raised to build AI inference chips using TSMC’s N4P process, targeting rack-scale deployments and production of inference systems for major model workloads. AI in Medicine: Researchers trained an AI system to spot sudden cardiac death risk from a short ECG, aiming to make defibrillator decisions more accurate than today’s reliance on ultrasound-based measures. Cross-Strait Tech & Security Framing: A Taiwan-focused analysis argues the island’s role in AI now spans semiconductors, packaging, servers, energy-efficient hardware, and trusted communications—positioning Taiwan as an AI hardware ecosystem for democracies. Market Mood & Risk: Investors weighed AI spending returns and valuations as tech shares wobbled, while Taiwan’s manufacturing sentiment improved in May on AI-driven demand and easing Middle East tensions. Geopolitics Watch: China’s “ethnic unity” law drew Taiwan expert warnings about extraterritorial reach, while Taiwan’s coast guard reported a “gray zone” campaign normalizing Chinese incursions around Taiwan-controlled waters. Tech Supply Chain Shock: A major iPhone 18 Pro leak tied to a Tata Electronics cyberattack exposed supplier lists and photos, adding pressure to Apple’s tightly controlled manufacturing network.