AI Chip Smuggling Crackdown: Taiwan prosecutors expanded raids tied to alleged diversion of Nvidia AI servers to China, Hong Kong and Macau, targeting Super Micro’s Taiwan office plus Albatron Technology and Chief Telecom, after earlier seizures of about 50 Nvidia-equipped servers and claims of forged export documents. Defense Tech Policy: Taiwan’s drone procurement debate sharpened as the KMT proposed an NT$240bn, six-year unmanned systems plan using the general budget, while the TPP floated a separate bill—both aiming to keep local drone supply chains moving amid stalled government efforts. Cybersecurity & Supply Chain: A Tata Electronics ransomware breach reportedly exposed sensitive iPhone 18 Pro supplier lists, component mappings and prototype photos on the dark web, raising risks for Apple’s tightly managed global manufacturing network. Semiconductor Supply Resilience: Reports say TSMC is building a more localized DRAM supply chain in Taiwan by partnering with Winbond, aiming to reduce memory bottlenecks for AI hardware. Market Pulse: Taiwan manufacturing business sentiment improved in May to its highest since March 2025, with AI-driven demand and easing Middle East tensions cited by TIER. Design & Industry Recognition: Taiwanese designer Hsieh Jen Lee’s modular armchair “Day Go” won a Bronze A’ Design Award, highlighting circular-economy, design-for-disassembly thinking.