AGP Executive Report

Tech-Driven Growth: Taiwan’s central bank expects strong demand for emerging technologies to support exports and private investment into 2027. It forecasts 5.82% growth next year, easing from this year’s unusually high base. AI Supply Chain: Anthropic’s IPO filing warns that disruption at TSMC could constrain its access to advanced chips, underscoring how much the AI boom depends on Taiwan’s manufacturing capacity. Meanwhile, surging AI-server demand is tightening supplies of advanced circuit boards. Supply Security: TSMC is exploring factory-equipment motors that avoid rare-earth magnets as China tightens export controls. Taiwan’s ITRI is also planning a rare-earth plant aimed at meeting half the island’s demand by 2030.

Rare-Earth Supply: ITRI plans a plant to meet half of Taiwan’s rare-earth demand by 2030, as the island looks to expand local output amid tighter Chinese export controls. Chip Design: Taiwan’s Egis is partnering with France’s SiPearl on CPU chiplets for Europe’s sovereign AI ambitions. AI Hardware: A U.S. robotics firm plans a Taiwan facility for CoWoS optical-inspection equipment, targeting initial shipments by year-end. Taiwan’s PCB output is also expected to hit a record, though AI-driven demand is exposing supply-chain risks. Research and Industry: NTU has opened chip facilities to university researchers, while September industrial production rose 19% year over year for its 31st straight monthly increase.

Chiplet Partnership: Taiwan’s Egis Group and France’s SiPearl have launched a CPU chiplet collaboration, the first project under a bilateral R&D program that supported six joint projects and more than NT$1.2 billion in investment in 2025. Supply-Chain Security: Taiwan is moving to reduce reliance on China for rare earths: ITRI plans a plant aimed at meeting half the island’s demand by 2030, while TSMC is seeking chipmaking equipment that avoids Chinese rare-earth magnets. AI-Driven Growth: Taiwan ranked second in the IMF’s 2026 growth forecast at 10.7%, with technology demand and AI development cited as key drivers; September industrial production also rose for a 31st straight month. Talent and Research: Micron is widening recruitment in South Korea for engineers to work at its Taiwan fabs, as its Taiwan unit introduces a new profit-sharing framework after worker feedback. NTU has also opened chip facilities to university researchers.

AI-led Growth: The IMF forecasts Taiwan’s economy will grow 10.7% in 2026, second-fastest globally, driven by technology demand and AI. Rare-Earth Supply: Taiwan’s ITRI aims to produce 500 metric tons of rare-earth oxides annually by 2030—enough to meet half of domestic demand—as the island seeks to reduce reliance on China. TSMC is also seeking equipment alternatives that avoid Chinese rare-earth magnets. Chip Research: National Taiwan University has opened chip facilities to university researchers, expanding access to advanced semiconductor research. Micron Workforce: Micron Taiwan unveiled quarterly profit-sharing and wage increases after union feedback, aiming for more predictable compensation.

AI and Drone Partnerships: Taiwan’s foreign minister urged closer cooperation with Europe on trusted AI and drone supply chains, linking the industries to economic and national security. A proposed technology park in Poland would focus on AI data centers, smart cities and electric vehicles. Rare-Earth Resilience: ITRI plans a demonstration plant targeting 500 tonnes of annual output by 2030—enough to meet half of Taiwan’s demand. Construction is slated for completion by 2028, as TSMC also explores ways to reduce reliance on rare-earth components in factory equipment. Heat-Tolerant Crops: Researchers from Taiwan’s World Vegetable Center and South Korea used 3D multispectral scans to track heat responses in Chinese cabbage seedlings, identifying four tolerance strategies that could help guide crop development.

Trusted Tech Links: Taiwan’s foreign minister urged closer cooperation with Europe on trusted AI and drone supply chains, pointing to Taiwan’s strengths in semiconductors, AI servers and drone production. A proposed technology park in Poland could support AI data centers, smart cities and electric vehicles. Critical Minerals: ITRI plans a rare-earth demonstration plant designed to supply half of Taiwan’s needs by 2030. Construction is targeted for completion in 2028, as Taiwan also seeks alternatives to rare-earth components in chipmaking equipment. Climate-Ready Crops: Researchers from the World Vegetable Center in Taiwan and South Korea used 3D multispectral scanning to track heat responses in 18 Chinese cabbage varieties, identifying four tolerance strategies that could help breeders develop more resilient crops.

Critical Materials: Taiwan’s ITRI plans a rare-earth demonstration plant capable of producing 500 metric tons a year—about half the island’s demand by 2030. Construction is targeted for completion by 2028, as TSMC also seeks alternatives to rare-earth components in its factory equipment. Cybersecurity: Taiwan’s digital ministry urged operators to patch a PHP flaw affecting software used by more than 28,000 public-facing websites. No local attacks had been reported, but officials warned compromised sites could show no obvious signs. Chip Industry: Micron workers in Taoyuan rejected the company’s proposed profit-sharing plan, renewing pressure for a larger share of gains from AI-driven chip demand. Separately, National Taiwan University opened chip facilities to university researchers, expanding access to semiconductor research infrastructure.

Cybersecurity: Taiwan is racing to patch a critical PHP flaw affecting more than 28,000 public-facing websites. No attacks have been reported locally, but officials warn compromised sites may show no obvious signs. Chip Supply Chains: TSMC is exploring factory equipment that avoids Chinese rare-earth magnets, aiming to reduce the risk of export restrictions disrupting chip production. AI and Labor: Micron workers in Taiwan have struck over profit-sharing, seeking a larger share of booming chip profits. Meanwhile, Taiwan’s PCB output is expected to hit a record, though the AI-driven surge is exposing supply-chain risks.

Typhoon Disruptions: Super Typhoon Champi shut schools and offices across most of Taiwan, canceled hundreds of flights and closed the stock market, disrupting travel and transport. AI Supply Chain: Taiwan’s PCB industry is forecast to reach US$35.7 billion in output this year, topping NT$1 trillion for the first time. But makers warn that material shortages, long equipment lead times and tougher quality demands could slow expansion. TSMC is also seeking chipmaking equipment that avoids Chinese rare-earth magnets. Edge AI: Taiwan-based Getac launched rugged B360X laptops with up to 180 TOPS of AI compute, aimed at frontline workers who may lack reliable cloud access. Chip Workforce: Micron workers in Taiwan staged strike action over sharing AI-driven profits; the company has since reached a deal with its Taichung union. Space Research: Taiwan’s space agency launched two more satellites in its CubeSat program.

Supply-Chain Resilience: TSMC is asking equipment suppliers to find factory automation motors that do not rely on rare-earth magnets, reducing exposure to China’s dominance of the materials. Workforce: Micron workers at its Taoyuan plant staged a 24-hour warning strike, seeking a formal share of profits from the AI-fueled boom; production was not directly halted. Chip Partnerships: Taiwan’s Egis and France’s SiPearl will jointly develop the Mobius100 CPU platform, targeting high-performance computing and AI, and plan to expand into Europe, the Middle East and Africa. Industrial Safety: Four workers died after a fall at a TSMC 2-nanometer fab construction site in Kaohsiung. Global Growth: Taiwanese storage maker Synology reported strong double-digit sales growth in Malaysia, driven by demand from government and healthcare customers. Research Links: Taiwan Textile Research Institute and India’s SITRA signed a pact to work on medical textiles, specialty fibers and sustainable processing.

Chip Labor: A small group of Micron workers in Taoyuan began Taiwan’s first semiconductor-industry strike, seeking a greater share of AI-driven profits; a separate union in Taichung has reached a deal with the company. AI Supply Chain: Nvidia is expanding capacity across chip testing, packaging, substrates and optics. Taiwan’s KYEC will receive a reported US$1.1 billion capacity advance, while Unimicron and SPIL are among partners set to scale production. Fab Safety: Four workers died in an accident at a TSMC 2nm fab construction site in Kaohsiung, renewing concerns about safety at major chip projects. Space Science: Taiwan’s space agency launched two more CubeSats as part of its satellite program. Energy and Chips: Taiwan’s semiconductor electricity use hit a record in September, underscoring the growing power needs of the island’s chip industry.

Micron Labor Dispute: A Taoyuan union says it will stage a 24-hour strike Thursday over profit-sharing, despite a separate union at Micron’s larger Taichung site reaching an agreement. Any effect on production remains unclear. Fab Safety: The death toll from an accident at TSMC’s Kaohsiung 2nm fab construction site has risen to four. AI Supply Chain: Nvidia plans to expand capacity with six partners, including Taiwan’s KYEC, SPIL and Unimicron, across testing, packaging and other key components. Energy Demand: Taiwan’s semiconductor electricity use hit a record in September, underscoring the power needs of the island’s expanding chip industry. Smart City AI: An AI video-monitoring system has begun live operation in Hsinchu County, where it passed a cybersecurity review and met the county’s 90% detection-accuracy requirement.

Micron Labor: Micron reached an agreement with its Taichung union, ending mediation scheduled for Oct. 22. The deal eases immediate disruption concerns after Taoyuan workers planned a one-day strike over profit sharing. AI Export Boom: Taiwan’s September exports hit a monthly record, rising more than 60% year on year as demand for chips and AI hardware powered shipments. TSMC Momentum: TSMC posted record third-quarter net profit of NT$763 billion, while its 2nm process rapidly gained revenue share and AI chip demand continued to outstrip supply. Chip Policy: Taiwan plans to criminalize unauthorized AI-chip exports to China, tightening controls as it deepens its role in U.S.-linked semiconductor supply chains.

Fab Safety: Three workers were reported killed and another injured in a fall at TSMC’s Fab 22 construction site in Kaohsiung. Work has been halted as authorities investigate a suspected structural failure. AI Chip Demand: ByteDance, Alibaba and Tencent ordered more than three million Nvidia RTX PRO 5500 cards, worth over US$35 billion, but Nvidia warned it may supply only a fraction of the requested volume. Micron Labor: Taoyuan union members plan a one-day strike on Oct. 22, pressing for a concrete profit-sharing proposal as talks continue. Research Reactors: National Tsing Hua University and NuCube Energy will explore a US-made microreactor for research and medical use, with regulatory approval needed and a possible 2031 start. Chip Export Rules: Taiwan is moving to criminalize unauthorized exports of AI hardware to China, tightening controls amid shifting US-China trade rules.

AI Export Controls: Taiwan plans to make unauthorized exports of advanced AI chips and servers to China a criminal offense, tightening rules that could affect both chip shipments and complete computing systems. No start date has been announced. Chip Supply Chain: Micron workers in Taoyuan plan a Thursday strike in support of bonus negotiations at the company’s Taichung operations, raising labor uncertainty at a key DRAM and high-bandwidth memory hub. AI Infrastructure: MiTAC Computing plans to invest NT$12.62 billion in Taiwan server manufacturing, while National Tsing Hua University will explore microreactors with NuCube Energy for power, research and medical uses. Energy Policy: An NTHU scholar urged Taiwan to set measurable targets and clearer funding and waste-management rules for advanced nuclear projects. Market Jitters: Asian tech shares slid amid doubts about returns on AI spending; TSMC fell even as Taiwan’s Taiex edged higher.

AI Infrastructure: Taiwan’s Wiwynn and chip designer GUC helped demonstrate a live AI rack using co-packaged optics at the OCP Summit, a step toward proving the technology works at full-system scale. TrendForce expects global AI server shipments to rise 32.2% this year to 2.82 million units. Chip Industry: Micron workers in Taiwan have authorized a strike over bonuses, as President Lai urges negotiations; the company employs about 15,000 people on the island. TSMC’s latest results underscore AI’s weight in its business: high-performance computing made up 68% of third-quarter revenue. Clean Energy Research: Taiwan researchers have found ways to boost microalgae feedstock for bioethanol, pointing to a possible route to more efficient renewable fuel production.