AGP Executive Report

Platform Competition: Taiwan blocked Grab’s US$600 million Foodpanda purchase, saying Grab’s ties to Uber could weaken competition in the island’s delivery market. Labor: Micron workers at its Taoyuan plant staged a 24-hour strike over profit-sharing, while the company and a separate Taichung union reached an agreement. The Taoyuan action did not halt production. Supply Chains: TSMC is seeking factory equipment that avoids rare-earth magnets, aiming to limit exposure to China’s control of key materials. Mobility: Foxconn will buy a 50% stake in Mitsubishi Electric Mobility for about US$728 million, joining forces on next-generation vehicle systems. Chipmaking: TSMC halted work at its Kaohsiung fab construction site after four workers died in a fall. Chip Design: Taiwan’s Egis and France’s SiPearl will develop CPUs for AI, data centers and high-performance computing, with Egis targeting a chiplet tape-out next year.

Semiconductor Labor: Micron workers in Taoyuan began Taiwan’s first semiconductor industry strike on Oct. 22, seeking fairer pay and profit-sharing as AI demand drives record memory profits. Worksite Safety: TSMC halted construction at its Kaohsiung 2-nanometer site after four workers died in a fall, renewing attention to safety at major chip projects. AI Supply Chain: Nvidia is reserving capacity across six suppliers, including Taiwan’s KYEC, SPIL and Unimicron, to expand chip testing, packaging, substrates and optical engines as supply limits growth. Digital Services: Taiwan’s competition watchdog blocked Grab’s planned US$600 million acquisition of foodpanda, citing competition concerns and Grab’s ties to Uber.

Semiconductor Safety: TSMC halted work at its Kaohsiung 2nm construction site after a fall killed four workers, renewing scrutiny of safety as Taiwan races to expand chip capacity. AI Supply Chain: Nvidia plans to expand packaging, testing, substrate and optical capacity with six partners, including Taiwan’s KYEC, SPIL and Unimicron, as demand continues to outstrip supply. Micron Labor Dispute: A Taoyuan union says its one-day strike will go ahead on Oct. 22 over profit-sharing, despite a separate agreement with Micron’s Taichung union; any production impact remains unclear. Market Competition: Taiwan’s competition watchdog blocked Grab’s US$600 million foodpanda deal, citing concerns that Grab’s ties to Uber could weaken competition in an already concentrated delivery market.

Workplace Safety: TSMC halted steel-structure work at its Kaohsiung factory site and similar work across Taiwan after four construction workers died in an accident. Chip Labor: Micron’s Taoyuan union plans a one-day strike on Oct. 22 over bonuses and profit sharing, adding pressure as Taiwan competes for semiconductor talent. Semiconductor Supply Chain: Taiwan is tightening controls on AI chip exports to China, while BASF plans to expand its semiconductor materials operations on the island. AI Demand: September exports hit a record, rising more than 60% year on year, and TSMC plans a new Taiwan 3nm fab as chip demand outstrips supply. Industrial Reach: More than 200 Taiwanese automotive suppliers are heading to AAPEX in Las Vegas to pursue U.S. buyers seeking diversified supply chains.

Workplace Safety: Three contractor workers died and one was injured after a fall at TSMC’s Kaohsiung Fab 22 construction site. Work has stopped while authorities investigate a suspected structural failure. Chip Supply Chain: ByteDance, Alibaba and Tencent ordered more than 3 million Nvidia RTX PRO 5500 cards, worth over US$35 billion at list prices, but Nvidia warned it may fill only a fraction of the orders. Micron’s Taoyuan union plans a one-day Oct. 22 strike over bonuses and profit-sharing, adding labor uncertainty as AI memory demand grows. AI-led Expansion: TSMC plans 3nm production at its second Japan plant, while Starlux is adding flights to technology hubs to meet rising chip-industry travel and cargo demand. Energy and Industry: National Tsing Hua University and NuCube will explore a U.S.-made microreactor for research and medical use, subject to regulatory approval. Offshore-wind developer CIP has also criticized Taiwan’s troubled auction rounds, renewing questions about project costs and viability. Trade and Manufacturing: Taiwan is tightening controls on AI chip exports to China and building a domestic supply chain for back-contact TOPCon solar technology.

Micron Labor Dispute: A Taoyuan union plans a Thursday strike over bonuses, adding pressure at a key DRAM and HBM production hub as talks continue with Taichung workers. Chip Export Controls: Taiwan is preparing to make unauthorized exports of advanced AI chips and servers to China a criminal offense, though the rules’ start date is still unclear. TSMC Expansion: Record AI-fueled quarterly results are strengthening the case for more capacity, while Taiwan plans a Texas industrial park to support chip suppliers serving the US market. EV Supply Chain: Hon Hai will buy a 50% stake in Mitsubishi Electric’s mobility business, deepening its push into automotive components. Energy Policy: A National Tsing Hua University scholar says Taiwan needs clear targets, funding rules and waste-management plans to turn support for advanced nuclear power into viable projects.

EV Manufacturing: Foxconn agreed to pay US$727 million for half of Mitsubishi Electric Mobility, forming a joint venture to develop EV platforms in Japan and target ¥1 trillion in sales by fiscal 2030. AI Hardware: Wiwynn, GUC and Ayar Labs demonstrated a live co-packaged-optics rack, a step toward deploying optical links in AI data centers. TSMC reported Q3 revenue of US$46.72 billion, up 41.2% year on year, with high-performance computing making up 68% of sales. Capacity Expansion: Micron opened a second AI memory packaging plant in Taichung, while MiTAC plans to invest NT$12.62 billion in Taiwan server manufacturing. Taiwan is also planning up to US$4 billion in Texas industrial parks to support AI chip suppliers. Renewable Energy: All turbines at the 1GW Hai Long offshore wind farm are now generating power, adding a major source of clean electricity to Taiwan’s grid.

Currency and Markets: Taiwan’s central bank says it may step in if the Taiwan dollar remains volatile after a sharp weekly fall, as foreign investors pulled funds from local shares amid AI-related jitters. AI Chip Supply Chain: TSMC posted a sixth straight record quarterly profit, with third-quarter revenue up 50.9% year on year, and plans up to US$64 billion in capital spending this year. AI chip demand still exceeds supply. Samsung is set to use TSMC’s 3-nanometer process for base dies in Nvidia’s next-generation memory chips, extending Taiwan’s role in the AI supply chain. Capacity Expansion: Micron opened its second AI-memory packaging plant in Taichung, while Unimicron is buying a former Bridgestone site to expand advanced-substrate capacity. Taiwan is also planning a US$4 billion Texas hub for AI chip suppliers. Automotive Manufacturing: Hon Hai is set to acquire a 50% stake in Mitsubishi Electric Mobility, expanding its automotive electronics business.

Chip Supply Chain: Samsung is reportedly turning to TSMC’s 3-nanometer process for base dies in Nvidia’s custom AI memory, bringing Samsung, SK Hynix and Micron into a shared production model. TSMC, meanwhile, posted a sixth straight record quarterly profit and raised its 2026 growth forecast as AI chip demand continues to outstrip capacity. AI Market Risks: A global selloff in technology shares is raising concerns that higher borrowing costs could slow AI infrastructure spending and hit Taiwan’s chipmakers and hardware suppliers. US Expansion: Taiwan plans a $4 billion Texas hub to bring chip suppliers closer to US manufacturers. Memory Manufacturing: Micron has opened a second AI memory packaging plant in Taichung, deepening local production capacity. Drone Exports: Thunder Tiger completed delivery of 1,520 attack drones to the US Defense Department, a $7.6 million order that tests Taiwan’s role in non-Chinese supply chains. Renewable Energy: All 73 turbines at Taiwan’s Hai Long offshore wind project are now generating power.

AI Supply Chain: TSMC says chip demand still exceeds capacity and has lifted its 2026 outlook, but a financing-driven sell-off in AI hardware stocks highlights the risk that rising costs could slow investment. US Expansion: TSMC is assessing Texas as a possible manufacturing base, while Taiwan plans a roughly US$4 billion Texas industrial hub to bring chip suppliers closer to US customers. Samsung’s US workforce investment shows the competition for skilled workers is intensifying. Taiwan Capacity: TSMC plans a new 3nm fab in Taiwan to meet AI demand. Micron has opened a second AI memory packaging plant in Taichung, and storage maker Phison reported a sharp revenue surge. Trade Policy: Taiwan is considering tighter controls on AI chip exports to China, adding another layer of change for semiconductor supply chains. Clean Energy: All turbines at the 1GW Hai Long offshore wind farm are now generating power, a boost to Taiwan’s electricity supply as industrial demand grows.

Semiconductors: TSMC reported record third-quarter profit of NT$763.1 billion and lifted its 2026 revenue growth forecast to about 44%, but CEO C.C. Wei said AI chip demand still far exceeds production capacity. The company plans another 3-nanometer fab in Taiwan. Supply Chains: Micron opened its second AI memory packaging plant in Taichung, with 2027 output already fully contracted. Taiwan is also planning a Texas industrial park, costing up to US$4 billion, to bring chip suppliers closer to US manufacturers. Trade Controls: Taipei plans to add advanced chips and AI servers to its controlled-goods list, making unauthorized shipments to China a criminal offense after legal changes. Energy: All turbines at the 1GW Hai Long offshore wind farm are now generating power, adding capacity as Taiwan’s AI boom raises electricity demand.

Chip Supply Chain: TSMC posted record third-quarter profit but says AI chip demand still exceeds capacity. It is assessing a Texas expansion, while Taiwan plans $2 billion–$4 billion industrial parks to bring local suppliers closer to US customers. AI Memory: Micron opened a second advanced packaging plant in Taichung, targeting surging HBM demand; bookings are full through 2027. Mobility: Hon Hai will pay US$728 million for a 50% stake in Mitsubishi Electric Mobility, combining Japanese vehicle-control and powertrain expertise with Foxconn’s manufacturing scale. Growth and Energy: CIER sees Taiwan’s 2026 growth reaching 12.16%, driven by technology. The 1GW Hai Long offshore wind farm is now fully online, with all 73 turbines generating power. Life Sciences: PharmaEssentia plans a US$46 million Puerto Rico plant in 2027 to expand production of its blood-cancer treatment and diversify supply.

US Supply Chain Push: Taiwan is planning $2 billion–$4 billion industrial parks in Texas to help Nvidia and other AI suppliers build a local supply chain, with industry groups leading fundraising and government support. TSMC Expansion: The chipmaker posted record third-quarter profit of NT$763 billion as 2nm chips reached 8% of wafer revenue. It forecast 44% full-year revenue growth, while weighing a Texas expansion and talks with Elon Musk’s Terafab project; TSMC says any fab it joins must be run by the company. Growth Outlook: CIER says Taiwan’s economy is set for its fastest growth in 39 years, buoyed by tech demand. Global Tek expects double-digit revenue growth as AI data-center cooling orders rise. Renewable Energy: The 1GW Hai Long offshore wind farm has brought all turbines online, adding capacity to Taiwan’s power supply. Drone Manufacturing: AeroVironment and Thunder Tiger are exploring joint production in Taiwan, including integrating Switchblade systems with unmanned platforms.

AI Supply Chain: Taiwan optical-components maker FICG plans to more than triple its Malaysian capacity by 2028, citing surging demand from AI data centers and U.S. customers seeking supply-chain alternatives. Data Centers: Formosa Smart Energy and CXIT plan to develop an AI data center at Mailiao Industrial Park and form a joint venture to provide cloud services, building on the site’s existing power and utility infrastructure. Semiconductors: TSMC posted a record NT$763 billion third-quarter profit as AI demand remained strong; 2-nanometer chips reached 8% of wafer revenue. The company is weighing Texas expansion but struck a cautious note on 2027. Overseas Expansion: Taiwan plans an industrial park in Texas, potentially worth up to US$4 billion, to help smaller suppliers serve major chip and AI companies. Economic Outlook: CIER raised its 2026 growth forecast to 12.16%, the strongest pace in 39 years, citing robust domestic demand and AI-related exports. Market Volatility: Taiwan shares fell amid a global tech sell-off over inflation and AI investment risks, despite TSMC’s results.

Chip Demand: TSMC posted a sixth straight record quarterly profit, with net income up 69% to NT$763 billion, and lifted its 2026 revenue-growth forecast to about 44%. It expects fourth-quarter revenue to jump as much as 61% year on year, but warned of uncertainty in 2027 and rising costs from capacity expansion. The company is weighing a Texas fab and talks with Elon Musk’s Terafab project. New AI Customers: ByteDance is in advanced talks to buy custom data-center chips from MediaTek, which would add a major customer for the Taiwanese chipmaker as Chinese firms seek alternatives to Nvidia. Market Risks: A global tech sell-off hit Taiwan shares despite TSMC’s strong results, as inflation, borrowing costs and questions about AI spending unsettled investors. Growth and Energy: The IMF more than doubled its 2026 Taiwan growth forecast to 10.7%, citing AI-driven exports. Taiwan also says it plans to invest up to US$4.4 billion in Alaska LNG and buy a share of the project’s output, though terms remain under negotiation. Industry Links: Taiwan and Poland launched cooperation on gallium nitride chips, while Northland completed installation of all 73 turbines at the Hai Long offshore wind project.

Semiconductors: TSMC posted a sixth straight record quarter, with third-quarter net profit up 69% to NT$763.1 billion as AI demand lifted chip and advanced-packaging sales. Market Pressure: The AI trade took a hit as hotter U.S. inflation rattled investors: Taiwan shares fell as much as 3.8%, while chip stocks slid across Asia amid rate and funding concerns. Micron Labor: President Lai urged Micron and its Taiwan union to negotiate in good faith ahead of a possible strike; the company opened a new advanced assembly and testing facility in Taichung. Energy and AI: Taiwan’s CPC plans to invest up to US$4.4 billion in Alaska LNG, while the proposed purchase of 30% of output remains part of a developing deal. As AI expands, Taiwan is also weighing rising costs and demand for green power. Chip Design: ByteDance is reportedly in talks to buy custom data-center chips from Taiwan’s MediaTek, potentially extending its role in AI hardware.