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Chinese Military Casts Shadow as Global Execs Flock to Taiwan Tech Show
At sea, a hostile exchange with China was brewing as AI giants including Nvidia (NVDA.O) Intel (INTC.O) and SK Group last week championed Taiwan’s importance as a key cog in the global supply chain.
Taiwan’s coast guard clashed with Chinese colleagues in the disputed South China Sea on Friday, the final day of the high-profile Computex conference in Taipei.“The Taiwan Strait is vital to the global economy’s stability and the lifeline of the world’s technology industry,” Taiwan’s coast guard said in a warning to a Chinese warship near the Taiwan-controlled Pratas Islands.
Taiwan is home to TSMC (2330.TW) the world’s biggest contract chipmaker and supplier to Nvidia and Apple (AAPL.O) and Foxconn (2317.TW) Nvidia’s biggest server maker, and dozens of other firms working throughout the AI hardware stack.
The island is run democratically and China claims it as its territory . In recent years , and especially in the past month , China has increased military pressure to assert those sovereignty claims .
Taiwan’s military ministry reported 79 Chinese aeroplanes operating near the island during the June 2-5 Computex event, a harsh reminder about the risk to the global AI supply chain should Beijing ever make good on threats to conquer Taiwan by force.
Wednesday’s “joint combat readiness patrol” wasn’t the first in recent days by China’s military around Taiwan.
China’s defence ministry did not reply to a request for comment on its activities last week.
Billions of dollars are being invested in Taiwan to build the hardware needed to fuel the AI revolution, but there is a possible sting in the tail, said David Feith, senior scholar at U.S. think tank the Hudson Institute and a former U.S. Deputy Assistant Secretary of State.“There is a huge security threat, and it’s coming out of Beijing,” he told Reuters on Saturday at a seminar in Taipei hosted by DEST, a think tank sponsored by Taiwan’s National Science and Technology Council.I do think that markets internationally and governments I worry are underestimating the possibility of a crisis.
JENSEN HUANG GLOW UP
Last month, Nvidia CEO Jensen Huang said the company plans to spend about $150 billion annually in Taiwan, up from roughly $10 billion to $15 billion five years ago. AMD CEO Lisa Su, who was not in Taiwan for Computex but visited shortly before, has announced investment of more than $10 billion in Taiwan’s AI industry.
Huang sidestepped a question on security at his news conference Tuesday, saying the supply chain should be as “diversified and as redundant” as possible so there may be resilience, and pointed to Taiwan tech firms expanding in the U.S. “That doesn’t change the fact that Taiwan is really good at manufacturing, especially technology manufacturing,” he continued. “This is the hot spot of the ecosystem,”
TAIWAN’S ‘RESPONSIBLE OBLIGATION
Taiwan President Lai Ching-te was blunter, addressing at the Computex inauguration.The government will firmly uphold peace and stability across the Taiwan Strait and is dedicated to maintaining the status quo,” he said.“This is a bold national policy and the most responsible commitment made by Taiwan to the global technology supply chain.”
There’s also a tiny military side to Computex with many drone businesses participating.
Drones are a major part of Lai’s military modernising strategy.
U.S. drone maker Anduril Industries, whose inventor Palmer Luckey toured the expo on Thursday, is jointly developing a missile with Taiwan and told the official Central News Agency there are now some 30 Taiwanese companies in his firm’s supply chains.“There are things in this world that only exist because Taiwan is the leader in technology, and that’s not something that I want to disappear,” he remarked.
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IHC forms larger bench to hear plea against PTI’s Sept 27 protest
The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.
The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.
Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.
PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission
The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.
The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.
During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.
The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.
The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.
The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.
Latest News
Iran says it caught US underwater drone in Strait of Hormuz
Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being used in military operations.
Iranian state media reported the craft was a Dive-LD, a large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said in a statement broadcast by Iranian state media.
In response, a Pentagon spokesperson revealed a underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. The defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.
Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it is built from the outset to operate in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.
The U.S. Navy is spending extensively in unmanned naval systems, including undersea and surface vehicles, as it seeks cheaper ways to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.
According to Anduril’s website, Dive-LD can operate for up to 10 days without returning to base and is meant to dive to depths of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop reported in 2024.
Business
Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big
The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.
Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.
Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.
The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.
The euro held constant at $1.1631 while the pound was last bought at $1.3546. The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.
OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.
The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.
The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.
The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.
Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”
The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.
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