ISSUE 248                                                                                     June 13, 2024
Taiwan Weekly
Reliable report and analysis of the most important issues in Taiwan
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New AI Era Highlights Taiwan's Importance
taiwanweekly2019@gmail.com
According to a commentator, the Taiwan Semiconductor Manufacturing Company's (TSMC) technology and production capacity remains unparalleled globally. For this reason, executives of the three major semiconductor giants are unafraid of visiting Taiwan despite geo-political risks. 
(Photo from: United Daily News)
Featured News

Key Reasons NVIDIA, AMD, and Intel Are Competing for TSMC

United Daily News, June 5, 2024

 

Global Tech Industry Converges on Taiwan for Major June 4 Events

 

On June 4, the global tech industry spotlight focused on Taiwan, marking two significant events: the annual Taipei International Computer Show and the Taiwan Semiconductor Manufacturing Company’s (TSMC) shareholders meeting. These events are deeply interconnected. NVIDIA founder Jensen Huang, who has become known as the "Godfather of AI," Advanced Micro Devices (AMD) CEO Lisa Su, and Intel CEO Pat Gelsinger all emphasized their reliance on and close ties with TSMC.

Featured Editorial
taiwanweekly2019@gmail.com
According to media commentary, while the artificial intelligence (AI) wave highlights the importance of Taiwan's semiconductor industry, both the United States and mainland China consider Taiwan's economy equally significant. Traditional manufacturing, which creates the most job opportunities, should not be neglected.
(Photo from: China Times)

Taiwan's Choices Under Impact of ECFA and AI

China Times Editorial, June 5, 2024

 

Two major events that are impactful on Taiwan’s economy occurred recently: First, mainland China canceled 134 preferential tariff items on the early harvest list of the cross-strait Economic Cooperation Framework Agreement (ECFA), impacting Taiwan's traditional manufacturing industries and leading to falling stock prices of related companies. The other event is NVIDIA CEO Jensen Huang’s Taiwan visit that set off a wave of artificial intelligence (AI) and the "love Taiwan" trend. Taiwan stocks rose 362.54 points, or 1.71 percent the same day as Huang’s speech at the National Taiwan University on June 2. And financial media personality Hsieh Ching-ho said that "Taiwan will be fine without ECFA ". 

read more

From: https://www.chinatimes.com/opinion/20240605004537-262101 

Featured Opinion
taiwanweekly2019@gmail.com
According to media commentary, the Executive Yuan has moved for the legislative reform bills to be reconsidered. However, they include content proposed by the Democratic Progressive Party (DPP) in previous years. The situation highlights how power corrupts, and absolute power corrupts absolutely.
(Photo from: The Storm Media)

Executive Yuan's Reasons for Delaying Legislative Reform Unjustified

By Hsia Jen 

The Storm Media, June 7, 2024  

 

The Executive Yuan has decided to request a reconsideration of the Legislative Yuan’s third reading passage of the “Law Governing the Legislative Yuan’s Power” and the “Criminal Code” amendments related to legislative reform. The Executive Yuan emphasizes that the reconsideration is not a major threat or a constitutional crisis, but rather a “normal” process and should be viewed as “constructive constitutional interaction.” It is not intended to provoke conflict, as the Executive Yuan is calm, knowing that it is not the Executive Yuan’s ministers under fire, but the ruling and opposition legislators. 

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From: https://www.storm.mg/article/5149744 

This Week in Taiwan
taiwanweekly2019@gmail.com
Minister of Economic Affairs Kuo Chih-hui stated that he does not rule out nuclear power. As long as extension legislation is passed and safety inspections are completed, the second and third nuclear power plants may extend operations by 20 to 30 years.
(Photo from: United Daily News)

June 5: NVIDIA announced that the company will increase its investment in Taiwan. CEO Jensen Huang mentioned that the AI supercomputer center might be located in Kaohsiung, while the research center could be near Taipei. The headquarters location is still undecided. Minister Wu Cheng-wen of the National Science and Technology Council (NSTC) confirmed that the NSTC has been in contact with NVIDIA, and there is a possibility of donating some computing power to the academic community.

 

June 5: Recently, ruling and opposition party legislators have proposed abolishing the Examination Yuan and Control Yuan. In response to these calls, President Chen Chu of the Control Yuan expressed her support. Chen emphasized that her commitment to the separation of powers among three branches of government remains unchanged, and she fully supports and respects the Legislative Yuan if it proceeds with constitutional amendments to abolish the Control Yuan.

 

June 5: During an interpellation at the Legislative Yuan, Minister of Economic Affairs Kuo Chih-hui stated that he does not rule out nuclear power as an option. If legislation for extending the operating licenses is passed, and safety inspections are completed, both the second and third nuclear power plants could operate for an additional 20 to 30 years. This marks the first time that Minister Kuo mentioned the possibility of extending the operations of the second nuclear plant. Regarding calls from companies located in the Hsinchu Science Park to allow the construction of small modular reactors (SMRs), Kuo clarified that the consideration would depend on safe disposal methods for nuclear waste.

 

However, the Executive Yuan later reaffirmed its commitment to a "nuclear-free homeland," and Kuo adjusted his stance accordingly.

 

June 5: The Taiwan Power Company (Taipower) has been operating at a loss, and the government has provided subsidies and capital injections over the years to prevent its collapse. Minister of Economic Affairs Kuo Chih-hui stated that he does not support such subsidy methods. Taipower should accurately reflect the cost of electricity. Kuo also indicated that he is considering feedback from large electricity consumers when deciding whether to implement a second price hike within the year.

 

June 6: The Ministry of Foreign Affairs announced that it has received official notification from the United States regarding the sale of approximately $300 million worth of F-16 aircraft spare parts to Taiwan. This marks the 14th time that the Biden administration has announced arms sales to Taiwan since taking office.

 

June 6: The Executive Yuan formally requested reconsideration of parliamentary reform amendments passed in the third reading by the Legislative Yuan, sparking intense reactions from both the ruling and opposition parties. The opposition Kuomintang (KMT) and Taiwan People's Party (TPP) criticized the Executive Yuan for declaring "war" on the Legislative Yuan and questioned whether Premier Cho Jung-tai would take political responsibility and step down if the reconsideration fails. Premier Cho responded that "resignation is not an option" and asked whether the opposition parties would give up their motion of no confidence. Concerns have arisen that the process of reconsideration may become routine over the next four years.

 

June 7: The global battle for the fourth-generation high-bandwidth memory (HBM4) market has begun among the three major memory manufacturers: SK Hynix, Micron, and Samsung Electronics. South Korea's SK Group issued a press release that Chairman Chey Tae-won met with TSMC Chairman C. C. Wei June 6, confirming that the two companies will collaborate in the AI chip field.

 

June 8: Mainland China's General Administration of Customs released data showing a significant increase in cross-strait trade in May. The mainland imported $17.7 billion from Taiwan, a year-on-year growth of 17.5 percent, and exported $6.55 billion to Taiwan, with a growth rate of 25.5 percent compared to last year.

 

The total trade volume between the two sides from January to May reached $109.2 billion, an increase of 8.2 percent, with Taiwan enjoying a trade surplus of $50.6 billion.

Taiwan Weekly is a newsletter released every week by Fair Winds Foundation and Association of Foreign Relations which provides coverage and perspectives on the latest developments in Taiwan.

The conclusions and recommendations of any Taiwan Weekly article are solely those of its author(s) and do not reflect the views of the institutions that publish the newsletter.

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