Stories from Taiwan

The New Taiwan Dollar (TWD) appreciated by 1.08 jiao to a rate of 30.408 against the USD due to hot money inflows.

TSMC is expected to invest over $100 billion to relocate operations to the United States. Efforts will focus on increasing production scales and maturing technology to expand into international markets. The government aims to establish Taiwan as an Asia-Pacific center for the drone democracy supply chain. This initiative follows rising global demand for flight supply chains. New Taiwan High Speed Rail trains are also expected to enter service in the second half of 2027. The report was filed by journalist Chang Po-tsung in Taipei. This initiative includes leveraging domestic demand to drive industry growth. Reporter Chang Po-tsung reported from Taipei. This effort includes integrating policy and industrial resources to enhance overall competitiveness.

TSMC employees in Taiwan receive annual compensation through a combination of monthly salaries and bonuses. Last year, average employee bonuses reached approximately 2 million TWD per person. When including monthly salaries, total annual compensation for employees is estimated to be around 4 million TWD. This high compensation level is noted within the industrial park areas. This high earning potential is contributing to a sense of relative deprivation among workers in other sectors. The discussion noted that stock performance and vendor code changes significantly impact company value and investor interest. Intel and Tesla are also mentioned as active players in the industry landscape.

Taiwanese regulators have increased the single-stock ownership limit for institutional investors from 10% to 25%. This policy change aims to address previous restrictions that prevented large-scale investment in major companies. The relaxation follows a period where high concentration in stocks like TSMC led investors toward passive ETFs. The move has contributed to recent market gains in major holdings. Investors previously used passive ETFs to bypass these ownership limits. The new rule allows for more direct acquisition of individual stocks. The previous regulation was intended to prevent excessive concentration of power and protect minority shareholders. Under the new rules, investors can hold larger stakes in individual companies.

TSMC shares rose by 140 TWD following a previous increase of over 100 TWD on Friday. TSMC stock prices increased by 140 units following recent market movements. The Taiwan Weighted Index rose by 1,048.394 points, representing a 2.59% increase. The weighted index in Taipei rose 612 points to reach 41,382, representing a 1.48% increase.

A political commentator expressed optimism regarding the cooperation mechanism between the Blue and White political factions in Taiwan. Political figures in Taiwan are focusing on the 2026 elections as a critical performance indicator for future viability in 2028. Kaohsiung and southern regions are cited as areas where public opinion is being monitored. Mayor Lu Shiow-yen is reportedly increasing her presence across Taiwan to demonstrate leadership ahead of the vote. Success in 2026 is viewed as a key KPI for political longevity. Mayor Lu Shi-ying has begun traveling across the country to demonstrate leadership ahead of these upcoming elections. The Kuomintang (KMT) aims to stabilize its seat count in the upcoming year-end elections. The party believes its current political direction is correct based on a 60 percent public opinion foundation from the 2024 elections.

The Blue and White political camps in Taiwan are exploring cooperation for upcoming local elections. Recent polling data shows a tight race between Kuomintang candidate Li Si-wan and Democratic Progressive Party candidate Su Chiao-hui. Both candidates are currently in a dead heat, presenting a tug-of-war dynamic in the local elections. Political teams are expected to engage in coordination and exchange opinions to find a resolution. The outcome will depend on the internal coordination mechanisms between the various political blocs. President Lai Ching-te's attempts to control the selection process have resulted in delays and complications in finalizing local candidates. The Democratic Progressive Party is experiencing difficulties in nominating candidates for various electoral districts under President Lai Ching-te.

Three former Kuomintang county magistrate candidates have expressed intentions to run for legislative seats.

Defense expert Shih Hsiao-wei criticized the current legislative procurement process for lacking sufficient evaluation of supply chain risks and actual combat effectiveness. The expert said that procurement should focus on reducing war risks and ensuring the survival of frontline troops rather than serving as political symbols. He noted that military purchases should not be treated as mere political symbols. Taiwanese media reports suggest the United States is seeking a $40 billion defense procurement package. Over 60% of Taiwanese citizens now report they believe the US is unreliable and will not assist in Taiwan's defense. The Democratic Progressive Party (DPP) faces criticism from scholars regarding its approach to constitutional law and legislative reporting. Critics allege the ruling party's actions constitute a disregard for the Constitution of the Republic of China.

Former Japanese Deputy Defense Minister Taizo Nakayama stated that Japan, the United States, and Taiwan must stand together to strengthen defense capabilities. Nakayama said that the goal of increasing defense strength is to deter China rather than to initiate war. He described the necessity of this cooperation to prevent conflict in the region. The remarks address the evolving security dynamics between Japan, the US, and Taiwan.