Weekly Roundup: MediaTek and Nvidia Unveil AI Supercomputer, Taiwan Faces Constitutional Crisis, Foxconn Halts Chinese Worker Deployment to India
Tech Spotlight
TSMC begins 4-nanometer chip production in Arizona, marking a U.S. first. Backed by a $6.6B Commerce grant, TSMC plans $65B investment by 2030, adding a third fab and 2-nanometer chip production by 2028, supporting U.S. semiconductor goals. Reuters
Nvidia unveiled AI-powered Cosmos models for cost-effective robot and car training, RTX 50 gaming chips for enhanced realism, and a $3,000 desktop for AI developers at CES 2025. It also announced a Toyota partnership and projected $5B automotive revenue by 2026, with its valuation reaching $3.66T. CNA
MediaTek partnered with Nvidia to develop the AI supercomputer Project Digits, unveiled at CES 2025. Powered by Nvidia’s GB10 Grace Blackwell superchip, it enables scalable AI model fine-tuning and will launch in May for $3,000. Taiwan News
Politics
Taiwan’s Constitutional Crisis Threatens Its Democracy as opposition-led reforms paralyze the Constitutional Court by imposing stricter quorum rules. With only eight active justices, the court cannot function, undermining checks and balances and threatening democratic governance. The Diplomat
Taiwan's opposition lawmakers back an "unconstitutional" Bill raising thresholds for the Constitutional Court, which critics warn could paralyze the court and restrict justice access. Despite protests and warnings from President Lai's cabinet, the Bill passed, intensifying Taiwan's constitutional crisis. CNA
The CDC reported three new measles cases in a central Taiwan hospital cluster, bringing the total to 19. The outbreak remains confined to hospital contacts, with no signs of wider spread, as most patients were vaccinated, reducing transmission risk. Focus Taiwan
Seven retired Taiwanese military officers, led by Chu Hung-i, were charged with spying for China, violating the National Security and Anti-Infiltration Acts. They allegedly received funds from PLA intelligence to recruit personnel, gather military information, and establish a pro-China political party. Taiwan News
Finance Focus
Foxconn halts deploying Chinese workers to its Indian iPhone factories and faces delays in equipment shipments from China, potentially disrupting production. The move highlights geopolitical tensions as Apple diversifies away from China, shifting manufacturing to India under its "Make in India" initiative. Rest of World
TSMC reported Q4 2024 revenue of T$868.42 billion ($26.36 billion), beating market forecasts by 34.4% year-on-year, driven by strong AI demand. December revenue surged 57.8%, positioning TSMC as a key beneficiary of the AI boom alongside other Taiwan tech firms like Foxconn. Reuters
Vanguard International Chair Fang Leuh predicts moderate chip industry growth in 2025 despite global uncertainties, including U.S.-China trade tensions. Fang highlighted VIS's $7.8 billion Singapore fab with NXP, set for 2027 production, and noted global chip sales grew 20.7% year-on-year in November. Taiwan News
Global Focus
Taiwan, known as "Silicon Island," is vital to U.S. economic security due to its dominance in global semiconductor supply chains and advanced technology production. Supporting Taiwan’s capabilities, integrating its expertise into the U.S. tech ecosystem, and fostering its global investments are essential for mitigating vulnerabilities and ensuring shared growth. CSIS
Taiwan must secure its undersea cables, critical for its tech industry and global connectivity, amid rising Chinese aggression and gray-zone tactics. Upgrading cables to "critical infrastructure" and investing in repair ships are essential steps to safeguard its economy and maintain leadership in global tech. The Diplomat
Taiwan expects minimal impact on its chip exports from Trump’s proposed tariffs due to its technological edge, Economy Minister Kuo Jyh-huei said. Taiwan plans to assist firms in relocating supply chains to the U.S. and expand cooperation with Japan on AI and drones. Reuters
Taiwan in Numbers
Taiwan's December exports rose 9.2% year-on-year to $43.59 billion, driven by strong AI semiconductor demand and U.S. orders, exceeding the forecasted 6.5% growth. The finance ministry predicts stable growth in Q1 despite geopolitical uncertainties and the Lunar New Year holiday's potential impact. Reuters
Taiwan's CPI rose 2.1% in December, driven by a 4.05% increase in food prices due to heavy rainfall, with dining and rent costs also climbing. The DGBAS expects inflation to ease as food prices stabilize, though core CPI grew 1.65%, signaling persistent pressure in key sectors like health and shelter. Taipei Times
Taiwan's land deals surged 116% to NT$277.6 billion in 2024, driven by developers building land stock amid a housing boom, with Taichung leading at NT$58.3 billion. CBRE predicts a slowdown in 2025 as the central bank tightens real estate lending. Taipei TImes
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