Taiwan’s AI-led growth outlook: Taiwan has raised its 2026 GDP growth forecast to a 16-year high, with demand for AI, high-performance computing and cloud infrastructure driving the upgrade, while the central bank says it will take “timely” steps to protect financial stability amid tariff uncertainty, weaker China growth and geopolitical risks. Computex AI infrastructure spotlight: Ahead of Computex (June 2-5), Nvidia CEO Jensen Huang is set to headline and has pledged up to US$150 billion a year in Taiwan, as AMD also signals major AI investment, underscoring Taiwan’s shift from chipmaking to building the full AI data-centre stack. Foxconn cash returns and AI capex: Hon Hai shareholders approved a record NT$7.2 cash dividend per share, while chairman Young Liu pointed to surging AI server demand and a 30% jump in 2026 capex to expand AI manufacturing capacity. Defence procurement and arms-sales uncertainty: Taiwan is preparing for a bigger defence budget and is also weighing how direct commercial sales could help clear a US$20 billion weapons backlog as US arms approvals remain politically sensitive. Markets and energy backdrop: Asian stocks climbed on hopes for a US-Iran ceasefire extension, while oil prices eased—an important macro tailwind for Taiwan’s tech-heavy economy and energy costs. Cross-strait and regional risk: China reiterated objections to Japan-Philippines maritime talks near Taiwan and China’s defence posture remains a key concern for regional business planning. Corporate governance watch: The Ma Ying-jeou Foundation filed criminal complaints over alleged embezzlement, adding another domestic headline for Taiwan’s institutional landscape.