Semiconductor Rally on AI Demand: Intel, AMD and Taiwan Semiconductor surged after AI-chip sentiment snapped back, with investors pointing to strong cloud spending signals and renewed risk-on appetite. AI Data Center Supply Chain: Zhongji InnoLight’s Hong Kong debut saw an early drop before stabilizing, as the optical-transceiver maker faces US DoD blacklist scrutiny tied to alleged military links. TSMC/Intel Packaging Race: A report says TSMC is developing an “EMIB-like” advanced packaging approach, underscoring how packaging bottlenecks are becoming as critical as chipmaking for AI deployments. Taiwan Infrastructure & Mobility: THSR officially unveiled new N700ST Shinkansen trainsets from Hitachi and Toshiba, aiming to add capacity and improve accessibility as the first unit heads toward Taiwan’s tracks. Trade Policy & Compliance: Taiwan set up a cross-agency mechanism to block imports linked to forced labor, aligning with its Taiwan-U.S. trade commitments. Energy/Water Stress Watch: The proposed Pax Silica semiconductor-AI hub in the Philippines highlights how massive power and water needs can strain regional grids and aquifers—an issue Taiwan firms will watch as AI expansion accelerates. Defense Industry Pressure: US officials are pushing defense tech firms to help rapidly replenish weapons stockpiles amid missile and interceptor drawdowns. Business Moves: K-Test is investing US$50m in Malaysia to expand semiconductor testing capacity, including services for customers across Taiwan and South Korea. Markets: Taiwan’s Taiex slipped below 40,000 amid AI capex concerns and weak momentum. Other Taiwan-linked items: Taiwan’s MOI plans to petition to dissolve a pro-China party, while TVBS and NHK partnered on live coverage of the Sagrada Família inauguration.