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Taiwan’s Chip Industry a Pillar of Global Stability and National Defence, Tsai Ing-wen Says

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Former Taiwan President Tsai Ing-wen told the Berlin Freedom Conference on Monday that Taiwan’s world-leading semiconductor industry not only underpins global prosperity but also strengthens the island’s defence and resilience amid growing external threats.

“Our high-tech sector, particularly in semiconductors, has become an indispensable part of the global economy,” Tsai said. “In an age where AI also defines power, Taiwan’s chip industry anchors global prosperity.”

Tsai emphasized that Taiwan’s role as a global technology hub has become a strategic asset for both economic and national security, reinforcing its position in the global supply chain while deterring potential aggression.

“Now, it is such an initiative that helps Taiwan strengthen its defence and societal resilience in the face of threats,” she added, stressing that Taiwan remains committed to sharing its expertise with international partners.

While Taiwan maintains official diplomatic ties with only the Vatican in Europe, Tsai noted growing engagement with European countries such as Britain, France, Lithuania, and Poland, which have continued to host Taiwanese officials despite Beijing’s objections.

Her remarks come as the island’s semiconductor industry — led by TSMC, the world’s largest contract chipmaker — continues to play a central role in global AI and advanced computing technologies, making Taiwan a critical player in the modern digital economy.

Taiwan warns of surge in Chinese cyberattacks and “online troll army”

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Taiwan’s National Security Bureau (NSB) has reported a 17% rise in Chinese cyberattacks targeting its government systems so far in 2025, amounting to an average of 2.8 million attacks per day. The agency warned that Beijing is deploying an “online troll army” to amplify disinformation and undermine public trust in the island’s institutions.

The NSB report, presented to parliament, described these as systemic cyberattacks focusing on key sectors such as defence, telecommunications, energy, and healthcare. Beyond espionage, the operations reportedly use the dark web, internet forums, and social media to spread fabricated content and erode public confidence in Taiwan’s cybersecurity capabilities.

Taiwan’s authorities accuse China of using “grey-zone” tactics — hybrid measures that combine military drills, cyber intrusions, and propaganda — to pressure the island into accepting Beijing’s sovereignty claims. China’s Taiwan Affairs Office declined to comment, though Beijing has repeatedly denied involvement in hacking and instead claims it is a victim of Taiwanese cyber operations.

The report also flagged more than 10,000 suspicious social media accounts, mostly on Facebook, that collectively spread over 1.5 million pieces of disinformation. These campaigns reportedly promote pro-China narratives, attack Taiwan’s leadership, and attempt to sow distrust toward the United States, Taipei’s key ally and arms supplier.

According to the NSB, AI-generated memes and targeted digital propaganda have become central tools in China’s information warfare strategy ahead of Taiwan’s elections and trade talks with Washington.

TSMC Q3 revenue jumps 30% on AI-fueled chip demand, beats forecasts

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TSMC, the world’s largest contract chipmaker, posted a 30% year-on-year surge in third-quarter revenue, driven by the global boom in artificial intelligence demand. The company’s performance outpaced analyst expectations, reaffirming its dominance in the semiconductor supply chain that powers AI leaders like Nvidia and Apple.

Revenue for the July–September period reached T$989.92 billion ($32.47 billion), surpassing the T$973.26 billion consensus estimate from 22 analysts compiled by LSEG SmartEstimate. The figure landed in the midpoint of TSMC’s July guidance of $31.8 billion–$33 billion, according to its previous earnings call.

The strong result underscores how AI-related chip demand is offsetting slower sales of consumer electronics such as smartphones and tablets. TSMC’s cutting-edge chips are essential for powering advanced AI systems and high-performance computing, both of which have fueled a new growth cycle for the company.

TSMC’s Taipei-listed shares have climbed 34% year-to-date, outpacing the broader Taiwan index’s 18.5% gain. Analysts expect the company’s October 16 earnings report to include a revised full-year outlook, likely reflecting continued AI-driven momentum.

The upbeat results mirror a wider surge across Taiwan’s tech sector: Foxconn, Nvidia’s largest server manufacturer, also posted record-high third-quarter revenue, signaling sustained strength in the AI hardware supply chain.