Taiwan is eyeing an ambitious arms procurement strategy, with officials reportedly discussing a possible US$15 billion deal with the incoming U.S. administration, as reported by Financial Times on November 11. Although its government has clarified there are no immediate negotiations with the U.S. for new arms deals, the package could include high-profile military assets aimed at bolstering Taiwan’s deterrence capabilities amid increasing Chinese military activity.

Taiwan continues to lead in the global semiconductor industry, with its IC design sector ranked second globally and its foundry and outsourced semiconductor assembly and testing (OSAT) services ranked first, as noted by the Market Intelligence & Consulting Institute (MIC) in Taipei. MIC projects that the shipment value of Taiwan’s semiconductor industry will reach NT$4.76 trillion (US$ 149.2 billion; US$1=NT$31.9) this year, marking a 21.3% increase compared to 2023.

Meanwhile, South Korea recently proposed a "special chip law" to support its chipmakers in the face of rising geopolitical risks and increasing competition, according to a Reuters report on November 12. The legislation aims to provide subsidies to chipmakers and remove the national 52-hour workweek cap for specific R&D staff, addressing potential challenges from incoming U.S. President Donald Trump’s policies. Trump's proposals, which include tariffs and restricted AI chip sales to China, are expected to intensify the global chip competition. This proposal comes as South Korea raised concerns over potential Chinese pricing strategies that could undercut South Korean firms abroad. However, the bill faces challenges in the National Assembly, where the liberal opposition holds a majority.