Formosan Association for Public Affairs

Formosan Association for Public Affairs FAPA is a Washington, D.C.-based nonprofit organization that seeks to build worldwide support for Taiwan. Promote peace and security for Taiwan; and

5.

Established in 1982 in Los Angeles, the Formosan Association for Public Affairs (FAPA) is a world-wide, Washington headquartered, non-profit organization that aims to:

1. Promote international support for the right of the people of Taiwan to establish an independent and democratic country and join the international community;

2. Promote relations and cooperation between Taiwan and the United Sta

tes;

3. Protect the right of self-determination for the people of Taiwan;

4. Advance the rights and interests of Taiwanese communities throughout the world.

U.S. Congressional Taiwan Caucus Co-Chairs Urge Lithuania to Stand Firm with Taiwan Amid PRC CoercionㅤOn August 10, 2026...
08/25/2026

U.S. Congressional Taiwan Caucus Co-Chairs Urge Lithuania to Stand Firm with Taiwan Amid PRC Coercion

On August 10, 2026, the four co-chairs of the U.S. Congressional Taiwan Caucus –– Representatives Mario Diaz-Balart (R-FL), Ami Bera (D-CA), Andy Barr (R-KY), and Greg Stanton (D-AZ) –– sent a joint letter to Lithuania’s top leaders, urging the country to maintain its substantive relationship with democratic Taiwan amid the People’s Republic of China’s (PRC) “bullying and coercion.”

The Lithuanian Ministry of Foreign Affairs responded by reaffirming Taiwan as an “important regional partner” and stating that Lithuania would continue to pursue mutually beneficial cooperation with Taiwan. Prime Minister Mindaugas Sinkevičius also thanked the U.S. lawmakers. Speaker of the Seimas (Lithuanian Parliament) Juozas Olekas, however, noted that Lithuania’s support for Taiwan “remains strong,” while stressing that this would not alter Vilnius’s efforts to normalize relations with Beijing.

Lithuania’s Experience Facing PRC Coercion

The bipartisan appeal from the Congressional Taiwan Caucus co-chairs underscores growing concern over the PRC’s bullying and coercion against countries that seek to deepen ties with Taiwan.

Lithuania became a prime target of Beijing’s economic coercion after allowing the “Taiwanese Representative Office in Lithuania” to open in 2021. In retaliation, Beijing downgraded diplomatic ties and imposed a de facto trade embargo, targeting Lithuanian exports and disrupting European Union supply chains.

Lithuania has sought to maintain cooperation with Taiwan while also working to repair relations with China. In February 2026, then-Lithuanian Prime Minister Inga Ruginienė described the 2021 decision to open the representative office in Vilnius under the name “Taiwanese” as a “mistake,” noting that Vilnius had begun taking “small first steps” toward restoring ties with Beijing.

Talks on a new economic cooperation action plan with Taiwan were temporarily paused in June 2026 amid Lithuania’s political transition. Nonetheless, Vilnius resumed negotiations in July after the new government under Prime Minister Mindaugas Sinkevičius took office.

U.S. Congress Seeks to Counter PRC Coercion Against Taiwan’s Partners

Lithuania’s experience illustrates the broader challenge facing countries that deepen official or unofficial ties with Taiwan, as Beijing can impose economic costs to pressure governments into policy reversals.

To address this challenge, U.S. lawmakers have pursued bipartisan legislation specifically designed to help Taiwan’s partners withstand PRC pressure. The Taiwan Allies Fund Act was introduced in the Senate in March 2025 (S.1216) and in the House in April 2025 (H.R.2559). The Senate Foreign Relations Committee advanced S.1216 in January 2026, and the bill was reported with an amendment in February.

The House version would authorize $120 million over three years from fiscal years 2026 through 2028, while the amended Senate version would authorize $30 million over the same period, under the Countering PRC Influence Fund (CPIF). This assistance would support countries facing PRC coercion for maintaining or strengthening ties with Taiwan.

Implications

As Lithuania and other European countries such as Czechia remain key U.S. partners on Europe’s strategic frontline, Beijing’s efforts to capitalize on shifting domestic political dynamics to weaken their ties with Taiwan warrant close attention.

For Taiwan, sustaining robust ties with democratic partners helps reinforce its sovereignty and expand its international space. Lithuania’s experience also underscores the value of pairing diplomatic support with practical economic security measures to mitigate the economic costs of resisting PRC coercion and strengthen democratic resilience.

Sources:

[1] Office of Rep. Mario Diaz-Balart
https://mariodiazbalart.house.gov/media-center/press-releases/congressional-taiwan-caucus-co-chairs-urge-lithuanian-leaders-continue

[2] Taipei Times
https://www.taipeitimes.com/News/taiwan/archives/2026/08/13/2003862444

[3] Asia Society Policy Institute
https://asiasociety.org/policy-institute/resilience-resolve-lessons-lithuanias-experience-chinese-economic-coercion

[4] Taipei Times
https://www.taipeitimes.com/News/taiwan/archives/2026/02/07/2003851936

[5] Focus Taiwan
https://focustaiwan.tw/politics/202607280007

[6] S.1216 / H.R.2559 (Taiwan Allies Fund Act)
https://www.congress.gov/bill/119th-congress/senate-bill/1216
https://www.congress.gov/bill/119th-congress/house-bill/2559

Photos: Office of Rep. Mario Diaz-Balart; Wikimedia Commons

China Exploits Claimed “Joint Drills” to Normalize its Naval Presence Near Taiwan and Challenge U.S. Regional Influenceㅤ...
08/17/2026

China Exploits Claimed “Joint Drills” to Normalize its Naval Presence Near Taiwan and Challenge U.S. Regional Influence

On August 12, China’s military claimed that its naval vessel Honghe and the Indonesian Navy frigate KRI I Gusti Ngurah Rai-332 carried out joint drills in the waters east of Taiwan, including maritime communications, formation maneuvering, and replenishment at sea.

While Beijing framed the encounter as demonstrating the two sides’ willingness to cooperate pragmatically and jointly safeguard regional peace, the Indonesian Navy clarified that the interaction was a routine, non-combat “passing exercise” (PASSEX) unrelated to “war fighting.”

Taiwan’s Mainland Affairs Council (MAC) strongly condemned the move as Beijing’s “political manipulation” and a “military provocation” aimed at creating a false impression that China has jurisdiction over the waters east of Taiwan.

Beijing’s Strategic Calculus

John Dotson, director of the Global Taiwan Institute (GTI), noted that while limited in scale, the claimed joint drills carry symbolic significance by advancing China’s objectives to cultivate regional partners and expand its naval presence in waters east of Taiwan. He also said Beijing was pushing back against the growing Japan-Philippines “quasi-alliance,” driven by concerns over China’s increasingly assertive behavior and the potential for a Taiwan Strait military crisis.

China announced the claimed joint naval exercise while the U.S. Under Secretary of War for Policy Elbridge Colby and Indonesian Defense Minister Sjafrie Sjamsoeddin met in Jakarta on August 11. The officials discussed strengthening bilateral defense cooperation, including the implementation of the two countries’ Major Defense Cooperation Partnership (MDCP).

When asked about the claimed drill, a U.S. State Department spokesperson urged Beijing to “cease its continuous military pressure” against Taiwan, while calling on other countries not to amplify China’s “destabilizing narratives.”

Implications

By falsely framing a PASSEX as a joint naval exercise, China is attempting to exploit an interaction with a foreign navy to lend spurious legitimacy to its expanding naval presence in waters near Taiwan. This tactic also reflects Beijing’s broader effort to cultivate regional security partners and normalize its military activities around Taiwan.

Even as Indonesia clarified the non-combat nature of the interaction, the episode points to Beijing’s broader effort to expand its regional security influence and challenge U.S. strategic leadership in the Indo-Pacific.

Sources:
[1] Focus Taiwan
https://focustaiwan.tw/politics/202608130005

[2] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/08/13/2003862405

[3] Radio Republik Indonesia (RRI)
https://rri.co.id/en/international/2643764/minister-sjafrie-and-elbridge-colby-discuss-defense-cooperation-partnership

Photos: Taipei Times; CNA

Taiwan’s Legislature Preserves Full Drone Funding in 2026 Budget, Signaling Strong Self-Defense ResolveㅤOn August 14, Ta...
08/17/2026

Taiwan’s Legislature Preserves Full Drone Funding in 2026 Budget, Signaling Strong Self-Defense Resolve

On August 14, Taiwan’s Legislative Yuan passed the 2026 central government budget after a record 266-day delay, preserving the full NT$63.4 billion (about US$2 billion) in drone-related funding. The funding includes NT$44.2 billion for a six-year drone industry development program, alongside NT$19.2 billion in procurement funding across government agencies.

In a significant reversal, lawmakers from the opposition Kuomintang (KMT) and Taiwan People’s Party (TPP) ultimately backed the full funding package after earlier proposing steep cuts and later considering a freeze. A Democratic Progressive Party (DPP) spokesman emphasized that the budget should never have been targeted for cuts in the first place, as it was originally proposed by the Executive Yuan to support national defense capabilities and critical industrial upgrades.

Building Taiwan’s Drone Industry and Democratic Supply Chains

Taiwan’s Ministry of Economic Affairs (MOEA) issued a statement welcoming the vote, saying the funding will provide a stable foundation for R&D, mass production, testing and validation, and global market expansion.

According to the MOEA, the program is built around three core policy objectives: industrial development, defense self-reliance, and democratic supply chains. It aims to generate more than NT$40 billion in annual industry output and make Taiwan an Asia-Pacific hub for democratic drone supply chains by 2030.

The Legislature also adopted a resolution to stabilize annual funding while strengthening procurement oversight. It calls on the Executive Yuan to instruct the MOEA to:
• Distribute the NT$44.2 billion budget evenly over six years, with annual allocations capped at the six-year average;
• Authorize the use of inter-entity supply contracts for non-military drone purchases; and
• Require new drone-related programs to be incorporated into the broader interagency framework and approved by the Executive Yuan before implementation.

Strategic Implications

The vote followed months of domestic political deadlock amid sustained calls from Taiwan’s government and industry to advance critical defense and drone-related investments, as well as growing U.S. calls for Taiwan to invest more — and more effectively — in drones and other asymmetric capabilities. These calls have come from senior U.S. officials, bipartisan members of Congress, and the Director of the American Institute in Taiwan (AIT).

Preserving the full drone funding signals Taiwan’s unwavering resolve to enhance its self-defense capabilities, while bolstering its defense-industrial resilience and wartime sustainment capacity. It will also position Taiwan as a vital partner in trusted non-PRC drone supply chains and co-development efforts with the United States and other democratic partners.

Sources:

[1] Focus Taiwan
https://focustaiwan.tw/politics/202608140026

[2] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/08/15/2003862522

[3] Taiwan’s Ministry of Economic Affairs
https://www.moea.gov.tw/Mns/populace/news/News.aspx?kind=1&menu_id=40&news_id=123634

[4] Central News Agency (CNA)
https://www.cna.com.tw/news/aipl/202608140299.aspx

Photos: CNA

Mark your calendars! 🗓️✨We are thrilled to announce that FAPA’s 45th Anniversary Gala is happening in Taiwan! Join us fo...
08/14/2026

Mark your calendars! 🗓️✨

We are thrilled to announce that FAPA’s 45th Anniversary Gala is happening in Taiwan! Join us for an unforgettable evening as we honor generations of dedicated advocacy for a free, democratic, and secure Taiwan. 🫶

Stay tuned for more updates!

📍 Taipei Marriott Hotel, Taiwan
🗓️ February 14, 2027
⏰ 5:00 PM

Han Kuang Exercises Test U.S.-Style Command Practices and All-Out Defense MobilizationㅤThe live-fire portion of Taiwan’s...
08/10/2026

Han Kuang Exercises Test U.S.-Style Command Practices and All-Out Defense Mobilization

The live-fire portion of Taiwan’s annual Han Kuang military exercises is running from August 5 to 14. For the first time, the drills feature deliberate mobile internet slowdowns to simulate enemy attacks on communications networks. They are also examining how Taiwan would respond to mounting Chinese military pressure, amid concerns that Beijing is rehearsing blockade tactics aimed at severing Taiwan’s Pacific supply lines from its allies and partners.

The Han Kuang exercises have served as Taiwan’s primary war games since 1984 and are intended to test the nation’s combat readiness in the event of a possible Chinese invasion. This year’s drills are designed to be more realistic, unscripted, and decentralized, in response to past criticisms that earlier exercises were too highly staged.

2026 Han Kuang Priorities

• Decentralized Command and U.S.-Style Training
According to Taiwan’s Ministry of National Defense, this year’s exercises focus on decentralization and a transition toward unscripted, live-fire training. Following U.S. advice, the military has not shared the full exercise plans with its field officers to better gauge their real-time reactions to unexpected battlefield scenarios. Taiwan’s military is also incorporating key U.S.-style rehearsal methods, including backbriefs, to empower front-line troops to become active decision-makers during combat.

• Expanded Reserve and Civilian Mobilization
Taiwan’s military has called up more than 20,000 reservists, who are conducting a variety of training missions, including coastal defense. Separate exercises are also testing civilian vehicle requisitions to support wartime operations.

• Advanced Combat and Coastal Defense Capabilities
Taiwan’s newly deployed U.S.-made M1A2T Abrams tanks are participating in the Han Kuang exercises for the first time. The tanks are assigned to defend strategic locations in northern Taiwan, including beaches, critical infrastructure, and command centers, following the arrival in April of the final shipment of an order for 108 tanks. The exercises also feature the newly inaugurated Littoral Combat Command, established on July 1 to integrate the Taiwan Navy’s anti-ship missiles, coastal defense forces, mobile radar, and unmanned systems into a single unified command.

• Critical Infrastructure Resilience
Blockage drills are being staged at the recently opened Danjiang Bridge to simulate slowing an enemy advance toward Taipei’s central government district. Located in New Taipei, the bridge provides a key route into the capital, home to the Presidential Office and other major political and economic infrastructure sites. In another first for Taiwan, mobile network bandwidth is being deliberately reduced to simulate enemy attacks on communications infrastructure.

Implications

The 2026 Han Kuang exercises reflect a broader shift in Taiwan’s defense training toward more realistic and decentralized preparations for a potential Chinese invasion. By introducing U.S.-style command practices and putting both military and civilian systems through unscripted wartime scenarios, the exercises demonstrate Taiwan’s serious commitment to defense preparedness. They also reinforce a whole-of-society approach to resilience and deterrence.

The drills further underscore the important role that U.S. security assistance and defense cooperation continue to play in strengthening Taiwan’s self-defense capabilities and maintaining peace and stability in the Indo-Pacific.

Sources:

[1] Focus Taiwan
https://focustaiwan.tw/politics/202608020004

[2] Reuters
https://www.reuters.com/world/china/taiwan-launches-major-war-games-test-command-flexibility-2026-08-05/

[3] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/08/06/2003862018

[4] Focus Taiwan
https://focustaiwan.tw/society/202608100019

Photos: CNA

FAPA is pleased to announce our 2027 Emerging Leader Program - Taiwan Trek Join us for the info sessionInfo session I: A...
08/05/2026

FAPA is pleased to announce our 2027 Emerging Leader Program - Taiwan Trek

Join us for the info session
Info session I: Aug 19, 2026 7 PM EST
Info session II: Aug 26, 2026 7 PM EST

Sign up: https://forms.gle/epC2xPA9r4JLs3GV8

U.S. Senators Introduce Bipartisan Bill to Counter PRC’s Growing Gray-Zone AggressionㅤOn July 29, 2026, U.S. Senators Ta...
08/03/2026

U.S. Senators Introduce Bipartisan Bill to Counter PRC’s Growing Gray-Zone Aggression

On July 29, 2026, U.S. Senators Tammy Duckworth (D-IL) and Marsha Blackburn (R-TN) introduced the bipartisan “Countering Gray-Zone Aggression by the People’s Republic of China Act” (S.5160). The legislation aims to bolster U.S. monitoring and deterrence capabilities to counter the PRC’s intensifying use of “gray-zone tactics” against Taiwan and other Indo-Pacific partners.

The bill defines “gray-zone tactics” as activities short of open warfare that advance a state’s interests while avoiding kinetic military responses through a mix of diplomatic, economic, informational, and paramilitary tools.

Taiwan at the Center of PRC’s Aggression

The bill identifies Taiwan as a primary target of the PRC’s gray-zone tactics, citing the increased frequency of Chinese vessel incursions into national waters, airspace incursions, cyberattacks, disinformation campaigns, and economic coercion.

Crucially, the legislation highlights that Beijing employs these tactics with the specific purpose of coercing Taiwan into so-called “reunification” by gradually eroding Taiwan’s political cohesion, economic independence, and societal confidence without triggering kinetic escalation.

In their official press release, Senator Duckworth underscored, “Increasing PRC aggression in the Indo-Pacific doesn’t just impact our partners in the region—it threatens America’s economic and national security.”

“This legislation would strengthen our ability to counter the CCP’s malign geopolitical interests and its increasingly aggressive tactics in the Indo-Pacific,” Senator Blackburn added.

Key Measures to Counter PRC Gray-Zone Activities

The legislation contains key provisions to monitor, expose, deter, and counter PRC gray-zone activities. Specifically, the bill:

• Directs the Secretary of State to submit a strategy to better monitor and publicly expose PRC gray-zone tactics, while explicitly permitting the strategy to prioritize efforts to counter PRC activities in the Taiwan Strait and the broader Indo-Pacific.

• Mandates the establishment of an interagency task force to track, formulate, and strengthen tools to counter and mitigate gray-zone operations, evaluate progress toward the strategy’s objectives and performance indicators, and submit annual public reports to Congress.

• Instructs the Department of State to identify additional key areas for collaboration with U.S. Indo-Pacific allies and partners, the private sector, and academia to enhance collective capabilities to deter PRC gray-zone activities.

Implications

The bill reflects a more concrete and institutionalized U.S. response to the PRC’s growing gray-zone pressure and operations in the Indo-Pacific. It closely aligns with Senator Duckworth’s advocacy during the 2026 Taiwan International Ocean Forum in Taipei earlier in July, where she urged like-minded democracies to actively exercise their freedom of navigation in the Taiwan Strait and resolutely reject Beijing’s coercive attempts to establish a “new normal” in the waters surrounding Taiwan.

If enacted, the legislation would require the U.S. government to formulate a more cohesive strategy and action plan to counter Beijing’s gray-zone tactics in close coordination with U.S. allies and partners. Furthermore, it would also strengthen the U.S. response through a dedicated interagency task force, along with annual assessments and public reports to Congress, aimed at exposing PRC coercion and holding Beijing accountable.

Sources:

[1] Sen. Tammy Duckworth’s Office
https://www.duckworth.senate.gov/news/press-releases/duckworth-blackburn-introduce-bipartisan-bill-to-counter-peoples-republic-of-chinas-gray-zone-aggression-against-indo-pacific-partners

[2] S.5160 (Countering Gray Zone Aggression by the PRC Act; See the Full Text)
https://www.congress.gov/bill/119th-congress/senate-bill/5160
https://www.duckworth.senate.gov/imo/media/doc/countering_gray_zone_aggression_by_the_prc_act.pdf

[3] Formosan Association for Public Affairs (FAPA)
https://fapa.org/2026-0713-democracies-condemn-beijings-nuclear-capable-slbm-test-taiwan-international-ocean-forum-calls-for-greater-maritime-resilience/

Photos: CNA; Wikimedia Commons

AIT Signals Deeper U.S.-Taiwan Coast Guard Ties Amid Rising Chinese Maritime PressureㅤOn July 28, 2026, the American Ins...
08/03/2026

AIT Signals Deeper U.S.-Taiwan Coast Guard Ties Amid Rising Chinese Maritime Pressure

On July 28, 2026, the American Institute in Taiwan (AIT) publicly released, for the first time, a photograph showing U.S. and Taiwanese coast guard vessels operating side by side. The image depicts Taiwan’s 4,000-tonne Chiayi-class offshore patrol vessel Taipei (CG5005) sailing alongside the U.S. Coast Guard’s 4,500-tonne Legend-class cutter USCGC Midgett (WMSL-757).

AIT’s post stated that “the United States Coast Guard and the Taiwan Coast Guard are busy coordinating on shared maritime objectives, such as search and rescue, preparing for tropical storms, disaster relief, preserving maritime resources, countering illegal fishing, and interdicting illegal drug shipments at sea.”

International Pushback Against China’s Destabilizing Maritime Operations

The release came amid growing international concern over China’s recent “special maritime law enforcement operations” east of Taiwan. On June 24, 2026, the representative offices of the U.K., France, and Germany in Taipei issued a joint statement expressing concern over “novel Chinese activity in the waters east of Taiwan” and reiterating their opposition to “any unilateral change to the status quo,” particularly “by threat or use of force or coercion.”

On August 1, a U.S. Department of State spokesperson criticized Chinese Coast Guard activity east of Taiwan as “deeply destabilizing.” “By asserting authority over maritime areas that Taiwan has peacefully administered for over 70 years, China only exacerbates tensions,” the spokesperson said, adding, “We urge Beijing to cease its pressure against Taiwan and instead engage in meaningful dialogue with Taiwan’s democratically elected authorities.”

Why It Matters

Taiwan’s Ocean Affairs Council Minister Kuan Bi-ling (管碧玲) said AIT’s proactive release of the photo demonstrates that the U.S. fully recognizes that the Taiwan Coast Guard is the sole legitimate law enforcement agency in Taiwan’s waters and the exclusive partner for U.S. Coast Guard law enforcement cooperation in those waters.

Bonnie Glaser, managing director of the Indo-Pacific Program at the German Marshall Fund, said AIT’s post conveyed a message from Washington that “Taiwan is an important partner” and that “the United States is committed to working alongside Taiwan to promote shared objectives.” She added that the message reassured Taiwan and its people that they are not alone while warning Beijing that its attempts to isolate and bully Taiwan will not succeed.

Chen Wen-chia (陳文甲), a Taiwanese national defense strategy expert, noted that AIT’s post also reflected growing “paramilitary cooperation” between the U.S. and Taiwan. While the two sides lack formal military ties, such cooperation provides greater operational flexibility and facilitates intelligence sharing.

Implications

Deterring the escalation of China’s gray-zone coercion requires the U.S. to work closely with allies and partners to counter Beijing’s activities at sea and in the air, said Zack Cooper, a senior fellow at the American Enterprise Institute (AEI) and an expert on Indo-Pacific security.

Taiwan’s frontline experience and growing maritime law enforcement capabilities make it an indispensable partner in addressing these challenges. Continued U.S.-Taiwan cooperation will remain critical to strengthening regional resilience, preserving peace and stability across the Indo-Pacific, and safeguarding Taiwan’s democratic sovereignty against China’s coercion.

Sources:

[1] American Institute in Taiwan (AIT) Official page
https://www.facebook.com/share/p/19CvRHbuzV/

[2] Focus Taiwan
https://focustaiwan.tw/politics/202607290009

[3] Focus Taiwan
https://focustaiwan.tw/politics/202606240011

[4] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/08/03/2003861830

[5] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/07/29/2003861554

[6] Central News Agency (CNA)
https://www.cna.com.tw/news/aipl/202607290018.aspx

Photos: AIT Official page; Taiwan’s Coast Guard Administration

Taiwan Unveils Quadruped Robots to Strengthen Defense and Societal ResilienceㅤBetween June and July 2026, Taiwan publicl...
07/27/2026

Taiwan Unveils Quadruped Robots to Strengthen Defense and Societal Resilience

Between June and July 2026, Taiwan publicly showcased two separate quadruped robotics initiatives advancing both national defense and civilian resilience applications. The National Chung-Shan Institute of Science and Technology (NCSIST) demonstrated military-specific quadruped prototypes, while the Ministry of Economic Affairs (MOEA) and the Industrial Technology Research Institute (ITRI) presented a domestically developed quadruped robot platform designed for industrial inspection, navigation, and emergency response.

NCSIST Unveils Military Quadruped Prototypes

On June 2, 2026, NCSIST unveiled three military-specific robot dog prototypes designed for surveillance, reconnaissance, and combat support missions. Based on the Vision 60 quadruped robot developed by U.S.-based Ghost Robotics, the prototypes integrate NCSIST-developed systems that provide intelligence-gathering, patrol, and monitoring capabilities. The robot dog systems are being produced in Taiwan under U.S. technology licensing, reflecting Taiwan’s efforts to localize production and system integration.

The three prototypes include a LiDAR (light detection and ranging) and thermal-imaging model, an electro-optical reconnaissance model, and an armed model equipped with an NCSIST-developed remote-controlled weapon station. Their potential missions include security patrols, facility surveillance, nighttime monitoring, coastal defense, airfield security, riot control, and urban warfare. These robot dogs can also network with one another to share information and coordinate operations.

Building Taiwan’s Robotics Supply Chain

On July 8, 2026, MOEA announced a domestically developed quadruped robot platform created by ITRI in collaboration with key Taiwanese industry partners. Designed for industrial inspection, autonomous navigation, firefighting, and disaster response, the platform integrates technologies spanning core components, key modules, full-machine control, and AI software, thereby enabling Taiwanese companies to develop domestic modules and prototypes.

The initiative is designed to accelerate quadruped robot development and commercialization. It also aims to strengthen Taiwan’s presence in the global industrial quadruped robot market, which is projected to exceed US$4 billion by 2035. It leverages Taiwan’s strengths in information and communications technology (ICT), semiconductors, and precision machinery to develop indigenous technologies and build a non-China supply chain for critical components.

Implications

The parallel development of military and civilian quadruped robotic systems demonstrates how Taiwan is leveraging its technological and manufacturing strengths to advance autonomous technologies for both defense and civilian applications.

As Taiwan faces growing military pressure from China, expanding the deployment of unmanned systems will strengthen its self-defense capabilities by reducing personnel exposure to high-risk environments, improving operational flexibility, and enhancing overall societal resilience in a potential conflict.

At the same time, developing a trusted, non-China robotics supply chain can position Taiwan as a reliable partner in next-generation autonomous technologies while reinforcing its long-term defense and industrial resilience.

Sources:

[1] Focus Taiwan
https://focustaiwan.tw/sci-tech/202606020019

[2] Taipei Times
https://www.taipeitimes.com/News/front/archives/2026/07/12/2003860603

Photos: CNA

TSMC’s US$100 Billion U.S. Expansion Deepens Bilateral Industrial IntegrationㅤOn July 16, 2026, Taiwan Semiconductor Man...
07/20/2026

TSMC’s US$100 Billion U.S. Expansion Deepens Bilateral Industrial Integration

On July 16, 2026, Taiwan Semiconductor Manufacturing Co. (TSMC) announced a landmark additional US$100 billion investment in its Arizona operations. According to TSMC Chairman and CEO C.C. Wei (魏哲家), the new commitment will fund four additional leading-edge wafer fabrication plants and advanced packaging facilities. The announcement brings TSMC’s total planned U.S. investment to US$265 billion.

U.S. officials, including U.S. Commerce Secretary Howard Lutnick and American Institute in Taiwan (AIT) Director Raymond Greene, welcomed TSMC’s investment for strengthening supply chain resilience and creating high-paying American jobs.

AI Demand Accelerates Taiwanese Investment in the U.S.

Surging AI demand is accelerating TSMC’s U.S. expansion. At TSMC’s second-quarter earnings conference, Wei highlighted “very strong signal and positive outlook” from major cloud service providers, reaffirming TSMC’s confidence in a “multi-year AI megatrend.” He added that agentic AI and rapid data center construction are driving massive demand for advanced silicon, CPUs, and AI accelerators.

Beyond TSMC, Taiwan’s broader technology sector is also scaling up U.S. operations. In May, 20 Taiwanese companies — spanning semiconductor suppliers and AI server manufacturers — expressed interest in investing a combined US$35 billion in the United States.

Taiwan’s government has also introduced measures to support companies investing in the U.S., including a government-backed financing guarantee mechanism with an initial US$1.375 billion financing pool. Applications for the credit guarantees are expected to open as early as this July.

Urgent Double-Tax Relief for Deeper Economic Integration

TSMC’s latest U.S. expansion reflects a broader shift in U.S.-Taiwan economic relations toward deeper, long-term integration in investment and advanced manufacturing. Yet, the bilateral policy framework has not kept pace with this rapidly expanding economic relationship.

Taiwan remains the only top-ten U.S. trading partner without a bilateral tax agreement. The lack of bilateral double-tax relief poses a severe structural challenge, raising costs for Taiwanese firms operating in the U.S., with some estimated to face effective tax burdens of up to 51% on U.S. profits.

FAPA therefore urges the U.S. Senate to swiftly pass the United States-Taiwan Expedited Double-Tax Relief Act (S.199), whose House companion (H.R.33) passed by an overwhelming 423–1 vote in January 2025. Enacting the legislation would provide treaty-like tax relief and remove a major competitive disadvantage facing Taiwan.

Sources:

[1] Focus Taiwan
https://focustaiwan.tw/business/202607160019

[2] Focus Taiwan
https://focustaiwan.tw/business/202607170005

[3] Reuters
https://www.reuters.com/world/asia-pacific/tsmcs-second-quarter-profit-seen-hitting-record-ai-boom-2026-07-15/

[4] Taipei Times
https://www.taipeitimes.com/News/biz/archives/2026/05/08/2003856940

[5] Focus Taiwan
https://focustaiwan.tw/business/202606120016

[6] Formosan Association for Public Affairs (FAPA)
https://fapa.org/2026-0119-double-tax-relief-needed-after-taiwan-tariff-pact/

[7] S.199 / H.R.33 (United States-Taiwan Expedited Double-Tax Relief Act)
https://www.congress.gov/bill/119th-congress/senate-bill/199
https://www.congress.gov/bill/119th-congress/house-bill/33

Photos: CNA

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