Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.
The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.
Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.
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Mexico has strongly opposed Google’s decision to rename the Gulf of Mexico as the ‘Gulf of America’ for US users of Google Maps. President Claudia Sheinbaum has urged the tech giant to reverse the change, which follows a decree by the US government under President Donald Trump. She argues that the long-established name is internationally recognised and should not be altered unilaterally.
Sheinbaum reiterated Mexico’s stance on Thursday, stressing that Google has yet to address the country’s concerns. She pointed out that the US government’s authority extends only to its territorial waters and does not justify a broader renaming of the Gulf. While the name remains unchanged for users in Mexico, Google Maps outside the two countries now displays both names.
If Google refuses to restore the original name, Mexico is prepared to take legal action, Sheinbaum warned. ‘If necessary, we will file a civil suit,’ she stated, adding that the government’s legal team is already exploring its options. Google has not yet responded to the controversy.
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Taiwan’s GlobalWafers confirmed on Friday that its investments in the US are proceeding as planned, despite potential changes under the US CHIPS Act. The company has been awarded $406 million in government grants to expand its silicon wafer production in Texas and Missouri. However, the Biden administration is considering changes to some CHIPS Act funding, which has raised concerns for GlobalWafers, as sources indicated there could be delays or renegotiations of some semiconductor-related disbursements.
GlobalWafers CEO Doris Hsu stated that the company has not yet received any notifications regarding changes to its subsidy terms. She emphasised that, if adjustments to the CHIPS Act do occur, the company would need to reassess its investment strategy in the US. Hsu added that the decision would depend on factors such as US demand, pricing conditions, and potential tariffs, though she noted that these scenarios are still hypothetical at this stage.
The company is moving forward with its expansion plans across three US plants, with funding tied to specific milestones. Hsu reassured that the planned investments are continuing according to schedule, with no immediate changes to the company’s strategy. GlobalWafers remains optimistic about its US operations, bolstered by its existing factories in the country and its strong global presence.
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The European Union has dismissed claims that recent decisions to scale back planned AI regulations were influenced by pressure from the US Trump administration. The bloc recently scrapped the AI Liability Directive, a draft law intended to make it easier for consumers to sue over AI-related harms. EU digital chief Henna Virkkunen stated that the move was driven by a desire to enhance competitiveness by reducing bureaucracy and regulatory burdens.
Washington has encouraged a more lenient approach to AI rules, with US Vice President JD Vance urging European lawmakers to embrace the ”AI opportunity” during a speech in Paris.
The timing of the European Commission‘s 2025 work programme release—one day after Vance’s remarks—has fuelled speculation about US influence over the bloc’s regulatory decisions. However, the EU insists that its focus remains on fostering regional AI development rather than bowing to external pressure.
The upcoming AI code of practice will align reporting requirements with existing AI legislation, ensuring a streamlined regulatory framework. The Commission’s work programme emphasises a ”bolder, simpler, faste” approach, aiming to accelerate AI adoption across Europe while maintaining regulatory oversight.
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Donald Trump announced plans to impose tariffs on Canada and France in response to their digital services taxes on US technology companies. The former president criticised the taxes as unfair, arguing that only the United States should have the right to tax its own firms.
Canada began implementing the levy last year to ensure companies like Alphabet and Amazon contribute fairly despite often booking profits in low-tax jurisdictions.
Trump directed his economic team to develop a strategy for reciprocal tariffs against any country imposing duties on US imports. A White House fact sheet claimed that Canada and France each collect over $500 million annually from US firms through digital taxes, costing American businesses more than $2 billion per year. The statement argued that retaliatory tariffs would restore fairness to global trade.
The digital tax dispute has been a long-standing issue, with Washington previously challenging Canada’s approach under Joe Biden’s administration.
The United States had sought trade dispute consultations, calling the tax discriminatory. The office of Canadian Prime Minister Justin Trudeau has not yet commented on Trump’s latest tariff proposal.
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The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production. Sources indicate that ongoing projects under the 2022 law are being reviewed for compliance with new policy priorities, potentially leading to renegotiations or delays.
GlobalWafers, a Taiwanese company set to receive $406 million for projects in Texas and Missouri, noted that Washington has not yet communicated any changes.
However, new White House policies are reportedly under review, including those related to unionised labour and childcare for factory workers. Each subsidy agreement has unique milestones that recipients must meet to secure funding.
Concerns over companies expanding operations in China despite receiving CHIPS funding have also emerged. Intel, for example, announced a $300 million investment in a Chinese facility after receiving substantial subsidies.
The Semiconductor Industry Association has expressed its willingness to collaborate with the Trump administration to streamline program requirements and maintain progress.
Industry giants such as TSMC, Samsung, and Intel continue to navigate the shifting landscape of the CHIPS Act, with no immediate clarity on how changes will affect existing agreements. The White House has yet to respond to requests for further comment on these developments.
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A federal judge in Washington, DC has temporarily halted the US Securities and Exchange Commission’s lawsuit against Binance. The 60-day pause comes after both the SEC and the cryptocurrency exchange requested time to explore a resolution, citing the potential impact of a newly created SEC task force.
The task force, launched last month, focuses on reviewing cryptocurrency regulations and is led by Commissioner Hester Peirce, known for her pro-crypto stance.
The initiative may pave the way for progress in resolving the case, which accused Binance of inflating trading volumes, misusing customer funds, and misleading investors.
The lawsuit, filed in June 2023, targeted Binance and its founder Changpeng Zhao for alleged regulatory violations. The exchange has denied wrongdoing but continues to face scrutiny from US regulators.
A potential leadership change at the SEC could also influence the case. Paul Atkins, nominated by Donald Trump to lead the agency, is seen as supportive of the cryptocurrency industry. He would replace Gary Gensler, who has taken a stricter approach to crypto regulation.
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Taiwan‘s President Lai Ching-te has pledged to address concerns raised by former US President Donald Trump regarding Taiwan’s semiconductor industry. Speaking after a National Security Council meeting, Lai acknowledged the importance of global semiconductor supply chains and vowed to work with Taiwan’s semiconductor sector to develop strategies to address US concerns. He emphasised the need for democratic nations, including the US, to collaborate on creating a “democratic supply chain” for advanced chips, particularly in the growing AI sector.
Lai also reassured the US of Taiwan’s commitment to contributing to the international economy, noting that Taiwan, home to the world’s largest contract chipmaker, TSMC, plays a vital role in the semiconductor market. TSMC is heavily invested in the US, including a $65 billion investment in new factories in Arizona. Despite these efforts, Taiwan’s defence spending remains a topic of criticism, particularly from Trump, who has repeatedly highlighted Taiwan’s insufficient military expenditure amid increasing threats from China.
In response to US concerns, Lai revealed plans to propose a special budget to raise Taiwan’s defence spending from 2.5% of GDP to 3%. This proposal is currently being debated in parliament, where opposition parties hold a majority. Lai stressed that Taiwan’s determination to defend itself must be clear, as international allies continue to voice concerns over its defence readiness.
Finally, Lai reiterated Taiwan’s key role as a reliable trading partner to the US, especially in high-tech exports such as semiconductors. Taiwan’s trade surplus with the US surged by 83% last year, with exports reaching a record $111.4 billion.
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The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.
Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.
Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.
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Tencent, a leading Chinese tech giant, has won a significant copyright infringement case in a US district court. The ruling resulted in nearly $85 million in compensation after a Taiwan-based TV box firm, Unblock Tech, and its distributors were found guilty of violating copyrights on over 1,500 Tencent shows, including ‘Little Days’ and ‘Three Body Problem’.
The judgement was handed down by the US District Court for the Western District of Texas. Tencent units, including Tencent Penguin Film and Tencent Technology, brought the case against the defendants for copying, distributing, and importing the content without permission.
Neither Tencent nor Unblock Tech provided comments regarding the ruling.
Analyst Vivian Toh highlighted the challenges of addressing cross-border infringement, stating that Tencent’s success underscores its commitment to protecting intellectual property.
The win reflects the broader issue of video content piracy, which remains a persistent problem across global markets.
Tencent has also pursued similar cases in China, targeting TikTok and Douyin-owner ByteDance over unauthorised use of its content. The outcomes of those lawsuits have yet to be publicly disclosed.
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