UNITED DAILY NEWS: Taiwan Simulates Maritime Blockade Response as Geopolitical Tensions Simmer

United Daily News led with coverage of a Taiwanese government tabletop exercise simulating a response to Chinese maritime coercion. The drill was conducted following the intrusion of Chinese coast guard vessels, with officials gaming out a scenario in which Beijing demands that all shipping to the island first obtain approval from the Chinese government and authorizes the boarding or seizure of vessels. Taiwanese officials have grown increasingly wary of non-military pressure tactics Beijing could employ, including using its Coast Guard to assert legal jurisdiction over shipping to the island. Earlier this month, China’s Coast Guard mounted what it described as a “law enforcement” patrol off Taiwan’s east coast and claimed to have inspected shipping.

In a related development, Legislative Speaker Han Kuo-yu, currently on a visit to the United States, met with U.S. officials on June 25, accompanied by Ambassador Yu Da-yui. Han emphasized that while Taiwan’s legislative branches frequently disagree and engage in heated debate, there is a broad consensus across party lines on strengthening Taiwan’s self-defense capabilities. U.S. officials reaffirmed that America’s Taiwan policy remains unchanged.

On the judicial front, United Daily News reported that the Taiwan High Court on June 25 overturned a first-instance verdict in an espionage case involving a former Democratic Progressive Party staffer. Ho Jen-chieh, who had served as a secretary and confidential assistant to former Foreign Minister Joseph Wu, was originally sentenced to eight years and two months in prison under the National Secrets Protection Act. The high court acquitted him in a second-instance ruling. The dramatic reversal has sparked public skepticism regarding inconsistencies in sentencing between the first and second trials.

United Daily News also featured a commentary piece addressing the U.S.-Iran ceasefire memorandum, which allocates US$300 billion for reconstruction. According to Japanese media reports, more than half of the funds have already been pledged by Japanese and other foreign enterprises, while South Korean media indicated that Japanese and South Korean companies would bear the majority of the remaining burden. The commentary drew a historical parallel: “This so-called ‘reconstruction fund’ is essentially war reparations—no different from the massive silver indemnities China paid to foreign powers in the late Qing dynasty. Japan and South Korea didn’t participate in the war and are among its primary victims—yet now they’re expected to pay for reconstruction? How can that be?” The piece further quoted the late former U.S. Secretary of State Henry Kissinger: “It may be dangerous to be America’s enemy, but to be America’s friend is fatal.” The commentary warned the DPP administration not to forget past lessons and cited former President Donald Trump’s reported private remarks that he “would not go to war for Taiwan,” urging the government to heed public opinion trends showing that a majority of citizens believe Taiwan should extend goodwill toward the mainland.

LIBERTY TIMES: Torrential Rains Paralyze Southern Taiwan, AIT Kaohsiung Closes

Liberty Times devoted its front page to the devastating rainstorms battering southern Taiwan. Affected by the outer bands of Typhoon Mekkhala and strengthening southwesterly winds, continuous downpours have inundated the region. The Tainan city government announced early this morning that all schools and offices would be closed for the day, citing significant rainfall forecast during the morning commute based on the 11:30 p.m. precipitation report. Kaohsiung city followed suit with an emergency declaration at 12:40 a.m., urging residents to remain vigilant for heavy rainfall through the morning and to take flood prevention measures. Pingtung county also suspended work and classes for June 26.

The severe flooding prompted the American Institute in Taiwan (AIT) to announce that its Kaohsiung branch would remain closed for the day, while the Taipei office in Neihu would operate normally. AIT advised all U.S. citizens residing in or planning to travel to rain-affected areas to monitor local news for the latest weather and safety information.

With schools in Kaohsiung in the midst of final exam week, the city’s education bureau announced that exams originally scheduled for today would be postponed, with individual schools notifying students and parents of adjusted schedules through their internal channels. In Nantou’s mountainous regions, the Aowanda National Forest Recreation Area and Tianchi Mountain Villa implemented precautionary closures starting June 26 due to persistent heavy rain.

Liberty Times also reported that 40 U.S. lawmakers met with a delegation of Taiwanese legislators during the same period.

On the technology front, Liberty Times covered Micron Technology’s blockbuster fiscal third-quarter 2026 earnings. The memory chip giant reported revenue of US$41.46 billion, up 346% year-over-year, with earnings per share of US$25.11—a more than twelvefold increase. Gross margins reached an extraordinary 84.9%, with revenue, profits, and gross margins all setting single-quarter records. Micron projected that overall memory supply tightness would not begin to ease until at least 2028. Taiwan’s memory industry viewed Micron’s results as “explosively good” and a highly positive bellwether for the sector, signaling that AI development is exceeding expectations, memory’s importance is rising, and shortages and price increases will persist.

In other technology news, Qualcomm announced multiple data center products and solutions at its Investor Day, revealing a multi-year agreement with Meta. Taiwanese suppliers including Compal, Hon Hai, Giga-Byte, Nanya Technology, and UMC are among Qualcomm’s partners. Nanya Technology President Lee Pei-ying stated: “This collaboration with Qualcomm represents a significant milestone in our strategic partnership. Nanya Technology looks forward to providing innovative and reliable technology solutions that enhance performance, scalability, and future development to meet the growing demands of AI and next-generation data centers.”

CHINA TIMES: Espionage Acquittal, Cross-Strait Tensions Dominate

China Times led with the reversal in the espionage case involving former Foreign Minister Joseph Wu’s secretary. The acquittal of Ho Jen-chieh in the second trial has drawn significant public attention, particularly given the severity of the original eight-year sentence and the national security implications of the case.

The newspaper also covered the joint statement issued on June 24 by the U.S., U.K., France, and Germany’s representative offices in Taiwan, which asserted that China’s law enforcement operations in waters east of Taiwan threaten regional stability. In response, the Global Times, a Chinese state-affiliated media outlet, published an editorial declaring: “A few external countries think they can back ‘Taiwan independence’ separatist forces by making irresponsible claims about China’s legitimate law enforcement patrols? Not a chance”. The editorial stated that China’s relevant law enforcement patrol activities are primarily aimed at Japan and the Philippines’ illegal initiation of so-called “delineation negotiations” involving waters east of Taiwan, warning that “Japan and the Philippines are attempting to privately trade China’s maritime rights and interests—China naturally cannot accept this and will absolutely not sit idly by”.

China Times also reported that Taiwan’s Ministry of National Defense detected two Chinese military aircraft entering the southwestern air defense identification zone and six Chinese naval vessels operating around Taiwan between 6 a.m. on June 25 and 6 a.m. on June 26, totaling eight Chinese military assets active in the vicinity. The ministry stated that it was closely monitoring and responding to the activities.

ECONOMIC DAILY NEWS: Micron’s Blockbuster Earnings Silence Memory Chip Skeptics

Economic Daily News led its five-item financial wrap-up with Micron Technology’s stunning earnings report. The newspaper highlighted that Micron’s gross margins surged to an unprecedented 84.9%, making it the top performer among U.S. tech stocks. The company’s forecast that it “cannot see a point where supply will catch up with demand” signaled that memory chip shortages have no end in sight. Asian memory stocks rallied across the board, with Japan’s Kioxia surging over 12% and South Korea’s SK Hynix jumping 13%.

The second major story covered rising U.S. inflation in May, with strong personal consumption expenditures (PCE) and personal income growth—largely driven by rising energy prices—increasing the likelihood of interest rate hikes.

The third item cited a New York Times report on how AI is exacerbating the K-shaped economic divergence in Taiwan and South Korea—the wealthy grow richer while the general public experiences little benefit. Both countries are home to a small number of companies producing AI chips, and surging global demand for AI has unleashed a boom not seen in years.

Fourth, Economic Daily News covered Qualcomm’s historic transformation plan unveiled at its annual Investor Day, as the company makes a major push into the AI data center market. The company announced its initial ecosystem of 35 partners—with UMC as the sole foundry partner on the list. The notable absence of TSMC from the lineup sparked considerable market discussion.

Fifth, the Executive Yuan on June 25 passed amendments to the Income Tax Act, Housing Tax Act, and Land Tax Act. Subject to Legislative Yuan approval, the changes will be retroactively applied from January 1, 2026, including a 50% increase in the child dependency exemption to NT$151,500.

Economic Daily News also reported that the Taipei Exchange officially transitioned its corporate governance evaluation system to an “ESG Evaluation” in 2026 and joined the International Corporate Governance Network (ICGN). The Taipei Exchange stated that joining ICGN will enable it to stay abreast of the association’s latest “Global Governance Guidelines” and sustainable voting policies, ensuring domestic evaluation indicators remain forward-looking and helping listed companies adapt to changing international regulations in advance.

COMMERCIAL TIMES: Memory Shortage to Extend Beyond 2027, Silicon Wafers Signal Price Hikes

Commercial Times led with the 17th Taiwan Warrants King competition, which officially kicked off on June 26. At the launch ceremony, Financial Supervisory Commission Vice Chairman Chen Yen-liang stated that the Taiwan Warrants King trading competition holds profound significance for financial education promotion and capital market development. Looking at the historical number of warrant issuances and cumulative trading volume, the event has successfully expanded market participation. The FSC will continue to support the long-term development of the warrants market through both institutional and promotional measures.

Chen noted that the FSC has been promoting warrants market development in recent years. Taking the “warrant hedging tax reduction” implemented at the end of 2023 as an example, the transaction tax was reduced from 0.3% to 0.1%. “For securities firms, this is undoubtedly a major benefit—it’s not just a tax reduction but has successfully expanded market participation, achieving a triple-win situation of ‘government concession, securities firm empowerment, and investor profit,’” he said.

The Commercial Times reported that over the previous 16 editions of the Taiwan Warrants King event, cumulative registrations reached 572,000 people, with cumulative purchase amounts approaching NT$212.5 billion. When the first edition was held in 2010, the market had just over 10,000 warrant listings; today, warrant issuances have exceeded 50,000 for five consecutive years. This year’s event features eight major securities firms: Yuanta Securities, CTBC Securities, Taishin Securities, SinoPac Securities, Mega Securities, Cathay Securities, KGI Securities, and Capital Securities.

The newspaper also reported that Micron’s earnings and guidance exceeded market expectations, with the company forecasting that memory market supply shortages would persist at least until 2027 amid AI-driven demand—sending global memory leaders higher on June 25, with SK Hynix surging over 13%. The New Taiwan dollar continued its slide, breaking through the 31.8 level on heavy volume.

On the semiconductor wafer front, Commercial Times reported that GlobalWafers, Wafer Works, and Taisil have all recently signaled price increases. Six-inch wafers have already completed their price hikes, eight-inch demand is rapidly heating up, and twelve-inch products have begun price negotiations with customers. The newspaper also noted that the U.S.-hosted “Silicon Hegemony” summit convened in Washington on June 25, with Taiwan participating as a non-signatory. The U.S. State Department stated that Taiwan and the U.S. cooperate closely in supply chains and artificial intelligence, with Taiwan’s advanced manufacturing playing a key role in driving the AI revolution.

REGIONAL EDITIONS: Flood Coverage Reveals Media Disparities

All major newspapers devoted substantial regional coverage to the flooding disaster. According to the Central Weather Administration’s heavy rain advisory issued early on June 26, Pingtung and Kaohsiung faced localized extreme heavy rain or super-extreme heavy rain, with the Hengchun Peninsula experiencing heavy to extreme rain. A total of 19 counties and cities remained under heavy rain advisories. In Hsinchu County, Zhubei City Mayor Cheng Chao-fang, after receiving authorization from the county government, announced a work and class suspension starting at noon.

Notably, media coverage of the flooding varied significantly. United Daily News dedicated a larger resource to flooding in Kaohsiung and Pingtung, with less coverage of the Taipei metropolitan area. China Times featured Pingtung flooding prominently on its A8 front page, while giving minimal coverage to flooding in Taipei’s Neihu district—and emphasized that the water receded within one hour. Liberty Times, by contrast, ran local front-page stories covering flooding in both Taipei and the Kaohsiung-Pingtung region.

In other regional news, the Executive Yuan approved stricter parole restrictions for drug-impaired driving and repeat drunk driving offenders within a five-year period. Additionally, those convicted of intentional homicide, child abuse resulting in death, or causing severe injury—if sentenced to life imprisonment or ten or more years—will also be ineligible for parole.