SK Hynix pledges to boost output of AI memory chipsBloombergSK Group chairman Chey Tae-won pledged to grow production of artificial intelligence (AI) memory chips to meet a surge in demand from the global data center buildout. During conference in Washington on Friday last week, he also called high-bandwidth memory (HBM) a “monster chip” that is generating enormous profits for SK Hynix Inc. SK Hynix’s 12-layer HBM3E memory chip and an Nvidia Blackwell Ultra GPU are displayed at the SK AI Summit in Seoul on Nov. 3 last year. That record spending is causing a global shortage of memory chips, a market that is dominated by SK Hynix, Samsung Electronics Co and Micron Technology Inc.SK Hynix has sold out its entire slate of memory chips this year, while Micron has done similarly with its HBM offerings. However, Chey cautioned losses are still a possibility in the future due to potential changes in the competitive landscape caused by rapid technological shifts.

ECB increases scrutiny of European banks’ exposure to the AI industryBloombergThe European Central Bank (ECB) is delving into the risks faced by banks in the region from the artificial intelligence (AI) industry, amid heightened concern over hidden credit exposures and financial sector disruption. It is also running targeted workshops to identify how banks are using generative AI, said the people, who asked not to be named. A man walks past the European Central Bank logo at its headquarters in Frankfurt, Germany, on Dec. 18 last year. Banks and private credit firms globally have been pouring trillions of dollars into the AI buildout, which spans development companies to data centers and energy supply. Another banker said their firm is working on mapping its exposures to AI firms.

Hong Kong Court of Appeals upholds jail for 12 activistsReuters, HONG KONGHong Kong’s Court of Appeal yesterday rejected an appeal by 12 pro-democracy activists and upheld their jail terms in a national security case that critics say highlights Beijing’s crackdown on dissent. The appeal stems from the “Hong Kong 47” case, where many leading pro-democracy activists and politicians were arrested en masse in early 2021 and charged with conspiracy to commit subversion. Barrister Lawrence Lau arrives at the West Kowloon Magistrates’ Courts building as 12 pro-democracy activists mount appeals against their convictions, while the Department of Justice separately appeals against Lau’s earlier acquittal in Hong Kong yesterday. “By failing to overturn these wrongful convictions and sentences today, the court has missed a critical opportunity to correct this mass injustice,” said Fernando Cheung (張超雄), a spokesman for Amnesty International Hong Kong Overseas. “Peaceful opposition to a government is not a crime, and all remaining jailed members of the Hong Kong 47 should be released immediately and unconditionally,” he said.

The TAIEX rose 167.55 points, or 0.5 percent, to close at 33,773 after giving back most of its earlier gains as selling pressure emerged in afternoon trade. Turnover totaled NT$902.081 billion (US$28.67 billion), the third-highest daily trading value on record, highlighting heightened volatility as investors adjusted positions and locked in profits following the market’s recent rally. A woman looks at her phone in front of an electronic stock board at the Taiwan Stock Exchange in Taipei yesterday. Institutional trading showed mixed positioning. In the near term, local stock trading is expected to remain range-bound, with investors likely to digest developments in global trade policy and other macroeconomic signals, he said.

Taiwan can export dragon fruit, lychee, jujube to EU: Ministry of AgricultureBy Yang Yuan-ting and William Hetherington / Staff reporter, with staff writerTaiwan has secured another breakthrough in fruit exports, with jujubes, dragon fruit and lychees approved for shipment to the EU, the Ministry of Agriculture said yesterday. Taiwan exported 126 tonnes of lychees last year, valued at US$1.48 million, with Japan accounting for 102 tonnes. Photo: Yang Yuan-ting, Taipei TimesJujube exports totaled 103 tonnes, valued at US$514,000, primarily shipped to China, Hong Kong, Canada and Japan. Dragon fruit exports reached 143 tonnes, valued at US$506,000, with Hong Kong, Japan and Canada as the main markets. “As fruit production in the EU is dominated by temperate varieties, tropical fruits such as jujubes, dragon fruit and lychees are rarely cultivated locally,” the agency said.

Europe’s ‘China’ policy is flawedBy Rahul MishraChina has apparently emerged as one of the clearest and most predictable beneficiaries of US President Donald Trump’s “America First” and “Make America Great Again” approach. Yet this does not amount to a formal overhaul of Europe’s China policy, nor does it represent an explicit geopolitical realignment. Altering China policy in reaction to US unpredictability is neither coherent nor sustainable. Equally striking is the near-total absence of democratic values in this recalibration, despite their centrality to Europe’s declared foreign policy identity. The flurry of engagement exposes the incoherence of Europe’s China policy and its lack of a consistent strategy for managing Beijing while navigating deteriorating US-China relations.

US tells partners to honor dealsBloombergSenior US officials said US President Donald Trump’s tariff defeat at the US Supreme Court would not unravel deals negotiated with its partners as they sought to defend the administration’s assertive trade policies. He sought to separate those arrangements from the planned 15 percent global tariff Trump announced on Saturday. Photo: Bloomberg“We want them to understand these deals are going to be good deals,” Greer said. In New Delhi, officials cited similar reasons for India postponing talks in the US this week on finalizing an interim trade deal. “A deal is a deal,” the bloc’s executive arm said, adding that it expects the US to honor its commitments under a trade deal signed in August last year.

Countries hardest-hit by US tariffs now winnersFORTUNES REVERSED: The new 15 percent levies left countries with a 10 percent tariff worse off and stripped away the advantage of those with a 15 percent rateBloombergIn a swift reversal of fortunes, countries that had been hardest hit by US President Donald Trump’s tariffs have emerged as the biggest winners from the US Supreme Court’s decision to strike down his emergency levies. Still, “the peak level of uncertainty on tariffs and trade tensions has passed,” Morgan Stanley economists led by Chetan Ahya wrote in a note. The new 15 percent levy leaves countries with the earlier 10 percent rate worse off, with Australia and the UK in that position. “Imports from countries that will experience meaningful tariff reductions from the latest policy changes are likely to pick up in coming months,” Goldman economists wrote. “But the impact on GDP should be largely offset by increased inventory accumulation and consumption, reduced imports from other countries through which trade had been rerouted, and small reductions in imports from countries whose tariff rate has risen.”

Critically, the ruling against the use of IEEPA to unilaterally impose broad tariffs means that similar programs would need a clear and alternative legal basis involving congressional approval. It does not mean that the tariffs would disappear altogether, or that Trump is out of other options. Trade structures that emerge in the wake of Trump’s barrage of tariffs are unlikely to return to their previous arrangement. Technology transfers and establishing fabs in the US are aimed more at long-term strategic positioning than merely responding to tariffs. For Taiwanese corporations, right now is a moment for adjustment after the stress test of Trump’s tariff war.

Inter lead grows as rivals Milan and Napoli stumbleAFP, MILAN, ItalyAC Milan on Sunday slumped to a surprise 1-0 home loss to Parma to leave city rivals Inter 10 points clear at the top of Italian Serie A, after SSC Napoli lashed out at the refereeing following defeat at Atalanta BC. Napoli hit out at “shameful” refereeing after slipping to a 2-1 loss at top-four rivals Atalanta. Injury-hit reigning champions Napoli slid to fourth, now points 14 adrift of Inter. Napoli were incensed after having a penalty award overturned and then a goal disallowed in the first half. It’s shameful, I have no more words.”The visitors grabbed an early lead when Sam Beukema, one of three Napoli players left completely unmarked, headed in Miguel Gutierrez’s free-kick.

He added that he would relay Lai’s intentions to the three political parties to reach a consensus, upon which the Legislative Yuan would issue a formal invitation to the president. The opposition parties have previously called for Lai to deliver an address to the legislature followed by a question-and-answer session. The closed-door tea gathering was also attended by Vice President Hsiao Bi-khim (蕭美琴), Premier Cho Jung-tai (卓榮泰), Judical Yuan Acting President Shieh Ming-yan (謝銘洋), Examination Yuan President Chou Hung-hsien (周弘憲) and Control Yuan Acting President Lee Hung-chun (李鴻鈞). During the reception, Lai called for transformation and unity, and said that the ruling and opposition parties should resolve issues together. Hopefully, the reception would be a first step in enacting these changes, for the sake of the nation, society and the people of Taiwan, Lai said.

Kim re-elected North Korean leaderPOLITICAL GOALS: Kim Jong-un revamped the party’s Central Committee, replacing aging military chiefs, and is expected to further bolster the nation’s nuclear arsenalAP, SEOULNorth Korean leader Kim Jong-un was re-elected to the top post of the ruling Workers’ Party, with delegates crediting him for bolstering the nation’s nuclear arsenal and strengthening its regional standing, state media reported yesterday. A photograph taken on Sunday and released by the Korean Central News Agency yesterday shows the fourth day of the Ninth Congress of the Workers’ Party of Korea in Pyongyang. North Korea’s official Korean Central News Agency said Kim was re-elected as the party’s general secretary with the “unshakable will and unanimous desire” of thousands of delegates on the fourth day of meetings on Sunday. Under party rules, the congress, which Kim has held every five years since 2016, elects the general secretary to serve as the party’s top representative and leader. China’s state-run Xinhua news agency said Xi congratulated Kim on his re-election.

EDITORIAL: Trump’s tariff war not over yetAfter the US Supreme Court on Friday ruled that US President Donald Trump’s tariffs imposed on international trading partners under the 1977 International Emergency Economic Powers Act (IEEPA) were illegal, he within hours signed a proclamation imposing a flat 10 percent tariff on all imports under Section 122 of the Trade Act of 1974, even though that authority only lasts 150 days. For anyone hoping that the US Supreme Court’s decision would mark the end of Trump’s tariff policies, it did not. While the ruling is a setback for the White House, Trump’s trade war will not go away; it could just get more complicated and last longer than expected, as his administration turns to other tools. So, despite the US Supreme Court disrupting Trump’s trade agenda, the White House could still rebuild a new framework through other, more durable means. Still, Taipei must enhance its exchanges with Washington and further diversify its global markets to limit the impact of potential long-term risks from US tariff policy.

Rain expected over 228 holidayStaff writer, with CNAThe weather across Taiwan is to turn unstable starting on Wednesday as new weather systems move in, with rain and a chance of snow on high mountains expected over the 228 Peace Memorial Day holiday weekend, the Central Weather Administration (CWA) said today. Conditions are to remain relatively stable tomorrow, although cloud cover is to increase in western Taiwan, forecasters said. Beginning on Wednesday, a passing front and strengthening northeasterly seasonal winds are to bring showers to Taiwan's northern coast, eastern Taiwan, the Hengchun Peninsula (恆春半島) and mountainous parts of northern Taiwan, the CWA said. Although the seasonal winds are forecast to weaken on Thursday, another approaching front is to lead to ongoing rain in northern and eastern Taiwan, with showers gradually intensifying, it said. Rainfall would become more widespread during the 228 holiday weekend, the CWA said, adding that from Friday to Sunday, temperature and moisture conditions may support sporadic snowfall on mountains above 3,500m.

Lai calls for unity at rare reception with all five yuan leadersBy Chen Yun and Hollie Younger / Staff reporter, with staff writerPresident William Lai (賴清德) this morning called for transformation and unity at a Lunar New Year tea reception for the heads of all five government branches. It marked the first time in Taiwan’s history that the heads of all five branches came together for a reception. Photo courtesy of the Presidential OfficeAlso in attendance were Premier Cho Jung-tai (卓榮泰), Legislative Speaker Han Kuo-yu (韓國瑜), Judical Yuan Acting President Shieh Ming-yan (謝銘洋) Examination Yuan President Chou Hung-hsien (周弘憲) and Control Yuan Acting President Lee Hung-chun (李鴻鈞). The opposition parties have previously called for Lai to deliver an address to the legislature followed by a question-and-answer session. Hopefully the reception would be a first step in enacting these changes, for the sake of the nation, society and the people of Taiwan, Lai said.