AI Chip Smuggling Probe: Taiwan prosecutors expanded raids tied to alleged illegal exports of advanced AI servers to China, Hong Kong and Macau, including Supermicro’s Taiwan office and two listed firms, after earlier seizures of Nvidia-equipped servers; investigators say document forgery and breach of trust are involved, with nine people now under investigation. Drone Defense Showdown: The KMT unveiled a NT$240 billion, six-year drone plan and a separate procurement bill, aiming to “normalize” funding through the general budget as opposition and the government clash over how to spend billions on unmanned systems. Crypto Regulation: Taiwan’s legislature passed a framework law for crypto firms, including licensing for virtual asset service providers and stablecoin rules requiring full reserve backing, with criminal penalties for illegal operations and market manipulation. Trade Leadership Shake-up: Premier Cho suspended Taiwan’s trade representative Yang Jen-ni after a Cabinet probe found workplace bullying allegations involving her late deputy, shifting leadership of the trade office to deputies and the vice premier. Cross-Strait Security Messaging: President Lai told military cadets to resist Chinese espionage and coercion as Taiwan continues to warn about rising PLA activity around its waters. Metro Upgrade: Taipei Metro will accept major credit cards and mobile payments from July 1, but those rides won’t count toward the frequent rider rewards program.