Opening

South Korean President Lee Jae-myung rarely speaks this bluntly in a cabinet meeting, but this week he admitted that recent attacks on banks showed "signs" of AI involvement, with an open-source tool suspected to originate from China exposing the personal data of more than 68,000 people. Today's show also covers Foxconn's monthly revenue breaking NT$1 trillion for the first time, Japanese local governments forming delegations to Hsinchu to chase semiconductor opportunities, and why Saudi Arabia, Turkey, and Pakistan decided on the same day to deploy troops together.

Today's International Highlights

1. Foxconn's Monthly Revenue Breaks NT$1 Trillion for the First Time, Q3 Up 47% Year-on-Year

• What happened: On October 5, Foxconn reported Q3 revenue of NT$3.03trillion,up47.13.03\; trillion,\; up\; 47.1\%\; year-on-year\; and\; beating\; market\; expectations.\; September\text{'}s\; revenue\; alone\; hit\; NT$1.16 trillion, up 38.4% year-on-year, a company record and the first time it has crossed the NT$1 trillion threshold in a single month. The company attributed the growth to AI-driven demand for cloud networking products, along with strong sales of smart consumer electronics including the iPhone.
• Why it matters: This report card is seen as a direct barometer of heat in the global AI server supply chain, showing demand is still accelerating rather than cooling off as some had feared.
• Taiwan angle: A single Taiwanese company generating over NT$1 trillion in revenue in one month ripples across the entire electronics industry's capacity planning, workforce allocation, and export figures.
• Source: The Star (Malaysia) (https://www.thestar.com.my/tech/tech-news/2026/10/05/foxconn-third-quarter-revenue-jumps-47-yy-beats-market-forecast)

2. Japanese Local Governments Form Delegations to Hsinchu to Chase Taiwan's Semiconductor Opportunities

• What happened: Japanese local governments have recently stepped up their efforts to court Taiwan, sending trade delegations to explore AI and semiconductor partnerships. Kitakyushu, an industrial city in Kyushu, sent its first delegation to Hsinchu, home to TSMC's headquarters. In July, it also held an investment briefing near the Hsinchu Science Park, with representatives from Tokyo Electron and Yaskawa Electric in attendance.
• Why it matters: Taiwan's semiconductor cluster advantage, once a target for national governments eager to attract investment, has now become something Japanese local governments are actively courting to boost their own cities' economies.
• Taiwan angle: Japanese local governments actively pursuing Hsinchu will shape Taiwanese firms' next moves on overseas expansion to Japan, talent deployment abroad, and supply chain reorganization.
• Source: Nikkei Asia (https://asia.nikkei.com/business/tech/semiconductors/japan-local-governments-step-up-taiwan-outreach-for-chip-investment)

3. South Korean President Confirms: Bank Hacks Show "Signs" of AI Involvement

• What happened: On October 6, South Korean President Lee Jae-myung told a cabinet meeting that recent hacks on multiple commercial banks showed "signs that artificial intelligence was used in some of the attacks," causing public unease. More than seven South Korean financial institutions have been affected, with over 68,000 people's personal data exposed. Shinhan Bank reported that loan application data for about 25,000 customers was leaked, including names, phone numbers, and annual income. A government official noted that an open-source penetration testing tool suspected to originate from China, called Artex AI, was likely used in the attacks, though they cautioned that IP addresses alone are not a reliable way to determine origin.
• Why it matters: Lee stated plainly that AI now lets people without specialized skills easily launch attacks. South Korean police have been ordered to investigate, and the incident is being treated as a concrete case study of AI lowering the barrier to cyberattacks.
• Taiwan angle: The same kind of open-source automated attack tools pose an equally low barrier for Taiwan's banking sector, effectively giving the Financial Supervisory Commission and local banks a dress rehearsal for this type of attack.
• Source: TechXplore (via AFP) (https://techxplore.com/news/2026-10-south-korea-ai-banking-hacks.html)

4. Mecca Mutual Defense Pact Activated for the First Time: Saudi Arabia, Turkey, and Pakistan Join Forces

• What happened: On October 5, Saudi Arabia, Turkey, and Pakistan issued a joint statement after an emergency meeting in Riyadh, announcing the immediate activation of the collective defense clause of the Mecca Mutual Defense Pact signed this past August, deploying military forces to Saudi Arabia. The three parties condemned in the strongest terms reported attempts to attack Mecca and Medina, as well as ongoing attacks on Saudi cities and civilian and economic infrastructure. Pakistani Defense Minister Khawaja Asif said both Pakistani and Turkish forces are playing supporting roles in the theater, with only Saudi forces currently engaged in combat.
• Why it matters: This marks the first time the pact has actually been invoked since it was signed, signaling that Houthi attacks from Yemen against Saudi Arabia are now considered a threat serious enough to trigger collective defense.
• Taiwan angle: If the Middle East front expands further, oil and LNG spot prices will respond directly, and Taiwan relied on imports for more than 99% of its oil and natural gas needs in 2025.
• Source: Middle East Eye (https://www.middleeasteye.net/news/saudi-arabia-turkey-and-pakistan-activate-mecca-pact-amid-war-houthis)

5. Russian Drones Shift Focus to Kyiv's Bridges, Signaling a Change in Attack Pattern

• What happened: Russia has recently escalated its offensive against Ukraine, targeting bridges in the capital Kyiv with drones for several consecutive days. This wave of attacks differs from the previous pattern of concentrated strikes on power infrastructure, instead aiming to paralyze internal city traffic and daily life, with the bridges themselves, rather than rear supply lines, becoming the primary target.
• Why it matters: The shift in focus from energy infrastructure to transportation hubs shows Russia is trying new ways to disrupt daily life in Ukraine's capital.
• Taiwan angle: Using low-cost drone systems to systematically destroy bridges and transportation hubs is exactly the attack scenario that Taiwan's critical infrastructure protection planning worries about most, echoing recent budget discussions on anti-drone defenses and bridge and tunnel protection.
• Source: NPR (https://www.npr.org/2026/10/05/nx-s1-5989637/russias-attacks-on-ukraine-escalate-as-its-drones-target-bridges-in-kyiv)

6. Kenya Confirms First Ebola Case, Patient Dies Two Days After Flying Home

• What happened: On October 6, Kenya confirmed its first-ever domestic Ebola case. The patient, a Kenyan national who had lived in the Democratic Republic of Congo for seven years, fell ill a month earlier and sought treatment at several hospitals. He then traveled overland to Kampala, Uganda, to catch a flight, arriving in Nairobi on Saturday. He tested positive during isolation late Monday night and died shortly after. The Congo outbreak, which began in May, has now surpassed 4,000 deaths, and Kenya is the fourth country to report a confirmed case since the outbreak began, following Uganda and France.
• Why it matters: The fact that the case crossed three countries by road and air before being caught shows there are still gaps in outbreak surveillance along cross-border travel routes.
• Taiwan angle: This cross-border case directly affects fever screening intensity at Taoyuan International Airport and risk assessments for business travelers and medical teams on African routes.
• Source: U.S. News & World Report (via AP) (https://www.usnews.com/news/health-news/articles/2026-10-06/kenya-confirms-first-ebola-case-imported-from-congo-after-patient-dies-in-nairobi)

7. 2026 Nobel Prize in Physics: A 38-Year-Old "Crazy Idea" Finally Pays Off

• What happened: On October 6, the Royal Swedish Academy of Sciences announced that the 2026 Nobel Prize in Physics goes solely to Belgian-born physicist Francis Halzen, recognizing his decisive contributions to the IceCube Neutrino Observatory in Antarctica and the discovery of high-energy neutrinos from astrophysical sources. Halzen first proposed using Antarctic ice to capture neutrinos back in 1988. The IceCube team announced in 2013 that it had detected 28 neutrinos originating from outside the solar system, two of which were nicknamed Bert and Ernie.
• Why it matters: The 38-year journey from proposal to prize is a textbook example of a long-cycle basic research path, once again proving that the payoff from fundamental science often takes decades to materialize.
• Taiwan angle: For Taiwan's academic community, currently expanding research budgets and seeking to join large international experimental collaborations, this is the most concrete reference point for long-cycle investment.
• Source: The Nobel Prize (official press release) (https://www.nobelprize.org/prizes/physics/2026/press-release/)

Closing

Perhaps the most important line from today's show comes straight from South Korean President Lee Jae-myung: AI has made it possible for people without specialized skills to launch cyberattacks, a reminder for every nation's financial institutions. In the coming days, I'll keep tracking how Spain's snap election unfolds and whether the Mecca Defense Pact ends up widening the Middle East front. This is Muyan, see you tomorrow.