The Taiwanese tech giant reports 40.2% profit growth while geopolitical tensions and privacy scandals reshape the global business landscape.

Delta Electronics' AI-Driven Success

In today's rapidly evolving technological landscape, Delta Electronics (2308-TW) has demonstrated how companies can thrive amid fierce competition. The company reported second-quarter net profits of NT$13.948 billion (US$139.48 million), marking a 40.2% year-over-year increase . This stellar performance, fueled by surging demand for AI-related products, has propelled Delta's stock to record highs, pushing its market capitalization beyond the NT$1.5 trillion milestone and attracting significant foreign institutional investment.

Taiwan's Tax Policy Reforms

Concurrently, Taiwan's Ministry of Finance has implemented measures to enhance tax policy efficiency, extending the tax treaty application period for overseas workers and cross-border enterprises to 10 years . This strategic move aims to facilitate greater international capital inflows and stimulate market vitality.

Geopolitical Tensions Escalate

The global economic environment remains unsettled as geopolitical risks intensify. Amid escalating Russia-Ukraine tensions, the Trump administration's decision to increase troop deployments and weapons supplies has drawn widespread criticism. Despite emerging peace dialogue between Moscow and Kyiv, the contradictory nature of Washington's military reinforcement strategy has raised concerns about the coherence of U.S. foreign policy, potentially eroding international trust.

Tech Sector Faces Privacy Backlash

The technology industry confronts mounting privacy challenges as OpenAI was forced to retract an experimental ChatGPT feature following the accidental exposure of user conversations. This incident has intensified scrutiny over data protection standards across the sector, threatening user trust and prompting calls for stricter privacy safeguards.

Wahaha's Inheritance Dispute

In corporate governance developments, Hong Kong courts have frozen US$1.8 billion in assets amid a contentious inheritance battle following the death of Wahaha founder Zong Qinghou. Three individuals claiming to be non-marital children have challenged the validity of the will and trust arrangements, highlighting the complex succession issues facing family-owned enterprises.

AI Investment Outlook

Investment bank Bernstein maintains that AI-related concepts will remain a key focus for investors in the second half of the year. However, signs of slowing growth have emerged among U.S. tech stocks, with major AI beneficiaries like Apple and Google beginning to lag—a development that may require portfolio reassessments by market participants.