Taiwan's semiconductor industry and the military implications of a potential cross-strait conflict dominated the aerospace and defense track on the second day of the Plug and Play Silicon Valley May Summit, as investors and defense technology executives described a geopolitical environment that is fundamentally reshaping where capital flows and why.

Nvidia's H200 was a major focus after the Trump-Xi meeting, but hopes for sales into China have faded after US President Donald Trump's latest remarks. Trump said Chinese President Xi Jinping is firmly committed to developing domestic AI chips, leaving little room for common ground on the issue.

SpaceX plans to follow through with its acquisition of Cursor, which provides AI coding tools, 30 days after the space company launches its IPO. The deal, worth US$60 billion, would shore up SpaceX's recently acquired xAI unit, whose Grok models are reportedly considered to be behind those of competitors Anthropic and OpenAI.

Taiwan-based aerospace engine fastener maker National Aerospace Fasteners Corporation (NAFCO) said order visibility has extended to as long as eight to nine years as Boeing accelerates aircraft deliveries and global aerospace supply chains remain under strain. To meet rising demand, the company is expanding production capacity in Malaysia.

Far EasTone Telecommunications held its 2026 shareholders meeting on May 20. They announced that it had achieved year-on-year growth in consolidated revenue and profit in 2025, while signing a cooperation agreement with Amazon Leo, Amazon's low-earth-orbit satellite network service, to introduce LEO connectivity to Taiwan, pending regulatory approvals. Executives said the company will focus on scaling group synergies, expanding service offerings, and amplifying AI benefits to sustain its growth trajectory in 2026.

U-leam said LEO satellites will remain its primary growth engine for the next few years, while quantum computing, medical devices, robotics, and drones will form the company's second wave of expansion. The firm reported full-year 2025 revenue of NT$5.88 billion (US$185.58 million), a 52% gross margin, operating profit of NT$233 million, and earnings per share of NT$4.69. It disclosed that about 90% of current revenue came from a single LEO satellite customer.

South Korea's leading defense contractor, LIG Defense & Aerospace, and the state-backed Agency for Defense Development are accelerating efforts to move quantum defense technologies from labs into operational deployment, as industry players argue that military and public-sector demand will be the key catalyst for commercialization before broader private-sector adoption takes hold.

The global satellite communications industry is accelerating the deployment of next-generation infrastructure, unlocking the commercial potential of low-Earth-orbit (LEO) networks, while speculation that SpaceX could bring forward its initial public offering is adding fresh momentum ahead of the anticipated debut of the Starship V3 launch system.

US defense leaders announced plans to place more military personnel and officials in Ukraine to study drone warfare and battlefield networking so lessons can be folded into US planning and budgets. Defense leadership said the effort aims to capture real-world experience under combat conditions and accelerate the adoption of drone, counter-drone and networking capabilities across the force.