Taiwan's export orders contracted 10.91 per cent in June from a year earlier, the smallest decline since October, as demand from global markets improved, the Economics Ministry said Thursday.

Compared with the 20.14-per-cent year-on-year contraction in May, the pace of decline in June showed signs of a gradual recovery of the global economy, the ministry said.

Taiwan, the world's second-largest computer chip maker, on Tuesday unveiled guidelines for upgrading its chip industry by offering incentives to chip makers that win foreign technology transfers.

The Taipei County government said Monday it would fine the McDonald's and Domino's Pizza for high arsenic levels in their frying oil.

In a random test of seven fast-food restaurant, inspectors found two McDonald's outlets and one Domino's Pizza store failed to meet Taiwan's safety requirements for frying oil.

Taiwan's stocks slumped 3.53 per cent Monday to its biggest daily drop in three months on concerns that Taiwan might not be able to sign a trade pact with China at the end of this year, dealers said.

The TAIEX index closed at 6,530.82 points, down 239.04 points or 3.53 per cent.

A top US envoy to Taiwan Friday said Washington will continue its arms sales policy towards Taiwan, despite China's objection.

"We do not consult with Beijing on our security cooperation and arms decisions involving Taiwan," said Stephen Young, director of American Institute in Taiwan, the de facto US embassy on the island, in a news conference.

Taiwan's May export orders fell by 20 per cent as global financial crisis continued to crimp demand, the Economics Ministry said Tuesday.

But the pace of decline in export orders eased during the month, partly fueling hopes of recovery expected by the government in the fourth quarter, the ministry said.

Taiwan and China will launch a cross-strait swim to promote sports exchanges and understanding between the two sides, a sports official said Saturday.

A Taiwan woman has been indicted for making 11,551 phone calls to another woman whom she suspected was trying to seduce her boyfriend, the online newspaper Nownews. com said Tuesday.

A prosecutor in Yunlin County, west Taiwan, sought 14 months' jail for the woman, identified only by her surname Huang, on charges of disrupting social order.