1 week ago
Taiwan Stocks Surge 85% on AI Chip Boom
Taiwan’s main stock market index has risen sharply because investors are buying technology and chip companies.
These companies are benefiting from huge spending on artificial intelligence equipment.
Taiwan Semiconductor Manufacturing Company is especially important because it makes up more than 40% of the index.
Some other companies, such as King Slide Works and MediaTek, also gained a lot.
Traditional businesses like plastics and textiles did not rise as much.
The index has gained about 85% since August 2025, according to one analyst.
However, investors are now worried that AI companies may be too expensive.
These concerns have caused the market to fall from its June peak and become more volatile.
Taiwan’s TAIEX has risen roughly 85% from August 2025 to about 44,800.
The rally has been led by chip and AI-related companies, especially TSMC.
Taiwan Semiconductor Manufacturing Company accounts for more than 40% of the index’s market value.
King Slide Works, MediaTek, and ASE Technology Holding were among the strongest performers.
The index has become volatile as investors question AI valuations and sustainable investment returns.
- Who
- Taiwanese equities, chip companies, foreign investors, and technology companies involved in AI infrastructure.
- What
- The TAIEX has surged roughly 85% in one year, driven mainly by semiconductor and AI-related stocks.
- Where
- Taiwan’s stock market, with comparisons to South Korea’s KOSPI.
- When
- The rise was measured from August 2025 to the article’s stated current level, while the index had gained 54.55% year-to-date in 2026.
- Why
- Aggressive global technology spending on AI infrastructure has increased demand for chips and related equipment.
Bullish case
Risk concerns
AI-driven earnings
Bullish case
Analysts cited strong AI infrastructure demand, earnings upgrades, foreign inflows, and gains across advanced packaging, ASIC, power, and memory companies.
Risk concerns
Investors question whether hyperscalers’ massive AI investments will produce sustainable returns.
Market outlook
Bullish case
The overall TAIEX trend remains bullish, with resistance levels extending toward 45,800.
Risk concerns
The index has already fallen about 7.2% from its June peak and experienced its biggest single-day point decline on record in July.
Market breadth
Bullish case
Several technology-related companies, including King Slide Works, MediaTek, Delta Electronics, and ASE Technology Holding, posted substantial gains.
Risk concerns
The rally is concentrated in a small group of chipmakers, while Foxconn, plastics, textiles, and traditional manufacturing stocks lagged.
Key facts
- TAIEX level
- About 44,800, according to analyst Nitant Darekar.
- One-year gain
- Roughly 85% from August 2025 to the stated current level.
- 2026 gain
- The article reports a 54.55% year-to-date increase.
- Largest index weight
- Taiwan Semiconductor Manufacturing Company represents more than 40% of the market value.
- Foreign withdrawals
- Foreign investors pulled $22.95 billion from Taiwanese equities in July.
- Recent decline
- The TAIEX retreated about 7.2% from its June peak.
- Technical levels
- Resistance was identified at 45,400, 45,650, and 45,800; support was placed at 44,800, 44,500, and 44,200.
Sources
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