Business · Markets · 2 hrs ago
Taiwan stocks outperform South Korea as AI supply chain supports growth
Taiwan’s stock market recovered faster than major markets after a global downturn in June and July, according to Shinhan Securities.
From Aug.
1 to Oct.
19, Taiwan’s main index rose about 5%, while South Korea’s Kospi fell about 9%.
The analysis says Taiwan benefits from a broad AI supply chain, including chip manufacturing, advanced packaging, materials, networking and servers.
As AI systems expand beyond individual chips to larger, integrated systems, these capabilities have become more important.
The report says South Korea, China and Japan are more concentrated in particular areas, including memory and power equipment in South Korea.
Shinhan Securities expects Taiwan’s earnings growth cycle could last until 2028, depending on continued investment in AI infrastructure.
Taiwan’s stock market gained about 5% from August 1 to October 19, while South Korea’s KOSPI fell about 9%, according to a Shinhan Investment & Securities analysis.
The report said Taiwan’s faster recovery after global market corrections in June and July reflected its broad role in the artificial intelligence supply chain.
Taiwan’s AI-related industries span foundries, advanced packaging, high-performance substrates and materials, networking, and servers.
The report said South Korea, China, and Japan are more concentrated in particular areas of the supply chain.
It forecast that the earnings leverage cycle for Taiwanese companies could continue until 2028.
- Who
- Taiwan’s stock market outperformed South Korea’s, according to a Shinhan Investment & Securities report.
- What
- Taiwan’s market gained about 5%, while South Korea’s KOSPI fell about 9% over the period analyzed.
- When
- From August 1 to October 19. The report was published on October 21, 2026.
- Where
- Taiwan and South Korea.
- Why
- The report attributed Taiwan’s performance to its broad position across the AI supply chain and the resulting earnings growth cycle.
This story does not have two clearly opposing sides.
Global market corrections took place.
Taiwan’s Taiex gained about 5%, while South Korea’s KOSPI fell about 9%.
Shinhan Investment & Securities published its report on the implications of Taiwan’s stock-market strength.
- Taiwan market return
- About 5% from August 1 to October 19
- South Korea KOSPI return
- About -9% from August 1 to October 19
- Report publisher
- Shinhan Investment & Securities
- Taiwan AI supply chain
- Foundries, advanced packaging, substrates and materials, networking, and servers
- Earnings-cycle forecast
- Could extend to 2028
What people are saying
The difference is due not simply to a recovery in the semiconductor industry, but to Taiwan’s unique position in the value chain amid a paradigm shift in global AI infrastructure investment and to differences in earnings growth cycles.
The structural strengths of Taiwanese companies support the persistence of the earnings growth cycle.