AI Stocks Propel Taiwan Shares to Record High as Taiwan Dollar Returns to NT$31.3 Level

TSMC is the most heavily weighted company in Taiwan’s stock market and the global leader in advanced semiconductor foundry services, making its share-price moves a key driver of the benchmark index and the total market value of listed companies. As generative AI fuels demand for high-end chips, investors remain bullish on TSMC’s advanced process and packaging businesses, which have become a major pillar of the technology-stock rally.

On July 20, 2026, a sharp rise in TSMC’s U.S.-listed American depositary receipts helped its Taipei shares break above NT$2,500 for the first time in intraday trading, pushing the Taiwan Stock Exchange Weighted Index and the market capitalization of listed companies to record highs. Analysts said AI investment momentum remained strong, but cautioned that investors should watch for volatility at elevated levels and shifts in international capital flows.

TSMC (2330) is the largest stock by weighting in Taiwan’s equity market and a critical supplier of advanced manufacturing processes for global AI chips, giving its shares significant influence over the broader index. Its ADRs have long traded at a premium to its Taipei-listed shares because they are easier for foreign investors to trade and are included in indexes. The narrowing gap suggests domestic investors, including retail buyers and local investment trusts, are gaining pricing influence. It also reflects stronger market confidence in revenue growth across the AI supply chain.

Bloomberg data showed TSMC’s average ADR premium fell to 13.7% in May 2026 from 26% in December 2025, marking a fifth consecutive monthly decline and a two-year low. On June 2, TSMC rose NT$25 to a record close of NT$2,380, pushing Taiwan’s benchmark stock index to a record close of 45,557.31. Its Taipei-listed shares have gained more than 50% this year, outpacing the ADRs’ nearly 40% advance.

The AI data-center construction boom continues to lift demand for high-performance chips, server power supplies and advanced manufacturing processes, making Taiwan's supply chain a magnet for investment because it spans chip design, foundry services and power management. MediaTek is moving into chip design for Google's TPUs, Delta Electronics has built a strong position in AI server power supplies, and TSMC is benefiting as major AI customers increase orders.

Taiwan shares jumped more than 1,200 points at one stage in early trading on July 20, reaching a record 44,750. MediaTek and Delta Electronics both hit their daily limit-up levels, while TSMC rose NT$55 intraday. Broad gains among AI chip and server supply-chain companies were the main force driving the benchmark index above its previous high.

Taiwan’s benchmark stock index has continued to climb on enthusiasm over AI investment, with heavyweight shares including TSMC and Delta Electronics providing the main momentum. Gains have spread to printed circuit board and passive-component stocks, showing capital flowing beyond chip manufacturing into power systems, components and equipment supply chains. The move highlights the AI supply chain’s influence on the market’s capitalization and investor sentiment.

Taiwan stocks jumped 927 points in the latest session to close at 34,700, setting records both intraday and at the close while also establishing several other market highs. TSMC and Delta Electronics led the advance, while printed circuit board and passive-component shares posted strong gains. However, the available event data did not provide the exact trading date, turnover or closing prices of individual heavyweight shares.