Taiwan Shares Surge More Than 1,000 Points to Record as AI Chip and Server Suppliers Rally

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.

MediaTek is a major semiconductor heavyweight in Taiwan. In recent years, it has expanded beyond mobile chips into artificial intelligence application-specific integrated circuits, or ASICs. Growing optimism over the business has lifted MediaTek’s valuation and, given its index weighting, helped drive the Taiwan Stock Exchange Capitalization Weighted Stock Index higher.

On July 20, 2026, MediaTek shares gapped up to hit the daily limit, reaching a record NT$3,155 apiece. Gains in MediaTek and other heavyweight stocks pushed the benchmark index up 179 points to close at 40,885, setting another all-time high.

TSMC’s advanced manufacturing technology and global demand for AI chips have made it the main force behind Taiwan’s stock market rally past 40,000 points. The Financial Supervisory Commission is also advancing the “TSMC clause,” which eases limits on ETFs’ holdings of a single stock. The change reduces regulatory obstacles for funds tracking large index heavyweights, making passive inflows an important source of market support.

TSMC shares recently reached a record high and are moving toward NT$2,330 apiece, helping the weighted index break above 40,000 points. The impact of ETF portfolio adjustments continues to build. The market will look to corporate fundamentals and earnings data due in May to gauge whether the rally fueled by AI enthusiasm and passive buying can continue.

Taiwan’s latest bull run has been led by TSMC and supply chains serving AI servers, advanced processes and components, reflecting how global AI infrastructure spending is translating into orders for Taiwanese manufacturers. The research team at the KGI Taiwan Select Five Fund expects AI applications to expand into smart factories and autonomous vehicles over the next 4 to 5 years. It sees inference-computing demand as a key driver of technology-sector growth, bringing TISA funds into focus.

Taiwan stocks rose 723.75 points intraday on April 15, 2026, reaching a high of 37,019.87 and crossing 37,000 for the first time. TSMC also set an intraday record of NT$2,095 per share. Eleven domestic equity funds with TISA share classes posted record net asset values, with seven returning more than 50% since the start of the year. By April 16, the combined market capitalization of listed and over-the-counter companies had reached $4.14 trillion, or more than NT$130 trillion.

Taiwan’s latest equity rally has been led by artificial intelligence server and semiconductor stocks. Taiwan Semiconductor Manufacturing Co. (TSMC), the market’s largest constituent by capitalization, has an outsized influence on the benchmark index. Foreign investors’ purchases of Taiwanese shares and accompanying capital inflows also support the Taiwan dollar. The simultaneous gains in stocks and the currency reflect international investors’ confidence in Taiwan’s technology supply chain.

AI stocks rebounded on the 25th, while a sharp rise in TSMC shares drove the benchmark index above 35,000 points to an all-time high. Foreign capital poured in at the same time, pushing the Taiwan dollar up by about NT$0.15 against the U.S. dollar intraday. It closed NT$0.121 stronger at NT$31.34 per U.S. dollar, returning to the NT$31.3 level and reaching a nearly one-month 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.