Taiwanese stocks are predicted to reach a record high, driven by optimism surrounding artificial intelligence and tariff exemptions for major chip manufacturers. Taiwan Semiconductor Manufacturing Co. (TSMC) shares have surged following the news that they would be exempt from US tariffs, reaching record highs. This exemption is based on TSMC's significant investments in US manufacturing facilities.
TSMC's performance significantly impacts the Taiwan Stock Exchange, given that it constitutes approximately 40% of the index benchmark. The tariff exemption provides relief to Taiwan's export-oriented economy amidst global trade tensions. The national development council of Taiwan anticipates a 3.1% economic growth rate in 2025, supported by an almost 8% increase in Taiwan's technology exports during the second quarter of 2025.
Broader market sentiment is also boosted by positive earnings reports from US tech companies, further fuelling optimism in the technology sector. This, coupled with speculation of potential Federal Reserve rate cuts, adds to the positive outlook for the Taiwanese stock market.
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