Taiwan's stock market surges on AI

Taiwan's benchmark Taiex index is up more than 50% this year, making it the world's best-performing major index after pulling ahead of South Korea's Kospi.

Gains spread across the chip supply chain

The gains extend well beyond Taiwan Semiconductor Manufacturing Co., spanning chip design, advanced packaging, networking, and server companies. About 7% of Taiwan-listed stocks have doubled this year.

Investors prefer public market returns

Anderson Chen, founder of Y Combinator-backed Operon Solutions, said the stock market's returns shaped his fundraising strategy. He chose to raise his startup's seven hundred thousand dollar pre-seed primarily from Silicon Valley investors.

“The market in semiconductors is just too good, and you can get 10X returns from the stock market”

Seed funding deals collapse in Taiwan

Seed and angel rounds made up 38.4% of investment deals by Taiwanese VC firms in 2021. By 2024, their share had fallen to 17.1%, according to Findit, a government-commissioned platform tracking Taiwan's startup ecosystem.

Investors chase later-stage deals instead

Taiwanese investors increasingly favored B- and C-round and pre-IPO companies, where the route to returns was clearer. B- and C-round deals accounted for 29.1% of total investment in 2024.

Founders look overseas for early backing

Operon's Chen said fundraising had become easier for Taiwanese deep-tech startups seeking overseas capital. His startup's seven hundred thousand dollar pre-seed round closed within three days, but he noted it was easier to fundraise abroad…

“It's gotten easier to fundraise in general, but maybe not necessarily in Taiwan”