Record high for Taiwan's benchmark

Taiwan's Taiex rose to a record intraday high of forty-eight thousand six hundred one point fifty-three on Tuesday, driven by gains in the tech sector following an AI-driven rally on Wall Street.

Three chip giants lead the gains

Shares of TSMC rose zero point forty percent, MediaTek gained seven point eighty-eight percent, and Delta Electronics rose by two point sixty-seven percent. All three are semiconductor industry giants and the largest companies by market capitalization on the Taiex.

Three months since last record

The Taiex intraday high on Tuesday came around three months after it hit a record high in June. Investors have seen overall strong growth in Taiwanese stocks this year thanks to the AI boom.

Tech dominates Taiwan's market

The Taiwan equity market is dominated by the technology sector, which represents about eighty-eight percent of the benchmark market index, and most of this is the semiconductor industry, according to Standard Chartered.

“The Taiwan equity market is dominated by the technology sector, which represents about 88% of the benchmark market index”

Taiwan's critical chip position

Taiwan produces over ninety percent of the world's most advanced semiconductor chips, specifically those measuring seven nanometres and smaller. According to HSBC data in May, Taiwan has overtaken Canada to become the world's sixth-largest stock market.

“Taiwan produces over 90% of the world's most advanced semiconductor chips, specifically those measuring 7 nanometres and smaller”

Export orders data due today

Traders are watching for Taiwan's August export orders due later today. Markets expect the print to remain resilient at sixty-three point zero percent year on year, underscoring sustained AI-related demand, according to UOB.

“Markets expect the print to remain resilient at 63.0% y/y (Jul: 61.9%), underscoring sustained AI-related demand”