00:00Taiwan's stock market is booming.
00:02The Tayac's top 4 trillion U.S. dollars in April surpassed in the U.K. to become the
00:07world's seventh largest stock market by capitalization.
00:10But what's behind the growth?
00:12The quick answer is AI.
00:14Most of the critical hardware the Ryzen industry runs on is made in Taiwan.
00:19NVIDIA won't be possible without Taiwan.
00:22And there's magic in this island.
00:25The companies here have extraordinary technology.
00:30This is especially true for TSMC, the world's largest chip maker.
00:35The company accounts for over 40% of the Tayac's influence in broader market movement.
00:40In the company's Q1 results, it reported a gross margin of over 60% driven by robust demand,
00:47especially from growing AI investment by cloud service providers like Google, Amazon, and
00:52Microsoft.
01:07This spending boom is being felt across the sector's supply chain, with other companies
01:13providing hardware like chips and service seeing their market value rise.
01:17Taiwan's technology industry is also very powerful, so we used PC and NBs.
01:23We used to have AI supply chain in the past few years.
01:25We used to have AI supply chain in the past few years.
01:27We used to have the supply chain in the past few years.
01:31This shift can be seen in the broader market.
01:34In the Tayac's top 10 companies by market cap, eight are now tech firms in the AI supply chain, such
01:41as Delta Electronics, MediaTek, and Foxconn.
01:44Each with a market value exceeding US$100 billion.
01:48It's a major shift from a decade ago, when financial stocks dominated.
02:05The Tayac is largely driven by foreign institutional investors, who are heavily concentrated in semiconductor stocks and hold around 70
02:13% of TSMC's shares.
02:14Both of these factors greatly impact Taiwan's stock market performance.
02:19Domestic retail investors are also getting in on the hype, pushing trade-in value to a record high of around
02:25US$570 billion in March.
02:28Popular local ETFs that skew towards TSMC and other tech stocks have also contributed to the Tayac's recent highs.
02:48The CheckGPT boom was just the start.
02:51In 2024, the Tayac's reached 20,000 points.
02:54It took nearly two years to gain its next 10,000, hitting 30,000 in January 2026.
03:00But just three months later, in April, it crossed 40,000.
03:05Record high demand for Taiwan's tech products plus strong appetite for leading tech stocks drove the latest gains.
03:12However, experts note the underlying reality of Taiwan's stock market amid its boom.
03:28While there's huge demand for Taiwan's tech products, there may not be enough capacity to meet it.
03:33Manufacturing is extremely energy intensive and Taiwan's power supply relies heavily on imported fuel.
03:40Market watchers say this will become a bigger problem down the road.
03:43Despite these concerns, the Tayac's stellar performance reflects solely investor confidence in the country's technological prowess.
04:12Taiwan is easing investment limits, raising the single stock cap for local equity funds and actively manage ETFs by 15
04:19percentage points.
04:20This will let them invest more heavily in major stocks like TSMC, further boosting investor interest in these companies and
04:28possibly driving up the Tayacs even more.
04:30Client won an IT in Taipei for Taiwan Plus.
04:34Thank you very much.
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