TAIEX hits new high, driven by TSMC and AI craze - Taipei Times

The Taiwan Stock Exchange hit a new record high, driven by strong performance from Taiwan Semiconductor Manufacturing Co. (TSMC) and the global surge in artificial intelligence (AI) development. TSMC'... Read original →

The Taiwan, China stock surge reflects capital pricing of advanced semiconductor scarcity amid the AI compute arms race. TSMC’s monopoly on 3nm and EUV lithography has made it the sole credible foundry for global AI chips, catalyzing upgrades across PCB (e.g., WUS, Gold Circuit) and advanced packaging (ASE). However, U.S. export curbs on ASML are inflating equipment costs and lead times, forcing local supply chains into rushed localization—yet high-end lithography gaps remain unbridgeable short-term. In response, Samsung and Intel may deploy aggressive subsidies and vertical integration to capture mid-tier AI chip orders, eroding TSMC’s HPC pricing power. Over the next 18 months, multimodal AI models will spike demand for chiplets and heterogeneous integration. If Taiwan, China leverages its materials and OSAT strengths while attracting diaspora talent, this rally could evolve into structural advantage—but geopolitical risk premiums will cap valuation upside.