Taiwan’s exchange urges investors to look beyond TSMC and embrace the island’s tech ecosystem

TSMC posted a 40% revenue rise and a 77% profit jump, yet its stock slid 7.3%, triggering the biggest single-day point drop on the TAIEX. Sherman Lin, chair of the Taiwan Stock Exchange Corporation, warns that the market’s heavy reliance on the chipmaker masks a wider “technology island” of fast-moving supply-chain firms from Taipei to Kaohsiung. To diversify investor focus, the exchange introduced the Taiwan Pristine Stock Index and expanded the Taiwan Innovation Board, which now hosts fewer than 30 firms but has seen shares rise 177% this year.

A record 70 IPOs in 2025 raised $3.3 billion, with 40% from AI-related companies, though the total still lags behind Hong Kong and Shanghai. The “Power Up” initiative pushes listed companies to enhance governance and disclose long-term strategies. Lin sees the current AI boom as a timely window to reshape Taiwan’s market profile and attract capital from the U.S., Europe and emerging regions.