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AI chip boom lifts Taiwan and South Korea ETFs in 2026

The Taiwan-focused iShares MSCI Taiwan ETF has returned near 50% in 2026, helped by Taiwan Semiconductor’s roughly 22% weighting and TSMC’s upgraded 2026 growth outlook.

Reported · Written up by our desk · Previews

MarketBeat Ratings points to a sharp outperformance from parts of Asia in 2026, with AI-linked gains driving both Taiwan and South Korea stocks higher while the S&P 500 is nearer 10% total return for the year after rebounding from a late March drawdown.

For Taiwan exposure, the outlet highlights the iShares MSCI Taiwan ETF, EWT, noting a return near 50% in 2026. EWT’s biggest position is Taiwan Semiconductor Manufacturing, with a weighting near 22%, and the report ties much of EWT’s performance to TSMC’s roughly 50% rise in 2026.

MarketBeat Ratings also links the ETF strength to company fundamentals and forward expectations. It says TSMC has posted a fifth consecutive quarter of record revenue and profits, increased its 2026 growth guidance from more than 30% to more than 40% in U.S. dollar terms, and raised capital expenditure guidance.

The outlet further cites TSMC’s announced investment plans, including an additional $100 billion investment in Arizona, bringing its total commitment in the state to $265 billion. MarketBeat Ratings adds that MediaTek is also among the top Taiwanese holdings in EWT, with MediaTek up about 140% in 2026 and described as having played a role in developing Alphabet tensor processing units, according to the report.

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