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Taiwan’s TAIEX surges, reverses after foreign outflows

The index is down about 7.2% from its June peak after July saw foreign investors pull $22.95 billion from Taiwanese equities.

Reported · Written up by our desk · Asia

Taiwan’s TAIEX has jumped in 2026, helped largely by chip stocks tied to AI infrastructure buildouts. LiveMint Markets reports the benchmark is up 54.55% in 2026 and moved closer to reclaiming the lead in Asia from South Korea’s KOSPI, with the semiconductor heavyweights driving most of the gains.

The rally has been propelled by Taiwan Semiconductor Manufacturing Co., which has gained more than 50% year to date, while TSMC’s large weighting in the index is central to the momentum. LiveMint Markets also pointed to strength spreading into advanced packaging, ASICs, and power, with MediaTek up about 207% and other gainers including Delta Electronics, ASE, King Slide, and various PCB and memory names.

Despite the broad 2026 surge, recent weeks have turned volatile as investors question whether current valuations for AI spending will translate into sustained returns. LiveMint Markets said the TAIEX retreated around 7.2% from its June peak and that July brought the biggest single day point decline on record during the month.

Foreign flows have also shifted, with LiveMint Markets reporting that foreign investors withdrew $22.95 billion from Taiwanese equities in July. The outlet noted that when a small group of chipmakers drives an outsized portion of market gains, reassessments of spending, margins, or competition can translate into sharper capital outflows and volatility.

The article also highlighted how concentrated the run has been, saying the index climbed from roughly 24,000 in August 2025 to about 44,800, roughly an 85% gain, and that TSMC alone accounts for more than 40% of market value and is up about 126% over the year. LiveMint Markets added that in contrast, Foxconn lagged near 35% and some plastics and textile counters trailed.

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