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Since December 2025, the Franklin FTSE Taiwan ETF has outperformed global and EM equities by 3-5x while surging by 67%. Taiwan's tech exports which account for over 80% of GDP are growing, but at a slower pace, while Taiwanese GDP in H2 could be lower than H1. TSM's HPC exposure and growing 2nm capabilities are welcome, but rising CAPEX commitments are unlikely to help abet a below average FCF yield.
Foreign investors continued pulling money from Asian equities in July, but the headline outflow masks a striking shift underneath: capital moved away from the region's biggest AI winners while selectively returning to markets with less dependence on the semiconductor boom. Investors sold a net $25.48 billion of shares across seven major Asian markets during the month, extending the region's foreign-selling streak to nine months.
MediaTek , Taiwan's largest chip designer, said on Friday its board had approved a discretionary financing budget of $5 billion to support long-term growth, including its expansion into AI chips for data centers.
Taiwan's ASE Technology Holding , the world's largest chip packaging and testing provider, said on Thursday it would raise this year's capital expenditure by $2 billion to around $10.5 billion, driven by strong demand.
Asian stocks rallied on Wednesday as investors returned to semiconductor shares after a bruising sell-off, taking their cue from a Wall Street rebound even as Brent crude pushed further above $91 a barrel. MSCI's Asia-Pacific gauge outside Japan gained 1.2%, while South Korea's Kospi surged more than 6% and Japan's Nikkei 225 climbed 1.9%.
When it comes to broad international equities exposure, the sum of the parts is traditionally greater than the whole. Today, however, single-country exposure is also proving that individual parts can deliver a whole lot of performance.
Taiwan is the world's most critical semiconductor manufacturing hub.
This story is part of Forbes' coverage of Taiwan's Richest 2026. See the full list here.