Taipei, Sep 28: Taiwan’s stock market remains closely linked to developments in the semiconductor industry, with Taiwan Semiconductor Manufacturing Company (TSMC) continuing to be a major driver of market sentiment as the chipmaker expands its investment footprint in the United States.
The Taiwan Ministry of Economic Affairs has approved $44 billion in TSMC investments in the United States since December 2020, as the company advances its large-scale expansion in Arizona. The approvals cover investments in TSMC’s US subsidiary and form part of the company’s broader plans to increase semiconductor manufacturing and advanced packaging capacity in the country.
The latest development comes at a time when Taiwan equities have been supported by strong demand for semiconductor and artificial intelligence-related stocks. The benchmark TAIEX closed at 48,024.60 points on September 24, after briefly crossing the 48,000 level and reaching a series of record highs earlier in the week.
TSMC has a particularly strong influence on Taiwan’s market because of its large market value. During recent sessions, movements in the chipmaker’s shares have had a significant impact on the TAIEX. On September 23, for instance, TSMC gained 1.63 per cent to NT$2,500 and contributed about 320 points to the index’s advance.
AI Demand Supports Semiconductor Stocks
The strength in Taiwan’s technology stocks has been closely associated with growing global demand for chips used in artificial intelligence, data centres, high-performance computing and advanced electronics.
Taiwan’s semiconductor companies have benefited from this increase in demand, with TSMC at the centre of the island’s technology supply chain. The company accounts for more than 40 per cent of Taiwan’s total stock-market value, making its performance an important factor for the broader benchmark.
Other technology companies have also participated in the market’s recent gains. MediaTek, memory-chip manufacturers and firms involved in chip packaging, electronics manufacturing and AI servers have attracted investor attention as demand across the technology supply chain remains strong.
$44 Billion Already Approved
The $44 billion figure represents investments approved by Taiwan authorities since 2020 rather than a single new investment announcement. The approvals include several funding rounds, with the latest major approval involving $20 billion in July 2026 for TSMC’s Arizona operations.
TSMC has announced an overall $165 billion investment plan for Arizona, including six advanced wafer fabrication plants, two advanced packaging facilities and a research and development centre. The company is also continuing to invest heavily in its Taiwan operations.
According to Taiwan’s Economics Ministry, TSMC continues to maintain a substantial manufacturing and technology base in Taiwan, with advanced fabs and additional facilities being developed across locations including Hsinchu, Taichung, Chiayi, Tainan and Kaohsiung.
What It Means for Taiwan’s Stock Market
The expansion highlights the changing structure of the global semiconductor industry, where companies are increasing production capacity across multiple regions while maintaining advanced technology ecosystems in their home markets.
For Taiwan’s equity market, semiconductor demand remains a key market driver. The TAIEX had risen strongly through September, moving from 45,511.49 points on September 15 to 48,024.60 points on September 24, according to Taiwan Stock Exchange data.
At the same time, investors continue to monitor global technology markets, interest rates, AI-related spending and developments in the semiconductor supply chain. These factors are likely to remain important for Taiwan equities as the market enters the final months of 2026.
The latest TSMC investment approvals therefore carry significance beyond the company itself, reflecting Taiwan’s continued role in the global semiconductor industry while also highlighting the growing internationalisation of its leading chipmaker.
