Taiwan's tech companies are making record profits from AI demand, good news for investors and for the government's tax take, though it also means much bigger tax bills for companies and people.

• Listed Taiwanese companies earned about NT$3.6 trillion in the first half, and full-year profit could reach NT$8 trillion.
• Six chip and packaging firms — TSMC, ASE, Powertech, King Yuan, Sigurd and Tong Hsing's peers among them — are set to spend heavily on new capacity next year, with TSMC's budget rising toward $85 billion.
• Profits are unusually broad: 183 listed firms earned more than their entire share capital in six months, and even the 100th-ranked company posted strong earnings per share.
• Taiwan's stock market is now the world's fourth largest by value, and Nvidia's strong results pushed local tech and capacitor shares sharply higher.
• A fire at Vanguard's Taoyuan wafer plant was put out with no injuries and no major hit to production.

Outlook: Higher profits should keep feeding capital spending and share prices, but income and corporate tax bills are set to jump sharply this year and next.