Taiwan's stock market has climbed 67% this year, overtaking South Korea for the top spot among major markets — a strong run for anyone holding Taiwanese tech, and a sign of how much AI spending is reshaping the market.

• The index hit a record high as big electronics stocks led the way, lifting Taiwan into the world's four largest markets by value.
• Exports, growth, and company profits are all rising, so the gains rest on real earnings rather than hype alone.
• AI demand is the engine: chip packaging, cooling, memory, optical networking, and high-performance computing are the hot areas, and Taiwan's supply chain sits at the center of it.
• Foreign investors dumped panel makers AU Optronics and Innolux, but local money and state-linked funds bought the dip and pushed both back up.
• Capacitor makers are raising prices a second time this year, with order visibility now stretching into late 2027 as Japanese and Korean rivals pull back.

Outlook: Momentum stays tied to how long global tech giants keep raising AI spending, with short-term swings likely at these record levels.