
Taiwan performs a essential role in the AI chip revolution and the global semiconductor field, the main government of the Taiwan Stock Exchange explained to CNBC in an exclusive interview.
Sherman Lin, chairman and CEO of Taiwan Stock Exchange Corporation attributed the robust gains on the Taiwan Weighted Index to “the AI revolution.”
“It is just simply because [of] the large demand of the high-end chip, and also the server source chain. That’s why our stock market place is likely up,” he said.
The Taiex has risen 27.93% in the final 12 months, but gave up some gains on Friday after most key marketplaces in the area sank amid mounting Center East tensions.
Considerably of Taiwan’s dominance in the worldwide semiconductor sector can be attributed to Taiwan Semiconductor Manufacturing Co, the world’s premier contract chipmaker that makes innovative processors for purchasers like Apple and Nvidia. TSMC is the most important producer of Nvidia’s highly effective AI processors.
“I imagine this is a good deal of attraction for investors … So it means, actually, Taiwan performs [a] pretty crucial purpose in AI offer chain and also the semiconductor sector,” mentioned Lin.
Taiwan’s chip dominance
In 2023, Taiwan led innovative chip producing know-how, such as 16- or 14-nanometer and extra superior procedures, with 68% worldwide capability share, according to TrendForce knowledge. This was followed by the U.S. (12%), South Korea (11%), and China (8%), the info confirmed.
Taiwan also held practically 80% market place share in serious ultraviolet era processes, these kinds of as 7-nanometer and additional state-of-the-art know-how, explained TrendForce. The more compact the nanometer dimension, the much more effective the chip is. EUV instruments are vital in the creation of the world’s most superior processors.
“We have really good fundamentals of ICT industries. So we can have the power to aid, leveraging the accomplishment of the ICT and technological innovation industries, new overall economy business enterprise,” reported Lin.

Quake and geopolitical pitfalls
Before this month, Taiwan was hit by its strongest earthquake in 25 several years. TSMC stated building web pages have been typical on first inspection, although staff from some fabs ended up briefly evacuated. These employees subsequently returned to their workplaces.
“Taiwan exhibits really very good resilience … I understand that some shown organizations that report to the TWSE – they had really tiny effect on their productions,” reported Lin.
“The type of the problem for Taiwan is the tests for our organization continuity strategy. We basically did rather well. And we refreshed, we responded definitely promptly. So you can see in the capital sector, you can see the modified rebound very shortly,” claimed Lin.
“Ideal now, it can be still in the uptrend in the cash current market after the earthquake.”
On the consequence of the U.S. elections and military services conflicts, Lin reported this kind of conditions “will usually influence some cash marketplaces” as well as the Taiwan market place.
“But [as] you can see, it will go again to the fundamentals. So I imagine Taiwan has excellent fundamentals, [has] resilience and [responds] swiftly. I am really confident about our funds marketplaces,” claimed Lin.