Taiwan

Intelligence for Better Decision Making

AI-Driven Semiconductor Boom Fuels Market Gains and Industry Expansion
Nov. 27, 2025 | Technology & Innovation

Strong AI chip demand is boosting performance across semiconductor suppliers and related markets.

**Taiwan’s manufacturing confidence index climbed to 91.37 in October 2025, marking its fourth straight monthly increase as robust global demand for artificial intelligence, high-performance computing, and advanced semiconductors drove activity.**
Electronics and machinery equipment firms reported high capacity utilization, rising orders for chip packaging and testing services, and stable six-month outlooks despite modest month-on-month gains. In contrast, traditional non-AI sectors—automotive components, industrial control systems, and petrochemicals—fell behind, with about 40% of petrochemical companies pessimistic due to price pressure, oversupply, and downstream maintenance shutdowns.

**Demand for printed circuit boards, especially copper-clad laminates, has surged as AI servers require higher specifications and more layers.**
Mainboard layer counts in AI servers expanded from 10–14 to 18–26, driving a substantial rise in PCB and CCL consumption. Hsinchong’s chairman reported that AI applications have boosted PCB usage fiftyfold, underscoring CCL’s vital role in supporting complex signal integrity and thermal management for high-performance computing.

**The advanced ball grid array substrate market—critical for AI GPUs, data-center CPUs, and high-speed networking ASICs—has entered a new growth phase fueled by three cycles: 5G adoption since 2018, the pandemic-driven GPU surge, and the AI explosion beginning in 2023.**
ABF substrates demand more complex manufacturing processes and thermal controls than BT substrates. By 2025, Japan’s Ibiden and Shinko and Taiwan’s Hsinchong—NVIDIA’s sole ABF supplier for its next-generation B100, B200, and GB200 GPUs—dominate the high-end segment. Short-term shipping delays from glass fiber cloth and CCL shortages should ease by Q3 2026, restoring capacity utilization, margins, and market shares for leading producers.

**Memory module production is rising alongside AI growth, and DRAM and SSD controller IC packaging on BT substrates is surging.**
Nande, which earns about 70% of its revenue from BT substrates, stands to benefit significantly from increased memory demand and advanced packaging requirements, reinforcing gains alongside ABF suppliers.

**On November 26, 2025, Taiwan’s stock market reflected this AI-driven momentum.**
The weighted index rose 1.58% to 27,336.44 points by mid-morning, led by limit-up gains in MediaTek (2454) and 波若威 (3163) on news of Meta’s planned AI chip purchases from Google and advances in silicon photonics. AI-related stocks 訊芯-KY (6451) and 信驊 (5274) climbed over 5%. Server and data-center equipment firms, including 緯穎 (6669) and chassis maker Ying Guang (6117), also reported strong demand forecasts, projecting double-digit revenue growth into 2026.

**Although Hsinchong, Nande, and Jing Shuo saw short-term stock declines on November 19—pushing the ABF sector down more than 5% toward its quarterly moving average—institutional investors remain optimistic about long-term structural growth.**
They point to the early stage of the ABF “big three” growth cycle, easing supply constraints, and rising AI chip complexity as foundations for accelerating substrate demand and sustained market expansion.
Taiwan Stock Market Rallies on Tech Gains, Defense Boost, and AI Momentum
Nov. 27, 2025 | Financial System

Taiwan’s stock market rallied on November 26, 2025, driven by strong performances in technology and defense sectors.

**The Taiex opened 364 points higher at 27,276, a 1.36% gain fueled by electronic heavyweight stocks.**
TSMC climbed 0.7% to NT$1,425, Hon Hai added 1.36% to NT$222, and MediaTek surged 8.01% to NT$1,280. At the same time, military industry names such as Thunder Tiger, Asia Air, and Zhongguang Electric hit daily price limits as the government moved to coordinate a national drone team.

**Growing expectations of a Federal Reserve rate cut in December bolstered US equities and helped Taiwan’s index rebound above key moving averages.**
TSMC led sector gains, particularly in AI-related segments tied to Google’s Gemini 3, which benefited suppliers including MediaTek, Taiguang Electric, and Kingpak Electric. Despite recent competitive pressures and project delays, renewed speculation around AI hardware orders lifted investor sentiment for MediaTek.

**MediaTek quickly reached its daily limit-up price of NT$1,300 after the open, and trading volume exceeded the previous day’s total.**
Institutional investors treated the rally as a buy-the-dip opportunity amid a broader Taiwan market advance and solid closes for US tech stocks. The company issued Q4 revenue guidance of NT$142.1 billion to NT$150.1 billion—flat to moderately up quarter-on-quarter—and emphasized ongoing investments in AI, edge computing, and high-end mobile chip development. MediaTek also extended its 23-year track record of having semiconductor and AI research papers accepted at major conferences, including ISSCC 2026, NeurIPS, and CVPR, and its CEO, Cai Lixing, will deliver a keynote on AI-driven semiconductor innovations.

**Meanwhile, US foreign institutional investors cut their 2026 and 2027 EPS forecasts for MediaTek by 4%, citing smartphone market competition, rising costs, and delays in data-center ASIC projects.**
They downgraded the target price from NT$1,300 to NT$1,260 and kept a neutral rating, while noting potential upside from AI PC, edge AI, and high-end mobile chip segments if fundamentals stabilize and foreign selling pressure eases.

**Defense stocks surged after Taiwan’s Vice President proposed an additional US$40 billion defense budget focused on asymmetric warfare capabilities with US support, and President Lai Ching-te emphasized raising defense spending to 3.3% of GDP next year.**
Leihu, Hanxiang, and Yahang all reached limit-up prices, China Shipbuilding jumped 9%, and Evergreen Aerospace climbed over 7%.

**TSMC filed a lawsuit in the Intellectual Property and Commercial Court against former senior vice president Luo Wei-jen for allegedly leaking trade secrets on advanced 2 nm and 1.4 nm processes to Intel.**
The complaint cites breaches of employment contracts, non-compete agreements, and the Trade Secrets Act. Prosecutors have opened an investigation, and the Ministry of Economic Affairs is monitoring potential national security implications. TSMC’s stock nonetheless rose NT$15 intraday to settle at NT$1,430.

**Market analysts pointed to short-term trading volatility amid easing US-China tensions and strong demand in AI and memory sectors, citing a rebound pattern for Taiwan stocks.**
Alphabet’s record-high share price and raised Wall Street targets for Google underpinned Taiwanese AI hardware suppliers, while Dell’s upgraded full-year guidance on AI server demand benefited Inventec. In contrast, Compal showed weaker performance, and Delta Electronics saw only a modest recovery with limited upside.

Monitored Intelligence for Taiwan - Nov. 28, 2025


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北京2027武統台灣?貼文悄改「這3字」被抓包 她嗆:死不認錯

Beijing's 2027 Military Unification of Taiwan? Post Silently Changes These 3 Words and Gets Caught, She Snaps Back Refusing to Admit Mistake

The China Post | Local Language | News | Nov. 28, 2025 | Geopolitical Conflict and Disputes

President Lai Ching-te stated on November 26 that Beijing is targeting 2027 to prepare for an attack on Taiwan, prompting some media to report that China would invade Taiwan in 2027. However, the Presidential Office spokesperson Guo Ya-hui dismissed these reports as a "wrong and one-sided interpretation." Subsequently, Lai’s Facebook post was found to have quietly changed three characters, altering the phrase from "aiming to forcibly unify Taiwan" to "aiming to complete the preparations to forcibly unify Taiwan."

KMT legislator Wang Hongwei harshly criticized Lai for refusing to admit the alteration, calling such conduct unworthy of the presidency. Wang highlighted that Lai announced a significant national defense budget of 1.25 trillion from 2026 to 2033 while bluntly stating China's goal to complete forcible unification by 2027. Wang warned that such comments could damage Taiwan's international economic cooperation, investment, tourism, and heavily pressure the armed forces.

Wang also pointed out that the change to Lai’s wording only came after media scrutiny and public outcry, with the Presidential Office attempting to minimize the issue by labeling earlier reports as one-sided. Despite verbal denials of fault, the alteration on official platforms suggested recognition of the seriousness of the remarks. Wang condemned the president’s alleged rumor-spreading as irresponsible, potentially sacrificing public security for political purposes, and criticized the office’s deflection of responsibility onto the media.

11月消費者信心指數景氣指標創半年最高 學者提醒三大變數

November Consumer Confidence Index and Economic Indicators Reach Six-Month High; Scholars Highlight Three Major Variables

United Daily News | Local Language | News | Nov. 28, 2025 | UndeterminedEconomic Growth

Central University's Taiwan Economic Development Research Center reported the November Consumer Confidence Index (CCI) at 64.65 points, a 0.69-point increase from October, marking a six-month high for five out of six key indicators. The five rising indicators include price levels, household economic conditions, domestic economic climate, job opportunities, and purchase of durable goods, with the latter showing the largest increase. However, consumer confidence in the timing to invest in stocks dropped to a five-month low at 27.02 points.

Executive director Wu Da-ren noted that strong export performance has boosted economic condition indicators and housing market confidence, which has rebounded for the first time since March. Despite rising economic indicators, the stock investment sentiment declined due to a significant recent stock market rally prompting profit-taking. Vehicle sales have recovered following tariff impacts, and recent central bank policy easing has increased bank lending capacity for home loans, contributing to improved housing market optimism.

Wu highlighted three major uncertainties for future economic trends: the impact of reciprocal tariffs between the U.S. and Taiwan, especially regarding Taiwanese investment flowing into the U.S. which could crowd out domestic private investment; the unclear effects of semiconductor tariffs on smaller Taiwanese supply chain companies; and the risk of an AI investment bubble triggered by recent losses incurred by major AI firms like OpenAI, whose uncertain profitability raises concerns about the sustainability of AI-driven economic growth in Taiwan.

大陸開源AI 下載量首超車美國

Mainland China's Open-Source AI Downloads Surpass the United States for the First Time

United Daily News | Local Language | News | Nov. 28, 2025 | UndeterminedTech Development/Adoption

Mainland China has overtaken the United States in the global market for open-source artificial intelligence (AI) models for the first time. Research by MIT and Hugging Face reveals that downloads of open AI models developed in mainland China now account for 17 percent of the global total, surpassing the 15.8 percent share held by U.S. developers. This growth is largely driven by Chinese companies such as DeepSeek and Alibaba’s Tongyi Qianwen.

Open models, which allow developers to freely download, modify, and integrate AI technologies, are seen as crucial for fostering innovation among startups and researchers. Mainland China's focus on open-source AI contrasts with the closed and proprietary strategies of leading U.S. tech firms like OpenAI, Google, and Anthropic, which control access to their advanced AI systems and monetize them through subscriptions and enterprise services.

Chinese companies have shifted toward open models, partly due to restrictions on advanced AI chip supplies from Nvidia and governmental encouragement. Analysts note that open source is more mainstream in China, whereas U.S. companies prioritize high valuations and keeping key technologies proprietary. The U.S. government, under the Trump administration’s AI Action Plan, has promoted open-model development reflecting "American values," but leading firms still limit openness. OpenAI’s recent release of open weight models is only partial, lacking full code and training data, while Meta is focusing more on closed AI models to compete in the race for superintelligence.

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