Taiwan Fund Monthly Insights - February, 2026

Taiwan's equity market delivered strong performance in February 2026, with the TAIEX Total Return Index (the “Benchmark”) rising 11.37% in U.S. dollar terms, driven by robust Artificial Intelligence (“AI”) and semiconductor demand, broad-based gains across the technology sector and strong foreign institutional inflows of US$5.6 billion amid improving manufacturing PMI (Purchasing Managers' Index) data and export momentum. During the month, the best three performing industry groups were Technology Hardware & Equipment, Semiconductors & Semiconductor Equipment and Health Care Equipment & Services. The poorest performing industry group was Pharmaceuticals, Biotechnology & Life Sciences. Note that we do not have any holdings in this industry group.