Taiwan Fund Monthly Insights - January, 2026

Taiwan equity markets had a strong start to 2026, primarily driven by Taiwan Semiconductor Manufacturing Co., Ltd.’s (“TSMC”) better-than-expected Capital expenditure (“CAPEX”) guidance supporting robust Artificial Intelligence (“AI”) datacenter growth. The TAIEX Total Return Index, (the “Benchmark”) increased by 10.58% in January 2026 in U.S. dollar terms, outperforming regional peers. During the month, the best three performing industry groups were Pharmaceuticals, Biotechnology & Life Sciences, Semiconductors & Semiconductor Equipment and Materials. The three poorest performing industry groups were Real Estate Management & Development, Food, Beverage & Tobacco and Consumer Staples Distribution & Retail. Note that we do not have any holdings in those three industry groups.