AI Boom Fuels Record Foreign Investment in Taiwan Stocks

• Global funds made their biggest one-day purchase of Taiwanese stocks in two decades, buying $2.77 billion on Tuesday.
• This marks the sixth consecutive day of foreign buying, signaling confidence in chipmakers as AI beneficiaries.
• Taiwan's market, dominated by advanced semiconductor producers, is seen as a safe haven amidst AI disruption fears.
• Taiwan Semiconductor Manufacturing Co. (TSMC) now accounts for 45% of the Taiex index, up from 15% a decade ago.
• The surge in equity inflows is also supporting the Taiwanese dollar, with limited currency hedging expected.