Taiwan Through the Lens of Foreign Capital: Insights into Capital Markets and Competitiveness in the AI Era

Taiwan Institute of Directors (TwIoD) / News Center

The "Taiwan FINI 100" (Foreign Institutional Investors Highlight Taiwan 100) Awards Ceremony and Foreign Investment Forum, jointly organized by the Taiwan Institute of Directors (TwIoD) and the Corporate Development Research Center (CDRC), grandly took place in Taipei in September 2025. This prestigious event gathered over 300 heavyweight guests from government, business, and capital markets. It not only celebrated the exceptional performance of Taiwanese enterprises on the global stage but also delved into how Taiwan can seize opportunities and strengthen global competitiveness in the AI-driven era.

Industry Consensus: Redefining Capital in the AI Era

Prof. Shih-Chun Hsu, Founding Chairman, TWIoD In his opening remarks, Dr. Hsu highlighted the defining characteristics of the current age. In the AI era, capital has evolved beyond traditional financial support to become a core driver of strategic innovation and information integration. "The significance of foreign capital lies not just in its scale, but in the global perspective and professional standards it brings," Hsu noted, urging Taiwanese firms to embrace global best practices and governance standards.

Sherman Lin, Chairman of the Taiwan Stock Exchange (TWSE) Representing Taiwan’s capital markets, Chairman Lin shared data underscoring Taiwan’s international standing. Citing the World Federation of Exchanges (WFE), he noted that the TWSE’s market capitalization now ranks 11th globally (9th by country), with foreign ownership reaching 46%.

Charles Twu, Chief Administrative Officer, Taipei Exchange (TPEx) Addressing the ecosystem from an SME perspective, VP Tu stated that the combined market cap of the Emerging Stock Market and Mainboard has reached trillions of NTD, with foreign ownership at 23.56% in the emerging market, reflecting the vitality of Taiwan’s economy.

Janée Pierre-Louis, Commercial Section Chief at AIT Ms. Pierre-Louis emphasized that the resilience and innovation of Taiwanese firms are why international investors remain bullish. She highlighted the vast potential for cooperation in joint research and talent cultivation, encouraging leaders to utilize programs like SelectUSA. She concluded in Mandarin: "Let us create the AI future together."

Foreign Investment Summit: Decoding Taiwan’s Competitive Edge

Moderated by Professor Shyan-Bin Chou of Chang Gung University, the forum opened with a reflection on how AI translation is dissolving language barriers. Professor Chou noted that while foreign investors hold about 10% of Taiwan's market volume, they own over 40% of its total shares, highlighting their professional discernment.

Randy Abrams (UBS): The Depth of the Ecosystem

With 20 years of experience in Taiwan, Randy Abrams, Head of Taiwan Research at UBS, analyzed the market’s unique charm. "When I first arrived, NVIDIA’s market cap was negligible compared to today's multi-trillion NTD status."

He emphasized that Taiwan’s complete ecosystem—from packaging and testing to PCB substrates—is an unparalleled advantage that keeps investors visiting 20 to 25 companies a week. He advised SMEs to enhance visibility by establishing dedicated Investor Relations (IR) sections and English-language resources.

Oliver Lee (BlackRock): A Historic Opportunity in Re-shoring

Oliver Lee, Head of Taiwan Equity Strategy at BlackRock, compared the current market fervor to the PC boom of the 1990s. He noted that the US-China tech war has forced strategic industries to "de-China," bringing orders back to Taiwan. "

There is only one investment concept called 'Taiwan Hardware'; neither Korea nor Japan holds a similar position." He identified mid-cap stocks as the key battleground for generating alpha (excess returns).

Dr. Yung-Hui Li (Hon Hai Research Institute): Paths to AI Transformation

Dr. Li shared Hon Hai’s (Foxconn) strategy to move beyond low-margin contract manufacturing to become a Platform Provider. Focused on Smart EVs, Smart Manufacturing, and Smart Cities, the institute has developed an in-house Large Language Model (LLM) to serve as foundational infrastructure. He identified AI hardware, application providers, and Physical AI (robotics) as the three "rising stars" of the future.

Outlook: New Opportunities in the AI 3.0 Era

The consensus among foreign institutional investors is clear: Taiwan is not just a manufacturing powerhouse, but an Innovation Stronghold. From the PC era to the AI 3.0 era, Taiwan remains the essential "Enabler" of global technology.

With the wave of AI sweeping the globe, Taiwanese enterprises are ready to showcase "Taiwan Power" through open mindsets, professional governance, and innovative technology. This is more than just a momentary opportunity; it is the starting point for Taiwan’s next Golden Age.

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Media Contact:

Ms. Chang, Taiwan Institute of Directors

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Email: raina.chang@twiod.org

About Taiwan Institute of Directors (TWIOD):Founded in 2012 with the support of entrepreneurs and renowned scholars, TWIOD serves as a think tank and strategic advisor for corporate boards. Its mission is to advance comprehensive board governance, addressing both internal and external issues with long- and short-term perspectives—including global outlook, family business governance, corporate governance, and social responsibility. By uniting leaders from academia, industry, and government.

TWIOD supports family continuity, corporate sustainability, and the creation of Taiwan’s next golden generation. 

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