The CEO of the Taiwan Stock Exchange said in an exclusive interview with CNBC that Taiwan plays a key role in the artificial intelligence chip revolution and the global semiconductor industry.
Lin Sherman, chairman and CEO of the Taiwan Stock Exchange, attributed the strong rise in Taiwan’s weighted index to the “artificial intelligence revolution.”
“It’s just because of high demand in the high-end chip and server supply chain. That’s why our stock market is going up,” he said.
The Taiwan Stock Exchange has gained 27.93% in the past 12 months, but the index gave back some of its gains on Friday as most major markets in the region fell as tensions in the Middle East rose.
Taiwan’s dominance of the global semiconductor industry is due in large part to TSMC, the world’s largest contract chipmaker that produces advanced processors for clients such as Apple and Nvidia. TSMC is the main manufacturer of Nvidia’s powerful artificial intelligence processors.
“I think this is very attractive to investors…so what this actually means is that Taiwan plays a very critical role in the artificial intelligence supply chain and the semiconductor industry,” Lin said.
Taiwan’s chip dominance
According to statistics, in 2023, Taiwan will be in a leading position in advanced chip manufacturing technology, including 16 nanometer or 14 nanometer and more advanced processes, with a capacity share of 68% in the world. TrendForce Consulting Data. The data shows that it is followed by the United States (12%), South Korea (11%) and China (8%).
According to TrendForce, Taiwan also accounts for nearly 80% of the market share in extreme ultraviolet generation processes such as 7 nanometer and more advanced technologies. The smaller the nanometer size, the more powerful the chip. EUV tools are critical to producing the world’s most advanced processors.
“Our ICT industry foundation is very good. Therefore, we have the strength to promote and leverage the success of the ICT and technology industry to develop new economy businesses,” Lin said.
Earthquakes and geopolitical risks
Earlier this month, Taiwan was hit by its strongest earthquake in 25 years. TSMC says construction site is normal After an initial inspection, some fab workers were briefly evacuated. The workers then returned to their workplaces.
“Taiwan has shown very good resilience…I know some listed companies that report to the Taiwan Stock Exchange have had very little impact on their production,” Lin said.
“The challenge in Taiwan is a test of our business continuity plan. We are actually doing very well. We have a new look and we react very quickly. So you can see in the capital markets, you can see the adjustment very quickly.” rebound,” Lin said.
“Currently the capital market is still in a post-earthquake upward trend.”
Regarding the outcome of the U.S. election and military conflict, Lin said the situation “will always affect some capital markets” as well as the Taiwan market.
“But, as you can see, it’s going to go back to fundamentals. So I think Taiwan has good fundamentals, is resilient and responsive. I’m very confident in our capital market,” Lin said.
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