2026 Taiwan Stock Market Million-Dollar Stock Investment Bureau: How AI Production Capacity Gaps Drive Supply Chain Price Increase Trends

Supply Chain Shortages Become the Norm, Leading to a Full Expansion of Million-Dollar Stocks

The core phenomenon of Taiwan’s tech industry in 2025 is one word: shortage. From chips, advanced packaging to heat dissipation components, upstream and downstream capacities are fully tight, with prices continuously rising. NVIDIA’s Jensen Huang has visited Taiwan multiple times to oversee orders, further confirming Taiwan manufacturers’ pivotal role in the global AI supply chain. This wave of capacity shortages has not only driven up related stocks but also led to a record high number of million-dollar stocks.

As of mid-December, Taiwan’s stocks with market caps over NT$1 billion have reached 28, setting a new record. Unlike in the past when these were mainly in IC design, this round of million-dollar stocks has expanded into cooling, PCB, materials, power supplies, and testing interfaces, clearly showing the trend of AI demand spilling over into the entire supply chain. Xintec has become a data center standard due to BMC chips, with its stock price soaring over 100% year-to-date, once breaking NT$7,300, and continuing to hold the throne as the top stock.

The cooling sector performed remarkably, with Qisda and Jiance both rising to become million-dollar stocks, with annual gains exceeding 100%. Taiwan Optical Fiber, on the materials side, benefited from long-term supply shortages of high-end CCL and glass fiber cloth, with its stock price surging 159%, becoming the strongest black horse of the year. Supply chain partners such as Chuanhu, Ying Chuan, and Wansil also saw gains over 140%, fully validating the market logic of “scarcity drives prices.” Even Delta Electronics, long regarded as a stable holding, approached the million-dollar mark due to surging data center power demands.

High-End Materials in Short Supply, Price Mechanisms Continue to Ferment

AI server specifications keep upgrading, directly triggering upstream material supply crises. High-end glass fiber cloth and low-loss copper foil substrates (CCL) are now in constant shortage, with prices climbing steadily. Foreign institutional investors point out that NVIDIA’s next-generation platform will adopt higher-grade material specifications, indicating that material upgrades have become an irreversible trend.

Material shortages have improved gross margins for related manufacturers, benefiting companies like Lianhua and Taiyo. Downstream PCB and substrate manufacturers such as Zhen Ding and Xinxing also maintain full capacity. The strong and sustained demand for ABF substrates has laid a solid foundation for operational growth into 2026.

Funds Reflow, New ETF Constituents Reveal Institutional Intent

In addition to individual stocks, market funds are rapidly flowing into thematic ETFs. The recently listed Fuhua Future 50 (00991A) has raised over NT$10 billion, with its first-day trading volume surpassing 230,000 units, becoming the top ETF in trading volume, reflecting high investor interest.

The top ten constituents of this ETF are entirely centered around AI: TSMC, Hongjing, Qisda, Wistron, Taiwan Optical Fiber, Delta Electronics, and others. The active management of this fund provides investors with a clear direction: semiconductors 35-45%, AI data center components 35-45%, AI servers and networking 5-15%, with the rest allocated to financials and traditional industries. Fund manager Lü Hongyu states that AI remains Taiwan’s most important growth engine, with corporate profits expected to grow by 20% in 2026. Coupled with a moderate easing of interest rates, a bullish trend is expected to continue.

2026 Focus: New Wave of Device Upgrades and Technological Revolution

Looking ahead to next year, NVIDIA’s next-generation Vera Rubin (VR) platform will initiate a new device upgrade cycle, with comprehensive upgrades in cooling, power consumption, and interconnect bandwidth. ODMs such as Quanta, Wistron, and Foxconn have been confirmed as core partners, with the supply chain for power supplies, cooling, and PCBs expected to be further driven.

On the technological front, silicon photonics and CPO (co-packaged optics) are key breakthroughs to solve high-speed transmission bottlenecks. Taiwan has formed a complete ecosystem from epitaxy and optical components to packaging, with companies like Lianya and Wuxian showing potential. As GPU power consumption surpasses one kilowatt, the penetration rate of liquid cooling will rapidly rise from less than 10% to over 60%, with Qisda, Shuanghong, Jiance, and others already positioning themselves ahead.

Investment Advice: Focus on Shortage Segments, Watch for Valuation Balance

Currently, Taiwan stocks tend to fluctuate after significant gains, raising valuation concerns. However, from an industry fundamentals perspective, the capacity shortages related to AI are unlikely to be fundamentally alleviated before 2026, especially in advanced packaging, high-end materials, cooling, and power systems. These segments provide ongoing fundamental support for the continued rise of million-dollar stocks in the supply chain.