China’s Technological Growth and Taiwan’s 'TSMC Effect' Drive Positive Momentum in Asian Markets

AI Industry Surge and TSMC's Potential Intel Investment Spark Optimism Across Asia

On February 17, 2025, Asian stock markets showed positive movement, fueled by the excitement surrounding the booming artificial intelligence (AI) sector and Taiwan Semiconductor Manufacturing Company’s (TSMC) possible investment in U.S.-based Intel. These factors contributed to growth in the stock markets of both China and Taiwan.

In mainland China, the Shanghai Composite Index closed at 3,355.83, reflecting a modest 0.27% increase compared to the previous day. This rise came as a result of sustained investor enthusiasm for AI technologies, which have shown strong growth potential. According to a report from Goldman Sachs, investors are recalibrating their expectations for China’s AI growth and its economic benefits. The meeting between Chinese President Xi Jinping and key leaders from major tech firms further emphasized the government’s commitment to advancing the country’s technological sector. This unprecedented gathering of private sector leaders at the symposium signaled a new level of support for China’s tech industry, encouraging investors.

In Taiwan, the Taiex Index closed at 23,505.33, marking a notable 1.52% rise. A key factor in Taiwan’s growth was the news that TSMC was exploring the possibility of acquiring a 20% stake in Intel’s foundry services division. This move highlighted the ongoing transformation of Taiwan’s semiconductor sector and the international partnerships that are helping to drive its growth. Despite concerns over U.S. tariffs on semiconductors, these issues have had minimal impact on Taiwan's stock performance, as it is anticipated that any significant measures will take some time to be fully implemented.

Meanwhile, Hong Kong’s Hang Seng Index saw a slight decline of 0.02%, closing at 22,616.23. This small drop was attributed to a pause in the rally of tech stocks that had been performing well in previous sessions. The market’s hesitation could reflect short-term consolidation in the wake of strong performances in recent months.

Japan’s Nikkei 225 Index showed a minor increase of 0.06%, ending at 39,174.25. The rise was driven by strength in the technology sector, which was able to offset concerns about potential additional tariffs from the U.S. The rally in Japan’s tech stocks, such as those in the Tokyo Stock Price Index (TOPIX), demonstrated resilience even amid global uncertainties.

Overall, the positive momentum in Asian stock markets reflects a broader optimism about the future of technology and AI, especially in China and Taiwan. The prospects of new investments and continued innovation in the semiconductor and AI industries appear to be driving the region's economic outlook. With TSMC’s potential role in Intel’s future and China’s ongoing investment in AI, the technology sector looks poised for further growth in the coming months.