Longest Market Stabilization in History! National Stabilization Fund Invests in Just 8 Stocks, All Profitable, Earns NT$7.77 Billion from TSMC Alone

The results of the 9th market stabilization mission by Taiwan's National Stabilization Fund have been released. This intervention was launched in response to market shocks caused by U.S. reciprocal tariff policies, lasting 279 days in the buying phase and an additional 114 days in the disposal period—setting a record for the longest execution period in Taiwan's stock market history. Through a precise strategy focused on just eight high-weight stocks, the fund achieved profitability across all holdings. Notably, its investment in TSMC (2330-TW) alone generated over NT$7.7 billion in profit, contributing to nearly NT$10 billion in net gains and successfully propelling the Taiwan Stock Index to a historic high, effectively serving as a 'stabilizing force.'

According to the disclosed portfolio details, the fund adopted a highly concentrated strategy, investing in only eight stocks. Of the total capital deployed, approximately 63% (about NT$7.7 billion) was allocated to semiconductor leader TSMC (2330-TW), 15% to Hon Hai (2317-TW), and 7% each to ASE Holding (3711-TW) and MediaTek (2454-TW). Additional investments were made in two other technology stocks: Delta Electronics (2308-TW) and Quanta Computer (2382-TW). In the financial and traditional sectors, the fund invested in only one stock each: Fubon Financial (2881-TW) and Formosa Plastics (1301-TW).

All eight stocks held during the stabilization period were exited profitably. TSMC (2330-TW) was the top performer, with an investment cost of NT$7.701 billion and a disposal amount reaching NT$15.36 billion, generating a capital gain of NT$7.658 billion. Adding NT$113 million in cash dividends, the total contribution reached NT$7.772 billion—accounting for 78% of the total net disposal profit. ASE Holding (3711-TW) demonstrated remarkable return potential, investing NT$860 million and achieving a net disposal profit of NT$1.001 billion, yielding an impressive 116.38% return on investment—the highest among the eight holdings. Delta Electronics (2308-TW) invested NT$452 million and earned NT$392 million, achieving an 86.66% return rate, ranking second. Hon Hai (2317-TW) and MediaTek (2454-TW) also contributed NT$456 million and NT$302 million in profits, respectively.

Looking back at the market context, the first quarter of 2025 saw massive foreign investor withdrawals due to uncertainties surrounding U.S. tariff policies, with cumulative net sales exceeding NT$704.998 billion. The market index briefly dropped to a low of 17,391.76 points. On April 9, 2025, the National Stabilization Fund announced its emergency entry, quickly restoring market confidence. Foreign investors significantly repurchased shares in June and July. During the stabilization period, the Taiwan Stock Index surged by 12,107.34 points cumulatively, representing a 65.59% increase.

The fund began its exit process on January 13, 2026, and successfully liquidated all positions by May 6, 2026. Market momentum remained strong during the exit phase, with the index soaring to a record high of 41,138.85 points. Foreign ownership ratios also rebounded to 49.57%. The Ministry of Finance stated that, given ongoing changes in the global political and economic landscape, it will continue to closely monitor the impact of international trade developments on Taiwan's stock market and take necessary measures to maintain financial stability when needed.