260% Higher Return Rate Than 0050! What to Buy When Taiwan Stocks Crash? Expert Reveals: Not Just TSMC, But 'This 1 ETF' to Buy Boldly

Taiwan's stock market has recently been swinging violently, like a rollercoaster, with investors experiencing record-breaking drops and surges in quick succession, facing significant asset volatility. Amid this market pullback, financial expert Chen Chong-ming shared an analysis on Facebook, emphasizing that while NVIDIA and Broadcom possess world-leading chip design capabilities, these designs ultimately depend on manufacturing execution. Therefore, within the broader AI supply chain, TSMC—the leader in semiconductor foundry—stands as the most indispensable player. Citing a report from U.S. media outlet The Motley Fool, Chen points out that the true "once-in-a-decade" AI growth stock is, in fact, TSMC.

Currently, TSMC holds a dominant 73% market share in global advanced semiconductor manufacturing. With its continued leadership in cutting-edge process technology, its market share has steadily expanded in recent years.

What Drives TSMC's Long-Term Competitive Advantage?

On TSMC's long-term operational strengths, Chen referenced remarks by TSMC Chairman Mark Liu from a previous earnings call. Regardless of whether future market demand favors x86, ARM, or RISC-V CPU architectures—or applications in smartphones and autonomous driving—any company requiring the most advanced semiconductor processes is almost certainly a TSMC customer. No matter how AI technology evolves, it will always rely on chip manufacturing as its foundation.

Regarding concrete investment strategies, Chen revealed his long-term bullish outlook on TSMC, stating that he consistently applies a "buy heavily on sharp declines, in batches" approach as the core of his long-term investment portfolio whenever the market corrects sharply.

For Investors Hesitant About Individual Stocks: Which ETF Offers Precise Exposure to TSMC?

For investors who prefer ETFs or wish to avoid holding individual stocks, Chen recommends indirect exposure through Fubon Technology (0052). He notes that due to its extremely high weighting in TSMC shares, 0052 is widely known in the market as the "Little TSMC," with its overall "TSMC exposure ratio" even surpassing that of Yuanta Taiwan Top 50 (0050). Looking at historical performance, 0052 has delivered outstanding cumulative returns—since 2020, it has outperformed 0050 by approximately 260%. In terms of asset allocation priority, Chen ranks them as "TSMC > 0052 > 0050," offering investors a reference during periods of market volatility.