Foreign Investors Sold $1.6 Trillion in Taiwanese Stocks, But Funds Haven't Left? Expert Reveals AI-Driven Capital Flow: Inevitable Return to Taiwan

Foreign investors have sold over NT$1.6076 trillion in Taiwanese stocks this year, surpassing the previous annual record. Notably, TSMC alone accounted for more than NT$1.628 trillion in net foreign sell-offs—exceeding the total net sell-off amount for the entire market. Economist Wu Jia-long, appearing on the program 'Bao Jie Zhen Me Shuo,' speculated that international capital will return to Taiwan.

Wu questioned whether the funds from these sell-offs were actually repatriated overseas. He pointed out that if capital had truly exited, the New Taiwan Dollar (NTD) would have depreciated. However, the NTD has not shown significant weakening. Additionally, if funds had flowed back into U.S. equities, the U.S. Dollar Index should have strengthened—but it has not risen consistently, suggesting the outflow remains unconfirmed.

Despite this, Wu emphasized that under the ongoing AI revolution, international capital is certain to return to Taiwan. "Capital is actively seeking the core of the AI revolution," he stated. With the rise of sovereign AI, countries are building domestic computing and data centers, creating massive infrastructure demand—much of which is being fulfilled by Taiwanese manufacturers, driving a surge in exports.

Moreover, the 'non-red supply chain' initiative—avoiding reliance on China—is generating additional orders for Taiwan. As orders flood in, many Taiwanese manufacturers, including TSMC, are scrambling to expand capacity. TSMC plans to build over ten facilities in Arizona, USA, to achieve economies of scale, and has acquired significant land to accommodate its supply chain partners.

"Investment trends will follow Taiwanese businesses," Wu stressed. Just as Taiwanese companies once moved to China and helped build the 'world's factory,' they are now moving to the U.S. to construct the foundation of the AI revolution. International capital follows industrial revolutions—thus, a return to Taiwan is inevitable.

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