Taiwan stock market boom drives retail investor borrowing

A surge in the Taiwan stock market, driven by high demand for artificial intelligence hardware, has led to a trend of retail investors taking out significant loans to fund stock purchases. The market rose by 59% in the first half of the year, largely supported by chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounted for approximately 45% of the total value of the Taiwan Stock Exchange by the end of 2025.

While some investors have seen substantial returns, others have faced heavy losses or fallen victim to scams. Authorities have issued warnings regarding the risks associated with this borrowing trend. One investor reported quadrupling his investment after taking out NT$5 million in loans to purchase technology stocks, including TSMC shares.