TAIEX Taiwan Stock Market Index: Meaning, Companies, Calculation and Performance

Taiwan is home to some of the world’s largest semiconductor and electronics companies, making its equity market closely watched well beyond the island itself. The benchmark most commonly associated with this market is TAIEX.

TAIEX, formally the Taiwan Stock Exchange Capitalization Weighted Stock Index, tracks the broad performance of eligible common stocks listed on the Taiwan Stock Exchange. This makes it the principal Taiwan stock market index and an important reference point for following movements in Taiwan’s listed equity market.

 What is the TAIEX stock market index?

TAIEX stands for the Taiwan Stock Exchange Capitalization Weighted Stock Index. It is compiled by the Taiwan Stock Exchange and measures the aggregate performance of eligible common stocks listed on the TWSE. 

Unlike an index built around a fixed number of companies, TAIEX covers a broad set of listed common stocks, subject to its eligibility rules. As a result, it gives a wider view of Taiwan’s listed equity market than narrower indices that focus only on a selected group of large companies.

Like other stock market indices, TAIEX is a benchmark rather than an investment product. Its movement reflects changes in the market value of its constituent stocks.

 The origin and history of the TAIEX

TAIEX was launched in November 1970, making it the first self-compiled index of the Taiwan Stock Exchange. Its base is the annual average for 1966, which was assigned a value of 100. 

The index has since become the most prominent benchmark for Taiwan’s securities market. TWSE also publishes several related broad-market, sector and thematic indices alongside TAIEX. 

Source: TWSE; TAIEX launch, base and index information as on 28 August 2026. 

 How the TAIEX stock market index works

TAIEX uses market capitalisation to determine the influence of each constituent. This means that a larger company generally has a bigger effect on the index than a smaller one.

The index is not designed to give every company an equal weight. As share prices and the number of issued shares change, company market values change too, which can alter their influence on the TAIEX index.

TWSE maintains both a Price Index and a Total Return Index. The Price Index mainly reflects movements in constituent share prices, while the Total Return Index also adjusts for cash dividends. Both are calculated and disseminated every five seconds during regular trading hours. 

 How TAIEX values are calculated

TWSE calculates TAIEX using the following formula:

TAIEX = Aggregate market value / Base value of the current day × 100

Aggregate market value is calculated by multiplying the trading price of each constituent by the number of shares issued and then combining those market values. The base value is adjusted when necessary so that events such as eligible corporate actions do not create artificial movements in the index. 

This calculation method is also why large companies can have a noticeable effect on daily TAIEX movements.

 TAIEX composition: key sectors and companies

The TAIEX constituents span many industries, but Taiwan’s listed market has a clear technology tilt.

TWSE’s 2026 Fact Book shows that semiconductors alone accounted for 52.22% of the market capitalisation of TWSE-listed stocks at the end of 2025. Finance and insurance represented 9.68%, electronic parts and components 7.60%, computer and peripheral equipment 5.90%, and other electronics 5.23%. 

More recent TWSE data reinforces this picture. Technology-related sectors represented approximately 81.44% of TWSE market capitalisation as of end-April 2026. 

The latest complete annual company ranking published in the TWSE 2026 Fact Book shows the largest TWSE-listed companies by market capitalisation at the end of 2025 included:

Because TAIEX is capitalisation weighted, the movement of large listed companies can have more influence on the index than that of smaller constituents. Exact TAIEX constituent weights can change with market prices, shares in issue and changes to index eligibility. TWSE publishes updated constituent and weighting data on each trading day. 

Source: TWSE 2026 Fact Book and TWSE market data; company and industry figures are based on end-2025 data, with technology-sector market share updated to end-April 2026. 

 Which stocks are included in TAIEX?

TAIEX broadly covers common stocks listed on the Taiwan Stock Exchange, subject to the index’s eligibility rules.

Newly listed companies are generally added from the first trading day of the month following one full calendar month after listing, although TWSE specifies certain exceptions. Stocks under full-delivery status and some suspended stocks are excluded according to the methodology, while delisted stocks leave the index on their delisting date. 

This makes TAIEX different from an index such as the Nifty 50 or FTSE TWSE Taiwan 50, where a fixed number of selected companies make up the benchmark.

 What affects the TAIEX index?

TAIEX moves with the share prices of its constituent companies, but each company does not have the same influence. Because the index is weighted by market capitalisation, movements in larger listed companies can have a greater effect on the index.

Several factors can therefore influence TAIEX:

• Large-cap company performance: Price movements in the biggest constituents can have a noticeable effect because of their higher index weights. 
• Semiconductor and electronics trends: Taiwan’s listed market has a sizeable technology presence, so developments across semiconductors, electronic components and related industries can influence broader index movements. 
• Company earnings and outlook: Changes in revenue, profitability, demand expectations or capital expenditure at major listed companies can affect their share prices and, in turn, TAIEX. 
• Global demand: Many Taiwanese companies operate in international supply chains, so changes in global demand for semiconductors, electronics and technology products can affect market sentiment. 
• Broader market conditions: Changes in interest-rate expectations, currencies, international equity markets and investor flows can also influence Taiwanese share prices. 

The relative importance of these factors changes over time. In a capitalisation-weighted index, however, the performance of the largest constituents remains especially relevant.

Source: TWSE; TAIEX methodology and Taiwan market composition information as on 28 August 2026.

 TAIEX historical performance

TAIEX has moved higher over the last several calendar years, although the journey has included periods of sharp gains and declines along the way.

TWSE reported that TAIEX ended 2023 at 17,930.81, followed by 23,035.10 at the end of 2024 and 28,963.60 at the end of 2025. The TAIEX index closed at 46,331.45 on 28 August 2026. 

These figures relate to the TAIEX Price Index. Returns from a particular Taiwan-focused fund or ETF may differ because the product may track a different benchmark or be affected by expenses, tracking differences and currency movements.

Source: TWSE; year-end TAIEX data for 2023-2025 and closing index data as on 28 August 2026. 

 TAIEX and the Taiwanese economy

TAIEX is closely associated with Taiwan’s equity market, but it is not the same thing as the Taiwanese economy.

An economic measure such as GDP captures activity across households, businesses and government. TAIEX instead reflects the market value of eligible listed companies. Stock prices can therefore move ahead of, or differently from, changes in the wider economy.

The connection becomes especially noticeable through technology. Taiwan plays an important role in semiconductors, AI infrastructure and electronics manufacturing, and technology-related industries accounted for more than four-fifths of TWSE market capitalisation as of end-April 2026. 

That makes TAIEX useful for following sentiment around Taiwan’s listed companies and technology ecosystem, while still keeping it distinct from a direct measure of economic growth.

 Investing in the TAIEX from India

An index itself cannot be purchased directly. Investing in the TAIEX generally means gaining exposure through an ETF, fund or another eligible investment product designed to track TAIEX or Taiwan equities.

An important distinction is that not every Taiwan-focused product tracks TAIEX. Some may follow other benchmarks, such as the FTSE TWSE Taiwan 50 Index, which has a different constituent universe and methodology.

For an India-based investment, currency also becomes part of the return experience. Changes between the Indian rupee and the currency in which the overseas investment is held can affect the eventual rupee value independently of movements in the underlying Taiwan stock index.

The benchmark, product structure, costs and applicable overseas-investment rules therefore matter alongside the movement of TAIEX itself.

 Comparing TAIEX with Indian benchmarks

TAIEX and the Nifty 50 are both prominent equity benchmarks, but they are built differently.

TAIEX is much broader by company count, whereas Nifty 50 deliberately focuses on 50 large companies. The weighting systems also differ: TAIEX uses issued-share market capitalisation, while Nifty 50 uses free-float market capitalisation. 

Their numerical index levels should therefore not be compared directly. The level of an index is influenced by its own base value, methodology and history rather than indicating that one market is inherently more valuable than another.

Source: TWSE and NSE Indices; index methodology information as on 28 August 2026. 

 Benefits and considerations of investing in TAIEX-linked products

Exposure linked to TAIEX can provide access to a market with a significant presence in semiconductors, electronics and the wider technology supply chain. It can also introduce geographic exposure beyond the Indian equity market.

At the same time, the structure of the index matters. Taiwan’s listed market is heavily influenced by technology-related companies, so broad company coverage does not necessarily mean an evenly spread sector mix.

Currency movements can also change the rupee-denominated outcome of an overseas investment. In addition, a Taiwan-focused ETF or fund may track TAIEX, a narrower Taiwan index or an entirely different benchmark.

A comparison therefore needs to consider:

• the index actually being tracked 
• sector and company concentration 
• product expenses 
• liquidity 
• tracking difference 
• currency exposure 
• applicable overseas-investment rules 

These factors help distinguish between exposure to the Taiwan stock market index itself and the experience of investing through a particular product.

 Conclusion

TAIEX offers a broad view of Taiwan’s listed equity market and is the country’s most prominent stock-market benchmark. Its capitalisation-weighted structure means larger companies have greater influence, while Taiwan’s sizeable semiconductor and electronics industries give technology an especially important role.

Understanding the index’s calculation, composition and history also makes comparisons with other stock market indices more meaningful. For overseas investment exposure, the benchmark being followed, product structure and currency movement matter alongside the TAIEX level itself.

 FAQs

 Is TAIEX the same as the Taiwan Stock Exchange?

No. The Taiwan Stock Exchange, or TWSE, is the securities exchange, while TAIEX is an index compiled by TWSE to measure the aggregate performance of eligible common stocks listed on the exchange. 

 What is the TAIEX index code?

The official TWSE index code for TAIEX is IX0001, while the Total Return Index has the code IR0001. 

 What are the TAIEX trading hours in India?

TWSE’s regular trading session runs from 9:00 am to 1:30 pm Taiwan time, which corresponds to 6:30 am to 11:00 am IST. Orders for the regular session can be entered from 8:30 am Taiwan time. 

 Is TAIEX the same as the FTSE TWSE Taiwan 50 Index?

No. TAIEX is a broad benchmark covering eligible common stocks listed on TWSE, while the FTSE TWSE Taiwan 50 Index focuses on 50 large Taiwanese companies. They therefore differ in constituent coverage and weighting. 

 Where can the current TAIEX index value be checked?

The current TAIEX level can be checked through Taiwan Index Plus, which publishes regularly updated TAIEX data, while official end-of-day index values are available through its historical data section. 

 Why can large technology companies have a strong effect on TAIEX?

TAIEX is weighted by market capitalisation, so companies with larger market values have greater influence on index movements. Taiwan’s market is also heavily technology oriented, with technology-related sectors accounting for 81.44% of TWSE market capitalisation as of end-April 2026.