Taiwan Stock Investment Map 2026: Mining the AI Wave with Copper Foil Substrate Concept Stocks from the "Shortage" Industry Chain

AI Super Cycle Ignition, Why Is There a Major Shakeup in the List of Taiwan’s Top Stocks?

Entering 2025, Taiwan’s tech industry faces a common dilemma: production capacity is never enough. Whether it’s GPU chips, advanced packaging yields, or critical cooling materials and copper foil substrates, the entire supply chain is racing against time. Jensen Huang has repeatedly visited Taiwan to urge orders and has designated the region as NVIDIA’s global R&D hub, a signal that underscores Taiwan manufacturers’ decisive role in AI infrastructure.

As of mid-December last year, the list of Taiwan’s top stocks has expanded to 28, setting a new record high. Notably, the beneficiaries have expanded from chip design industries to surrounding ecosystems—cooling, PCB, power management, testing interfaces, and more are all reaping benefits. This is a direct reflection of the comprehensive spillover effect of AI demand.

Who Is Standing Out in This Surge? The Logic Behind the Top Stock List

This year’s stock king remains InnoLux, which has become an essential component for AI data centers thanks to its BMC chips, with an annual surge of over 100%, once surpassing NT$7,300. But the most surprising rise is in the cooling sector—Chih Hung and Jian Ce both entered the top stocks club, with annual gains approaching or exceeding 100%.

The upstream material chain is even more astonishing. Taiwan’s Guangdian’s stock soared 159% due to long-term shortages of high-spec CCL and fiberglass cloth, becoming the biggest dark horse of the year. Similarly benefiting from the “supply equals price” market logic are Chuanhu, Ying Wei, and Wang Xi, with gains over 140%. Even Delta Electronics, known for its stability, surged close to the NT$1,000 mark due to the huge demand for power systems in AI servers, quickly climbing the ranking of heavyweight stocks.

Copper Foil Substrate Concept Stocks Become Focus: How Material Upgrades Are Becoming an Inevitable Trend

As server specifications continue to break through, upstream material supply crises are directly triggered. High-grade fiberglass cloth and low-loss copper foil substrates (CCL) are in tight supply, with prices continuously soaring. According to foreign research, NVIDIA’s new generation platform will adopt higher-spec copper foil substrates and copper foil processes, making material upgrades an irreversible industry fate.

This shortage wave has unexpectedly benefited Taiwanese manufacturers—gross profit margins have significantly improved. Taiwan’s Guangdian benefits the most, with Lianmao and Xin Xing, among other copper foil substrate concept stocks, also benefiting simultaneously. Downstream PCB and substrate manufacturers like Zhen Ding and Xinxing continue to operate at full capacity. The demand for ABF substrates is booming, laying a strong growth foundation for operations in 2026.

Thematic ETF Reveals Institutional Layout: How Should Investors Follow the Trend?

Market funds are no longer just chasing individual stocks but are pouring into AI-themed ETFs. Fuhua Future 50 (00991A) raised over NT$10 billion, and although it broke the issue price on the first day, its trading volume exceeded 230,000 units, making it the most traded ETF, reflecting high market attention.

Looking at its top ten holdings, almost all are focused on AI: TSMC, Hongjing, Chih Hung, WeiYing, Taiwan Guangdian, Delta Electronics, and others. The allocation logic of this active ETF clearly guides retail investors: 35-45% in semiconductors, 35-45% in AI data center components, 5-15% in servers and networking, complemented by balanced allocations in financials and traditional industries.

Fund manager Lü Hongyu’s judgment points to the same conclusion: AI remains Taiwan stocks’ most core growth engine. By 2026, corporate profits are expected to grow about 20%, and with a mild interest rate cut environment, the bullish trend looks solid and reliable.

New Variables in 2026: VR Platforms, Silicon Photonics, and Liquid Cooling Revolution Ready to Explode

Looking ahead to next year, NVIDIA’s Vera Rubin (VR) new platform will trigger a new wave of server upgrade cycles, with specifications evolving in cooling, power consumption, and interconnect bandwidth. ODMs like Quanta, WeiYing, and Foxconn have been positioned as strategic partners, and related power, cooling, and PCB supply chains are expected to benefit again.

On the technological front, silicon photonics and CPO (co-packaged optics) are becoming key solutions to break through high-speed transmission bottlenecks. Taiwan has formed a strategic ecosystem from epitaxy and optical components to packaging, with potential stocks like Lianya and Wunmao worth close attention. Another trend not to be overlooked is the rapid penetration of liquid cooling—when GPU power exceeds the 1-kilowatt threshold, the penetration rate of liquid cooling technology, currently below 10%, is expected to grow explosively to over 60% within a few years. Companies like Chih Hung, Shuang Hong, and Jian Ce have already seized the opportunity.

Investment Decisions: Focus on “Capacity Bottleneck” Segments, Evaluation Cannot Be Ignored

After a round of gains, volatility and valuation risks in Taiwan stocks have indeed emerged. But from an industry fundamentals perspective, the shortage of AI-related capacity is unlikely to be fundamentally alleviated before 2026, especially in four key areas: advanced packaging, high-end copper foil substrates, cooling systems, and power infrastructure. Mastering these bottleneck positions is the key to unlocking the next wave of profit growth.