Asian chip stocks gained momentum on January 16, 2026, with Taiwan's semiconductor sector leading the rally after a bilateral trade agreement with the United States was finalized. TSMC rose 7.1% on strong investor confidence in supply chain stability and expanded technology access.
- Taiwan Semiconductor Index rose 6.3% on January 16, 2026
- TSMC gained 7.1%, adding USD 18.7 billion to its market cap
- U.S.-Taiwan trade agreement focused on semiconductor supply chain and tech cooperation
- ASE Technology and MediaTek advanced 5.2% and 4.8%, respectively
- Hang Seng Index opened 0.8% higher, supported by semiconductor stocks
- Samsung Electronics rose 2.3% on expectations of expanded production partnerships
Asian technology equities opened higher on January 16, 2026, as investor sentiment improved following the announcement of a new trade framework between the United States and Taiwan. The agreement, aimed at strengthening semiconductor supply chain resilience and mutual technology cooperation, triggered a sharp rebound in Taiwan's tech-heavy indices. The Taiwan Semiconductor Index climbed 6.3%, outperforming regional peers and closing at 14,892 points. Among individual stocks, TSMC (TSE: 2330) surged 7.1% to close at TWD 688.50, marking its strongest single-day performance since late 2024. The company's market capitalization rose by approximately USD 18.7 billion, bringing its total valuation to USD 782 billion. This gain reflected renewed confidence in TSMC’s access to advanced U.S. semiconductor equipment and potential expansion of joint R&D initiatives. Other key players in the sector also recorded gains: ASE Technology (TSE: 3008) rose 5.2%, while MediaTek (TSE: 2454) advanced 4.8%. The broader MSCI Taiwan Index rose 4.7%, outpacing the MSCI Asia Pacific Index, which gained 1.9%. Hong Kong’s Hang Seng Index opened 0.8% higher, with semiconductor-related stocks in the city’s tech sector contributing significantly to the uptick. The trade agreement is expected to reduce regulatory uncertainty and enhance export controls flexibility for high-performance chips, benefiting not only Taiwan’s export-driven tech industry but also U.S. firms reliant on its manufacturing capacity. The momentum extended to South Korea, where Samsung Electronics (KRX: 005930) rose 2.3% on anticipatory buying ahead of potential production partnerships under the new framework.