Taiwan Weekly Kickstart TAIEX gained 4 , led by ex TSMC Tech on renewed foreign buying

Portfolio Strategy Research 14 August 2026 | 11:50PM HKT

TAIEX gained 4%, led by ex-TSMC Tech on renewed foreign buying; ETFs saw their first weekly outflow in four months; strong July sales and 2Q earnings beats sustained earnings upgrades

Performance: TAIEX/MXTW +3.6%/+3.3%, outperforming GSSRTSMR is at +0.4 (potential reversal, Exhibit 51) Alvin So, CFA | MXAPJ by 1.1pp. Tech led gains, driven by Hardware (+8%) Goldman Sachs (Asia) L.L.C. Cross-Strait Risk: GSSRCSRI down to 80 (Exhibit 54) and Other Semis (+6.5%), alongside Health Care (+8%) and Timothy Moe, CFA | Chemicals (+5%). Utilities (-4%), Telecom, Metals & Mining, Upcoming Data: Export Orders (Thu) Goldman Sachs (Singapore) Pte

and Banks (each -1.5% to -2.5%) lagged; TSMC +1.1%. TWD Kinger Lau, CFA | strengthened 0.9% vs. USD to 32.0 (Exhibit 12) Charts of the Week Goldman Sachs (Asia) L.L.C.

Sunil Koul Flows: QFIIs were net buyers of US$5.1bn in cash equities, MSCI Index Review: In its August 2026 review, Taiwan will | Goldman Sachs International mainly Other Tech (+US$3.7bn), alongside TSMC and see 3/9 additions and 6/21 deletions from the MSCI Industrials (+US$0.5bn each), while short futures positions Standard/IMI Index benchmarks, effective after August increased by US$0.8bn (Exhibit 15). Local funds were net 31st (Exhibit 1). Taiwan’s weight in MSCI EM will increase by buyers of US$0.7bn, primarily in Tech and Financials (Exhibit 14bp to 27.6%. We estimate US$6.2bn of gross two-way 16). Retail investors were net sellers of cash equities and passive flows and US$1.2bn net passive inflows (Exhibit 3). ETFs, further reducing margin balances, while increasing net 2Q26 Earnings Summary: Taiwan companies have long futures positions (Exhibit 26). Short interest declined reported 2Q26 earnings, growing +132%/+31% yoy/qoq so modestly (Exhibit 26). ETFs saw US$0.7bn of net outflows, far, with 48% beats versus 38% misses, and a median driven by Active (-US$0.7bn), Leveraged (-US$0.4bn) and earnings/sales surprise of +14%/+4% (Exhibit 4) Dividend (-US$0.1bn) products, partly offset by inflows into broad-market ETFs (+US$0.5bn) (Exhibit 31). Monthly Sales Tacker: Listed companies’ revenues grew 50% YoY in July (vs. 52% YoY in June), tracking at 34% of EPS Revisions: Consensus 2027E EPS is up 1.9%, with most consensus Q3 estimates (vs. a historical average of 32%) +ve revisions in Capital Goods and Tech (Exhibit 50) (Exhibit 5) Valuations: f12m/24m PE at 19.3/15.1x (+1.8/+0.9 s.d.)

TSMC ADR Premium: Stayed at 15%; Reversal index

Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to

Goldman Sachs Taiwan Weekly Kickstart

Charts of the Week: MSCI August 2026 Index Review 3

Charts of the Week: 2Q26 Earnings Season Review 5

Charts of the Week: Monthly Sales Tracker (July 2026) 6

Taiwan Market/Sector Summary & Scorecard 8

Regional Fund Flows and Positioning 22

TSMC ADR Premium Reversal Index (GSSRTSMR) 25

Equity and Policy Risk Indicators 26