UBS Equity Preference List Taiwan 2026 08 21

21 August 2026, 11:11 UTC Chief Investment Office GWM Investment Research

In this publication, we provide a list of high-conviction Taiwanese stocks with tactical opportunities and attractive risk-reward. Allen Pu UBS AG Hong Kong Branch The launch of ChatGPT in 2022 ignited the largest infrastructure buildout in modern history, with strong AI capex expected to continue supporting this expansion. We think the Taiwanese market, with its high concentration of Xueqiong Huang semiconductor and hardware companies, stands to benefit from the extended UBS AG Singapore Branch capex cycle. Our Taiwan Equity Portfolio List aims to highlight the most compelling investment ideas, particularly companies well-positioned to benefit from rising global demand for AI Compute. Please see important disclaimers and disclosures at the end of this Ongoing investment in AI infrastructure ensures sustained demand for both document. semiconductors and related hardware products, positioning Taiwanese companies to capture upside from global technology trends. This diversified profile among AI infrastructure value chain can withstand sector-specific volatility, especially as investors grow cautious about the semiconductor sector following its strong year-to-date rally. Despite the absence of a meaningful correction and year-to-date returns nearing 60%, recent updates—especially TSMC’s earnings and Alphabet’s increased capex plan—have provided greater visibility into sustained AI-driven hardware spending. This reinforces our conviction that Taiwan will continue to benefit from extended investment cycles in semiconductors and hardware.

Latest Changes: We have added Global Unichip and Jentech Precision Industrial to our portfolio with a weight of 2.0 percentage points (pps) each, and removed ASMedia Technology Inc. We have also increased the portfolio weight of Unimicron Technology by 1.0 ppt and reduced the portfolio weights of Delta Electronics, King Yuan Electronics, MediaTek Inc. and Hon Hai Precision by 1.0 ppt each.

Potential trading restrictions for residents outside Taiwan.

Most Preferred Company Changes* Currency Weight

Accton Technology Corporation TWD 3.0% ASE Industrial TWD 5.0% ASMedia Technology Inc Removed TWD 1.0% ASPEED Technology Inc TWD 2.0% Delta Electronics Weighting TWD 4.0% Global Unichip Added TWD 2.0% Hon Hai Precision Weighting TWD 1.0% Jentech Precision Industrial Added TWD 2.0% King Slide Works TWD 3.0% King Yuan Electronics Weighting TWD 2.0% Largan Precision TWD 2.0% MediaTek Inc. Weighting TWD 7.0%

Chief Investment Office GWM, 21 August 2026 Page 1 of 16

Company Changes* Currency Weight

Taiwan Semiconductor Manufacturing TWD 58.0% UMC TWD 3.0% Unimicron Technology Weighting TWD 3.0% Wiwynn TWD 3.0%

Source: UBS, Consider potential trading restrictions, all figures are rounded *Changes since the last publication

Positioning and key trends Since ChatGPT’s public debut in 2022, generative AI has transformed the global investment landscape, igniting the largest infrastructure build-out in modern history. Over the next few years, we expect strong AI capex to continue supporting this build-out, driving overall spending to USD 1.3 trillion by 2030, which implies a 25% compound annual growth rate between 2025 and 2030.

Taiwan’s market stands to benefit from the strong capex cycle due to high market composition of 67% semiconductors and 19% hardware. The ongoing investment in AI infrastructure ensures sustained demand for both semiconductors and related hardware products, positioning Taiwanese companies to capture upside from global technology trends while offering a diversified profile that can weather sector-specific volatility.

We expect robust earnings growth in the Taiwan market, with forecasts of 42% for 2026 and 35% for 2027. This strong momentum is driven by continued innovation and expansion in advanced technology sectors, particularly semiconductors and hardware for AI data center. The market’s leading companies are well-positioned to benefit from rising global demand for AI, high-performance computing, and next-generation electronics. Taiwan’s earnings trajectory reflects the structural advantages of its tech ecosystem, making it an…