Taiwan, Semiconductors, and the Global Economy
🇹🇼 Taiwan · Taipei
Secondaries in Taiwan
Taiwan’s standout is structural: a stock-exchange board built specifically to give young companies a regulated secondary venue.
Jan 2025TWSE Innovation Board opened to all investors
75IPOs in 2025 (TWD 107.6B raised)
TIBA rare exchange-level secondary market for startups
TIB and IPO figures per TWSE public materials and Chambers Venture Capital guide, 2025.
The Innovation Board changes the picture
Most Asian secondary activity happens off-exchange, in private negotiations. Taiwan is different. The Taiwan Stock Exchange’s Innovation Board (TIB) was created to list earlier-stage companies, and from 6 January 2025 the exchange lifted trading restrictions so that all investors — not just professionals — can trade TIB-registered shares on the secondary market.
That gives Taiwanese startups something rare in the region: a transparent, exchange-level secondary venue with public price discovery, rather than a bilateral negotiation against the last private round.
A hardware-heavy ecosystem
Taiwan’s private companies skew toward semiconductors, hardware, and deep tech — reflecting the island’s role in global supply chains. In 2025 the market saw 75 IPOs raising TWD 107.6 billion, a marked step up from the prior year, giving later-stage private holders clearer exit routes.
For investors, the TIB route and the traditional IPO route now sit side by side as ways to enter or exit a private position.
Tax and practicalities
Taiwan closed its most-discussed loophole in 2021: gains individuals make selling unlisted, non-TIB shares are generally brought back into the individual basic income (alternative minimum tax) net, taxed at 20% above the annual exemption threshold — a rule aimed specifically at people routing gains through unlisted vehicles. Exchange-traded shares, including TIB-registered stock, instead attract the standard securities transaction tax of 0.3% on the sale, with capital gains on listed securities otherwise generally exempt for individuals. The practical upshot: the TIB route isn’t just more liquid, it’s administratively cleaner.
Foreign investors face one more layer — trading Taiwanese securities generally requires local registration and a licensed Taiwanese broker, so cross-border buyers of Taiwanese startup exposure often come in through funds rather than directly.
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Frequently asked questions
How are gains on unlisted Taiwanese shares taxed?
Since 2021, individuals’ gains on unlisted, non-TIB shares are generally included in the basic income (AMT) calculation, taxed at 20% above the exemption threshold. Sales of exchange-traded shares instead attract a 0.3% securities transaction tax. Verify current rules with a licensed Taiwanese tax adviser before transacting.
What is the TWSE Innovation Board (TIB)?
It is a board of the Taiwan Stock Exchange designed for innovative, earlier-stage companies. Since January 2025, trading of TIB-registered shares has been opened to all investors, creating an exchange-level secondary market for startup equity.
Can foreign investors trade on the TIB?
Access rules for foreign investors follow the TWSE’s broader framework and can require local brokerage arrangements. Confirm current eligibility with a licensed Taiwanese broker before transacting.
Why is Taiwan’s startup base concentrated in hardware?
Taiwan sits at the centre of global semiconductor and electronics supply chains, so a large share of its high-growth private companies are in chips, components, and deep tech rather than consumer software.
Start with the basics
New to buying and selling existing startup stakes?Secondaries Explained walks through the mechanics, pricing, and pitfalls of secondary transactions in plain language — and it applies across every market on this site, Taiwan included.