Taiwan’s exports soared in January 2026, achieving the fastest growth since 2010. This increase was driven by a tech boom and the timing of the Lunar New Year, with the US briefly becoming Taiwan’s biggest export market.
January Export Surge
In January, exports jumped by 69.9% compared to the same month last year, up from 43.4% in December and beating market predictions. In 2025, Mainland China and Hong Kong were Taiwan’s primary export destinations, making up 27.7% of exports, while the US accounted for 21.8%.
Experts expect Taiwan’s growth to continue in 2026, despite some challenges. The net export figures also exceeded expectations, with Taiwan starting the year with a net export of US$18.9 billion, showing ongoing growth.
The remarkable export figures from January 2026 are a strong positive sign for assets linked to Taiwan. We can expect continued growth in Taiwanese stocks, especially in the tech sector, which is driving this increase. Buying call options on the TAIEX index could be a smart move to benefit from potential gains in the coming weeks.
The TAIEX index has surpassed the 22,000 mark for the first time, thanks to key electronics exporters. Shares in major semiconductor companies have risen over 15% since the beginning of the year, and this positive export data indicates healthy order books. Traders might consider taking long positions on individual tech stock futures or options for more targeted exposure.
Impact on Currency and Trading Strategies
The impressive US$18.9 billion trade surplus is putting strong upward pressure on the New Taiwan Dollar (TWD). Similar to 2025, when robust trade figures helped strengthen the currency, we expect the USD/TWD exchange rate to continue declining. Selling USD/TWD forward contracts or buying TWD call options are effective ways to prepare for a stronger local currency, which has recently tested support around the 31.00 level.
This trend is linked to the global AI hardware growth, expected to increase by another 15% in 2026, building on last year’s recovery. The US’s temporary rise as the largest export market is a significant shift, reducing immediate dependence on Mainland China. While the outlook remains bright, purchasing some out-of-the-money put options could provide a cost-effective hedge against potential geopolitical changes or a slowdown in US demand.
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