Taiwan stocks to hit 50,000 points, but 'Taiwan disease' poses risk, says Ko Wen-je

Taiwan People's Party founder Ko Wen-je predicted that Taiwan's stock market will inevitably surpass 50,000 points, driven by the nation's prowess in artificial intelligence and semiconductor development. Speaking at a campaign event in Changhua, Ko cited his observations at the Taipei Computer Show as evidence of the sector's potential.

"I saw that at the computer exhibition, the AI needed to do things, and I saw it and knew it could be done. It's a feasible vision, and economic expectations will continue to rise," Ko stated. He believes the rapid advancements and achievable goals in AI technology will fuel further market growth.

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Taiwan cannot exist without TSMC, but Taiwan cannot only have TSMC.

However, Ko cautioned that Taiwan faces an economic vulnerability he termed "Taiwan disease," which he considers more severe than the "Dutch disease." He explained this condition as Taiwan's critical dependence on its dominant chipmaker, TSMC. "Taiwan cannot exist without TSMC, but Taiwan cannot only have TSMC," he articulated, highlighting the risks associated with over-reliance on a single industry.

Ko drew parallels to the 2008 Lehman Brothers financial crisis, warning that unchecked growth in sectors like AI and semiconductors, which have physical and technological limits, could lead to a market collapse. He urged for diversification and preparedness for potential downturns when these industries reach their zenith.

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I saw that at the computer exhibition, the AI needed to do things, and I saw it and knew it could be done. It's a feasible vision, and economic expectations will continue to rise.