[Weekly Taiwan Business News] Mitsubishi Electric and Foxconn to Partner! The Impact of TSMC Trade Secret Leak and the Story Behind Taiwan Stocks' Rise to World's 6th [May 4, 2026 Issue]

Y's Consulting Group (Headquarters: Taipei City, Republic of China; Representative: Yasushi Yoshimoto), which distributes Taiwan market trends and industry information, announced in the May 4, 2026 issue of "Weekly Taiwan Business News" that the Taiwan Stock Exchange's TAIEX has for the first time in history broken the "40,000 point" barrier. AI and semiconductor-related stocks, led by TSMC, are powerfully driving the market. Furthermore, there is a wealth of unmissable business news, including strategic partnership discussions between Mitsubishi Electric and Foxconn (Hon Hai) in the EV sector, and a surge in demand for hybrid vehicles due to the Middle East situation. [Highlights] ■ Taiwan Stocks Break 40,000 Points, Driven by AI and Semiconductors On May 4, the Taiwan Stock Exchange's TAIEX closed at 40,705.14 points, breaking the 40,000-point barrier for the first time in history. It has surged 2.3 times in just over a year, with AI and semiconductor-related stocks supporting this historic rise. ・Three major companies leading the charge: TSMC (foundry), MediaTek (IC design), and ASEH (semiconductor packaging and testing) accounted for approximately 79.1% of the increase. ・Investment deregulation provides a boost: The Financial Supervisory Commission eased the investment cap on TSMC for ETFs from 10% to 25% starting April 24, accelerating capital inflow. ・Youth investment fever: The number of securities account openings in April reached a record high of 14.2 million people. The growth rate of accounts among those aged 0-19 and in their 20s was particularly notable, indicating increased long-term investment by parents' generations and strong investment interest among young people. ■ This Week's Featured Business and Economic Topics 1. Mitsubishi Electric's Automotive Equipment Business Considers 50% Investment from Foxconn Mitsubishi Electric has begun discussions on a strategic partnership with Foxconn Technology Group (Hon Hai), the largest EMS provider, for the joint operation of its automotive equipment business. With an eye on accepting a 50% investment in Mitsubishi Electric Mobility, they aim to expand collaboration in electrification, autonomous driving, and SDV (Software-Defined Vehicle) fields. By leveraging Foxconn's global network, they seek to expand the global deployment of high-quality EV platforms originating from Japan. 2. TSMC Trade Secret Leak Incident, A14 Process Technology Also Affected In the TSMC trade secret leak incident involving former employees of Tokyo Electron (TEL)'s Taiwanese subsidiary, it was revealed from a judgment by the Intellectual Property and Commercial Court that confidential information regarding the next-generation "A14" manufacturing process, equivalent to the 1.4-nanometer process, was also leaked. 3. Hybrid Car Popularity Surges Due to High Oil Prices, Supply Shortage Expected Until 2027 Amid rising oil prices due to the tense situation in the Middle East, demand for hybrid vehicles (HVs) has surged in Taiwan. According to Hotai Motor, the general agent for Toyota Motor in Taiwan, HV orders have increased by 20-30% since the beginning of this year. However, due to a shortage of raw materials for automotive batteries, the HV supply shortage is expected to continue until 2027. ▼Supplementary explanations can also be viewed in the following video▼ This is the Weekly Taiwan Business News, delivering the latest business information from Taiwan. https://www.youtube.com/watch?v=fTrDGkMMPho ■ For Continuous Grasp of Taiwan Business Trends Y'sNews is an information service that delivers daily trends in Taiwan's business, economy, and industry in Japanese. We deliver the latest news at 5 PM on weekdays, and a two-week free trial is available. ▼Details and application here▼ https://www.ys-consulting.com.tw/service/news/member.html#shidoku Company Name: Y's Consulting Group Location: 8F, No. 9, Xiangyang Road, Taipei City, Republic of China Representative: Yasushi Yoshimoto Established: November 1996 URL: https://www.ys-consulting.com.tw/ Business Activities: ・Management consulting (HR/labor, marketing, management strategy, information security) ・Human resource training (by hierarchy, by job type) ・Japanese Taiwan economic news, machinery industry journal distribution ・Market research, industry research, customer research ・Cloud service sales Y's Consulting Member Services Department e-mail: info@ys-consulting.com TEL: +886-22381-9711 (Japan time 10:00-19:00)