Select Taiwan Fund Monthly Insights - May, 2025

In May, Taiwan’s stocks rebounded, driven by the appreciation of the TWD versus the U.S. dollar and the easing of tariff concerns. At Computex 2025 (an annual tech convention/trade show, similar to CES (Consumer electronics Show), that takes place in Taiwan) it was evident that demand for artificial intelligence (“AI”) in data centers remains strong, with NVIDIA confident in sustained growth. NVIDIA’s rack-level production is expected to grow significantly in the second half of 2025, while competition in liquid cooling continues. The Taiwan TAIEX Total Return Index, (the “Benchmark”) increased by 12.61% in May 2025 in U.S. dollar terms. The Industrials, Energy and Utilities sectors were the best performing sectors. Within Industrials, Transportation and Capital Goods were the best performing industry groups. During the month, the poorest performing sector was Materials, which still posted a positive total return.