Short interest in Taiwan’s ETF (EWT) has steadily risen since the start of 2025, with a strong concentration in local technology stocks. Despite the sector’s average YTD gain of 7%, short interest has climbed 13% overall. Borrow costs remain elevated, with Nanya Technology (2408 TT) and Global Unichip (3443 TT) exceeding 10%. While Nanya has seen a short squeeze, other stocks continue to show extreme short-selling metrics, leaving the sector vulnerable to further price pressure.

The short interest in the EWT (Taiwan ETF) has been rising since the beginning of the year.

In the local market, many stocks have extreme short interest scores, most of which are technology stocks.

The extreme metrics include:

Crowded score (average of 55) Squeeze score (71)

Short interest as a percentage of float (7%) Borrow cost (7%)

Two stocks have borrow costs above 10% annualized: Nanya Technology (2408 TT) and Global Unichip (3443 TT).

Most of these stocks are up by an average of 7% year-to-date.

Nanya Technology (2408 TT) did see short interest drop by 10% while the stock rose, which may indicate a squeeze, but the conditions still suggest squeeze risk.

None other of these stocks have experienced squeezes, which would typically show up with PnL losses, stock price increases, and short covering. Short positions have not decreased significantly.

Nanya Squeeze, Stock Up, Short Interest Down, Squeeze score up.

In some of these stocks, analysts have turned bearish, typically those that are down for the year.

Most of the stocks are up year-to-date, with short interest increasing as the stocks rise.

The short interest in these names has increased by an average of 13% YTD, with no clear pattern based on YTD returns.

If 1301 Formosa (short interest up 58%) is excluded, no pattern emerges.

Taiwan’s tech sector is at a critical juncture as short interest increases despite positive price momentum. While Nanya Technology (2408 TT) showed early signs of a squeeze, the broader market has yet to see short sellers capitulate. With elevated borrow costs and rising squeeze scores, investors should watch closely for further volatility.

Want to know more?

Access this data in real time using S3’s BLACK APP or Contact us to get started.

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.