A surging Taiwan dollar is aggravating concerns about the competitiveness and earnings prospects of local firms that form the backbone of global tech supply chains.

An unprecedented two-day surge in Taiwan's currency is the latest leg of a scramble out of the U.S. dollar and signal of disquiet in markets as U.S. President Donald Trump's trade war rattles confidence and disrupts trade relationships.

Taiwan’s currency is exploding higher, and along with it fears about what Bloomberg reports is $767 billion of foreign assets held by Taiwan’s life insurers.