The local prospect coloured his card with two bogeys, two eagles and four birdies to head into the weekend rounds with a two-day total of six-under-par 138, holding a one-shot lead over England's Grant Jackson at the S$110,000 Asian Development Tour (ADT) event which is the richest on the Schedule.
Jackson kept up his chase for his maiden ADT win when he returned with a 67 to take second place while overnight leader Park Il-kook of Korea slipped to tied-third with Canada's Lindsay Renolds on identical 140s at the National Garden Golf Course in Taipei.
Starting his round two shots back of Park in tied-sixth, Hsieh quickly made his move with two birdies in his first four holes. He eagled the 16th before completing his outward-nine with another birdie on the par-four 18th.
Hsieh then stumbled with two successive bogeys on the first and second holes after the turn. He redeemed himself with another eagle-three on the third hole before reeling in his fourth birdie on the seventh hole for a 66.
"I was really doing very well in my back-nine and I was gaining lots of confidence. But I slipped up after the turn with two bogeys," said Hsieh.
"It was hard and I was nervous. But I told myself that I've to continue my focus and fortunately I picked myself up with another eagle and a birdie, Overall, it was a great day for me," added the Chinese Taipei player.
The Ballantine's Taiwan Championship is set to showcase the region's aspiring professionals on the ADT, which recently received a massive boost when it was awarded Official World Golf Ranking status from 2013 onwards.
With golf returning to the Olympics in 2016, the ADT will become a platform for emerging players from across Asia to have the opportunity to play their way to Rio De Janeiro.
From next season, all winners of ADT events will receive a minimum of six World Ranking points while the top-six players and ties will earn points based on a sliding scale.
Launched in 2010 with the aim of creating a career pathway for professional golfers in Asia, a record total of 12 events will be played this season with the top three finishers on the Order of Merit earning Asian Tour cards for 2013.