Taipei: Taiwan shares concluded the final trading session of 2025 at an unprecedented high, primarily driven by Taiwan Semiconductor Manufacturing Co. (TSMC), as the benchmark index marked a second consecutive year of record gains propelled by robust demand linked to artificial intelligence (AI) infrastructure.
According to Focus Taiwan, the Taiex, the Taiwan Stock Exchange's benchmark index, commenced higher at 28,723.49 and climbed steadily throughout the session, reaching an intraday peak of 29,009.81. It ultimately closed up 256.47 points, or 0.89 percent, at 28,963.60, marking the highest year-end closing level on record. The total turnover amounted to NT$536.11 billion (US$17.05 billion).
In December alone, the Taiex gained 1,337.12 points, with total fourth-quarter gains amounting to 3,143.06 points. Over the entire year, the benchmark surged 5,928.5 points, or 25.73 percent, breaking the previous record of a 5,104.29-point rise in 2024, and setting a new record for annual point gains for the second successive year. The index has now risen more than 20 percent for three consecutive years.
According to Taiwan Stock Exchange data, the combined market capitalization of all listed companies reached a record NT$94.36 trillion at year-end, representing an increase of approximately NT$20.46 trillion from the previous year. Based on the latest exchange statistics up to the end of November, Taiwan had about 13.71 million securities trading accounts, translating into an average gain of roughly NT$1.49 million per investor in 2025.
The Taiex's intraday peak marked the first time the index surpassed the 29,000-point threshold. Compared to this year's low of 17,306.97 points in April, the market posted a full-year trading range of 50.8 percent.
TSMC, the market's most heavily weighted stock, closed at a record NT$1,550, up NT$30, or 1.97 percent, boosting its market capitalization to NT$40.19 trillion and contributing approximately 240 points to the index's gain. Throughout the year, TSMC rose NT$475, or 44.18 percent, adding NT$12.31 trillion in market value and contributing an estimated 3,813 points to the Taiex, making it the primary driver of the market's advance. Benefiting from strong AI demand, the chipmaker raised its full-year outlook twice in 2025 and now expects U.S. dollar-denominated revenue to grow by nearly 35 percent.
Other major technology stocks also ended higher, including Hon Hai Precision Industry Co., MediaTek Inc., Delta Electronics Inc., and Quanta Computer Inc. Memory chipmakers and silicon photonics-related stocks performed strongly, pushing the electronics sector index up 1.33 percent. In contrast, most traditional industry stocks closed lower. The glass sector index fell 1.43 percent, while plastics stocks showed relative strength late in the session, with the sector index ending up 1.16 percent.
Alex Huang, vice president at Mega International Investment Services Corp., noted that Taiwan has been a key beneficiary of strong AI infrastructure demand, with solid corporate fundamentals underpinning the market's advance. Foreign institutional investors sold a net NT$518 million worth of shares on the main board Wednesday, according to the TWSE.