Taipei: Shares in Taiwan closed at a new high on Monday, driven by the semiconductor sector, as investors remained optimistic about global demand ahead of the SEMICON Taiwan 2025 opening on Wednesday, dealers reported.
According to Focus Taiwan, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), increased by 52.80 points, or 0.22 percent, closing at 24,547.38. The index fluctuated between 24,547.38 and 24,729.96 throughout the day, with a total turnover of NT$433.56 billion (US$14.21 billion). The intraday peak also marked a historical high before some early gains were reduced by the end of trading.
“The global semiconductor industry saw continued support from artificial intelligence applications (before SEMICON opens),” Concord Capital Management analyst Lu Chin-wei commented. SEMICON Taiwan 2025, which is set to commence on Wednesday in Taipei, will showcase AI chips, advanced IC assembly and testing services, and fan-out panel-level packaging (FOPLP) technologies.
Lu further noted, “Today, buying rotated to other semiconductor heavyweights, such as ASE Technology Holding Co. as the gains posted by TSMC (Taiwan Semiconductor Manufacturing Co.) were erased.” ASE Technology, an IC packaging and testing services provider, surged by 10 percent, closing at NT$171.50. However, TSMC, the most heavily weighted local stock, remained unchanged at NT$1,180.00, down from a high of NT$1,195.00.
King Yuan Electronics Co., an IC testing firm, saw its shares rise by 5.62 percent to NT$169.00, while memory chip supplier Nanya Technology Corp. increased by 0.94 percent to NT$53.50. Among AI-related stocks, Asia Vital Components Co., known for providing cooling solutions to AI gadgets, rose by 2.12 percent to NT$964.00, whereas iPhone assembler and AI server maker Hon Hai Precision Industry Co. fell by 0.73 percent to NT$203.50.
In the mixed old economy sector, Lu observed that “military concept” stocks continued their upward trend, anticipating a rise in government defense spending. Aerospace Industrial Development Corp., a fighter jet developer, rose by 2.62 percent to NT$66.50, and Lungteh Shipbuilding Co. gained 4.16 percent to NT$188.00.
Contrasting the upward trend, property developer Kindom Development Co. dropped by 4.85 percent to NT$38.25, and rival King’s Town Construction Co. fell by 7.43 percent to NT$45.45, as investors took profits following last week’s mortgage rule easing by the government. Additionally, Formosa Plastics Corp. rose by 0.93 percent to NT$38.15, while Nan Ya Plastics Corp. decreased by 0.13 percent to NT$38.40.
The financial sector underperformed, losing 0.57 percent, with Cathay Financial Holding Co. dropping by 1.24 percent to NT$63.80, and Fubon Financial Holding Co. falling by 1.15 percent to NT$86.00. Lu cautioned, “After recent solid gains, investors should stay alert over possible profit-taking as part of today’s upturn was eroded with the Taiex hitting a historic intraday high. But with the U.S. Federal Reserve likely to cut interest rates soon, liquidity buying could lend support to the stock markets.”
Foreign institutional investors purchased NT$14.62 billion worth of shares on the main board on Monday, as reported by the TWSE.
