Taipei: Shares in Taiwan soared to a new high on Friday, marking the first trading session of 2026, primarily driven by the impressive performance of Taiwan Semiconductor Manufacturing Co. (TSMC) amid a thriving AI market. The Taiex, Taiwan Stock Exchange's benchmark index, closed up by 386.21 points, representing a 1.33 percent increase, reaching 29,349.81. The index fluctuated between 29,007.75 and 29,363.43 throughout the session, with a total turnover of NT$648.84 billion (US$20.66 billion).
According to Focus Taiwan, Concord Securities analyst Kerry Huang noted that the appreciation of the Taiwan dollar against the U.S. dollar indicated a return of foreign institutional investors post-holidays, injecting significant funds into the local market. These investors predominantly targeted TSMC, anticipating favorable outcomes from the company's upcoming investor conference on January 15.
TSMC, which constitutes over 40 percent of the market's total value, saw its shares rise by 2.26 percent, closing at NT$1,585.00. This contributed approximately 280 points to the Taiex's overall rise and propelled the electronics index upward by 1.79 percent. Foreign institutional investors also showed interest in other semiconductor giants like MediaTek Inc., which climbed 2.80 percent to close at NT$1,470.00, and ASE Technology Holding Co., which increased by 2.99 percent to finish at NT$258.00, as reported by Huang.
In the AI server sector, Quanta Computer Inc. experienced a 1.84 percent rise to end at NT$232.00, buoyed by bargain hunting, whereas Hon Hai Precision Industry Co., second only to TSMC in market value, rose by 0.65 percent, closing at NT$232.00. Huang highlighted that buying was prominent among memory chip suppliers, as robust AI applications continued to tighten supply and elevate product prices. Winbond Electronics Corp. surged by 10 percent to NT$90.80, while Nanya Technology Corp. rose by 7.25 percent to NT$207.00.
The electronics sector's dominance left non-tech stocks mostly lagging, with some exceptions in the cable and wire industry, benefitting from increased metal prices. Ta Ya Electric Wire and Cable Co. rose by 1.45 percent to NT$38.50, and Walsin Lihwa Corp. increased by 3.46 percent to NT$32.90. Conversely, weakened oil prices impacted Formosa Plastics Corp., which fell by 1.41 percent to NT$38.48, and Nan Ya Plastics Corp., which dropped by 5.32 percent to NT$57.00.
In the financial sector, E. Sun Financial Holding Co. rose by 1.04 percent to NT$34.10, whereas Cathay Financial Holding Co. and Fubon Financial Holding Co. decreased by 0.79 percent and 0.52 percent, respectively, closing at NT$75.20 and NT$95.60. Huang projected that the Taiex is likely to challenge the 30,000-point mark as foreign institutional buying persists ahead of TSMC's investor conference.
the TWSE confirmed that foreign institutional investors purchased a net NT$12.02 billion worth of shares on the main board Friday.