Taipei: Shares in Taiwan closed at another high Wednesday as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) smashed its closing records amid optimism over artificial intelligence development, dealers said. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), rose 337.41 points, or 1.36 percent, to end at 25,192.59 after moving between 25,032.88 and 25,272.23, beating the previous closing high of 24,855.18 set Tuesday. Turnover totaled NT$523.46 billion (US$17.29 billion).
According to Focus Taiwan, investors reacted to a spike in TSMC’s American depositary receipts (ADRs) overnight by increasing their buying activity in Taipei. Concord Securities analyst Kerry Huang noted that this buying behavior reflected high hopes for AI demand, with TSMC being the sole supplier of advanced chips for AI gadgets. The turnover exceeding the NT$500 billion mark indicated that investors were willing to chase prices, betting on a higher Taiex in the future.
Following a 1.51 percent rise in TSMC’s ADRs in the U.S. market on Tuesday, TSMC shares in Taipei gained 2.08 percent to close at a record high of NT$1,225.00, after reaching an intraday high of NT$1,230.00. TSMC’s gains contributed about 200 points to the Taiex’s advance and pushed the electronics index up by 1.84 percent. However, other semiconductor stocks displayed mixed results.
IC packaging and testing services provider ASE Technology Holding Co. increased by 1.20 percent, closing at NT$169.00, and application-specific integrated circuit (ASIC) designer AIchip Technologies Ltd. rose by 0.64 percent to NT$3,940.00. Conversely, smartphone IC designer MediaTek Inc. declined by 1.32 percent to NT$1,490.00.
AI enthusiasm also benefited iPhone assembler and AI server maker Hon Hai Precision Industry Co., which rose by 1.20 percent to NT$210.00. Delta Electronics Inc., a supplier of power management solutions for AI devices, climbed 6.76 percent to NT$837.00.
Huang highlighted that ample liquidity further bolstered the Taiex’s gains, as foreign institutional investors continued to move funds into the region, anticipating a rate cut by the U.S. Federal Reserve. According to the TWSE, foreign institutional investors purchased a net NT$47.62 billion worth of shares on the main board Wednesday, following a net buy of NT$35.65 billion the previous session.
While the electronics sector propelled the Taiex higher, many nontech stocks lagged, although there were exceptions. Teco Electric and Machinery Co. surged 10 percent, the daily maximum, to NT$87.50. Huang noted that investors have high expectations that the company will benefit from its partnership with Hon Hai to boost AI data center capabilities.
In the old economy sector, Nan Ya Plastics Corp. decreased by 1.16 percent to NT$38.20, and Formosa Chemicals and Fiber Corp. fell by 1.03 percent to NT$28.70, while Formosa Plastics Corp. remained unchanged at NT$38.15. In the financial sector, which rose 0.55 percent, Fubon Financial Holding Co. gained 1.39 percent to NT$87.60, and Cathay Financial Holding Co. added 1.25 percent to NT$64.90.
Huang cautioned that the Taiex is approaching the nearest technical resistance at around 25,300 points, as much of the AI momentum has already been priced in.
