TLDRs;
- TSMC hit a record NT$1,400.00 close, propelling Taiwan’s Taiex index to an all-time high of 26,761.06.
- The AI chip boom continues to fuel demand for semiconductors, benefiting MediaTek, Winbond, and Nanya Technology.
- Hardware manufacturers like Quanta and Wistron saw solid gains, though Foxconn lagged behind.
- Traditional sectors, including plastics, steel, and finance, weakened as U.S. tariffs hurt old-economy industries.
Taiwan’s stock market soared to unprecedented heights on Friday as investors poured into technology shares, pushing the Taiex index to a record close of 26,761.06.
The rally was largely driven by a fresh surge in Taiwan Semiconductor Manufacturing Co. (TSMC), whose stock hit a new all-time closing high amid accelerating global demand for artificial intelligence (AI) chips.
The Taiex jumped 382.67 points, or 1.45%, marking another day of strong momentum for Taiwan’s tech-heavy market. Trading volume was robust, reaching NT$463.09 billion (US$15.23 billion), as both institutional and retail investors chased semiconductor and AI-related plays.
Market watchers attributed the rally to an ongoing global AI boom, inspired by the strong performance of U.S. chip designer Nvidia Corp.
“Investors continue to see enormous potential in AI development,” said Kevin Su, an analyst at Hua Nan Securities. “TSMC remains a cornerstone of that optimism, appearing attractively valued compared to its U.S. peers.”
TSMC and Chipmakers Surge on AI Demand
TSMC’s stock rose 2.56% to close at NT$1,400.00, marking its highest-ever closing price. The company’s gains alone contributed roughly 280 points to the Taiex’s overall rise.
The electronics sub-index also climbed 2.08%, reflecting strong investor appetite for semiconductor and AI-related stocks.
The buying frenzy quickly spread to other major chipmakers. MediaTek Inc., a leader in smartphone and 5G chip design, jumped 3.12% to end at NT$1,320.00. Memory chip producers also rode the wave, with Winbond Electronics Corp. soaring 7.78% and Nanya Technology Corp. climbing 4.14%, both benefiting from rising chip prices and improving global supply dynamics.
“The market is showing a broad AI spillover effect,” Su added. “Every company involved in the AI value chain, from chip design to hardware manufacturing, is seeing renewed investor attention.”
Hardware Makers Ride AI Server Boom
Hardware suppliers also saw notable gains as global demand for AI servers continued to rise. Quanta Computer Inc., a major producer of AI servers, advanced 2.04% to close at NT$300.00, while Wistron Corp. gained 2.68% to finish at NT$153.50.
However, Hon Hai Precision Industry Co. (commonly known as Foxconn) underperformed the sector, inching up just 0.44% to NT$226.50. Analysts said the modest gain reflected market caution ahead of upcoming U.S. economic data and potential global supply chain adjustments.
“Hardware firms tied to AI infrastructure are benefiting from long-term structural demand,” Su noted. “However, short-term volatility remains due to uncertainties surrounding U.S. tech policies and export restrictions.”
Non-Tech Stocks Lag Behind
While tech stocks thrived, non-technology sectors lagged as the effects of U.S. tariffs weighed on traditional industries. Formosa Plastics Corp. dropped 2.27%, while Formosa Chemicals & Fibre Corp. declined 3.00%. China Steel Corp., Taiwan’s largest steelmaker, fell 1.04%, signaling broader weakness in manufacturing and old-economy segments.
The financial sector also ended lower, slipping 0.63%. Fubon Financial Holding Co. declined 1.03% to NT$86.50, while Cathay Financial Holding Co. closed flat at NT$65.00.
Despite sectoral disparities, overall sentiment remained upbeat. According to the Taiwan Stock Exchange (TWSE), foreign institutional investors were net buyers of NT$16.96 billion worth of shares, signaling sustained global confidence in Taiwan’s semiconductor dominance.
Looking ahead, investors await the release of U.S. nonfarm payroll data, which could influence Federal Reserve policy and global liquidity conditions.
