Taipei: Shares in Taiwan closed at a new high, soaring over 1,200 points Monday, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) smashed previous closing levels amid optimism over global AI development, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 1,276.31 points, or 2.75 percent, at 47,741.51 after moving between 46,679.57 and 47,871.19. Turnover totaled NT$1.44 trillion (US$45.20 billion).
According to Focus Taiwan, investors were influenced by a rally among chip stocks in the United States last week and pursued semiconductor stocks in Taiwan. A significant factor was the Philadelphia Semiconductor Index's 6.42 percent surge on Thursday before the public holiday on Friday. The optimism was primarily driven by expectations of strong global demand for AI applications, with TSMC gaining attention for its robust high-end chip sales.
TSMC's shares, which represent over 40 percent of the total market value, rose 4.15 percent to close at NT$2,510.00. This contributed approximately 800 points to the Taiex's rise and boosted the electronics index by 3.28 percent. In the semiconductor sector, ASE Technology Holding Co. saw a 10 percent increase, the maximum daily rise, closing at NT$674.00, fueled by interest in advanced IC assembly and testing services.
A supply shortage continued to drive up memory chip supplier Nanya Technology Corp., which surged 10 percent to close at NT$505.00. United Microelectronics Corp., a smaller contract chipmaker, also experienced a 10 percent jump, closing at NT$160.00 after a FundaAI research report indicated collaboration with U.S.-based Intel Corp. to produce 3-nanometer process chips in Arizona.
The AI-driven buying interest extended to hardware device suppliers and printed circuit board (PCB) makers. WUS Printed Circuit Co. surged 10 percent to close at NT$226.00, while Gold Circuit Electronics Ltd. ended up 2.95 percent at NT$1,395.00. Within the old economy sector, select petrochemical stocks also benefited from the AI uptrend as they began manufacturing materials like glass cloth for tech gadgets. Nan Ya Plastics Corp. soared 10 percent to close at NT$152.50, partly due to its status as the parent company of Nanya Technology.
Government investments in improving electricity grid networks led to gains in related companies. Shihlin Electric and Engineering Corp. rose 1.45 percent to close at NT$245.00, and Teco Electric and Machinery Co. gained 3.14 percent to end at NT$72.20. However, the financial sector underperformed the Taiex, declining by 0.81 percent. Cathay Financial Holding Co. lost 2.16 percent to close at NT$113.00, while Fubon Financial Holding Co. ended up 0.36 percent at NT$138.00.
Looking ahead, Hua Nan Securities analyst Kevin Su expressed confidence in the market's momentum. "With the quarter coming to an end, I expect institutional investors to buy stocks to dress up their books, and the index could soon challenge 48,000 points," Su said. The Taiwan Stock Exchange reported that foreign institutional investors purchased a net NT$68.46 billion of shares on the main board Monday.