Taipei: Shares in Taiwan saw an increase as Taiwan Semiconductor Manufacturing Co. (TSMC) reached a record high, following reports that the chipmaker plans to raise prices for its advanced chips. This development pushed the Taiex, Taiwan Stock Exchange's benchmark index, up by 254.87 points, or 0.89 percent, to close at 28,810.89. The index fluctuated between 28,595.35 and 28,841.64 throughout the day, with a total turnover of NT$439.098 billion (US$13.97 billion).
According to Focus Taiwan, TSMC's stock rose by 1.32 percent to close at a record NT$1,530.00, contributing approximately 160 points to the Taiex's rise and boosting the electronics index by 1.10 percent. The optimism around TSMC's sales prospects stemmed from local media reports suggesting price hikes for high-end chips starting January 1 due to a tight global supply.
Concord Securities analyst Kerry Huang noted that if the price hike speculation is accurate, TSMC is likely to continue experiencing strong sales growth next year, and investors should closely monitor its guidance. TSMC is set to hold an investor conference on January 15 to provide guidance for the first quarter of 2026 and the entire year. The company has projected a near 35 percent sales growth in U.S. dollar terms for 2025.
Other semiconductor heavyweights also performed well, with MediaTek Inc. rising 2.53 percent to NT$1,420.00, and ASE Technology Holding Co. gaining 4.37 percent to NT$251.00. In the tech sector, Hon Hai Precision Industry Co. climbed 2.44 percent to NT$231.00, while Quanta Computer Inc. remained stable at NT$263.00.
Innolux Corp. surged 10 percent, the maximum daily increase, closing at NT$14.85 after securing orders for its advanced fan-out panel-level packaging services for chips in the SpaceX supply chain.
Buying interest extended to select old-economy stocks, with Taiwan Glass Industry Corp. rising 2.85 percent to NT$36.10, and Nan Ya Plastics Corp. increasing 2.09 percent to NT$58.70 due to strong demand for tech materials. The financial index rose 0.37 percent, with Fubon Financial Holding Co. advancing 1.24 percent to NT$98.20, and Cathay Financial Holding Co. gaining 1.60 percent to NT$76.00.
Huang added that with ample market liquidity, the Taiex might challenge the 29,000-point level by year's end. On Monday, foreign institutional investors bought a net NT$9.27 billion worth of shares on the main board.