TAIPEI (Taiwan News) — Taiwan’s stock market closed at a record high on Tuesday, supported mainly by gains in TSMC.

The Taiwan Capitalization Weighted Stock Index (TAIEX) rose 120.7 points to finish at 31,759.99. Turnover totaled NT$777.1 billion (US$24.5 billion), according to CNA and CTEE.

TSMC gained 0.85% to close at NT$1,775, reaching a record closing price. Delta Electronics added 0.89% to NT$1,130, MediaTek ended flat at NT$1,485, and Foxconn fell 2.61% to NT$223.50.

Memory-related shares showed mixed performance following reports that the US is considering a 100% tariff on memory products manufactured outside the US. The proposed measure is expected to affect South Korean suppliers and could also have implications for Taiwanese firms.

Nanya Technology reached its daily limit-down early in the session before narrowing losses to close down 1.09% at NT$272. Winbond Electronics fell 4.29% to NT$111.50.

Adata, Etron Technology, and Elite Semiconductor Microelectronics Technology also declined. In contrast, PSMC hit its daily limit-up and Macronix International gained 4.21%.

Probe card suppliers recorded broad gains. WinWay Technology rose 8.09% to NT$3,740, surpassing Wiwynn to become the second-highest-priced stock on the market.

Chunghwa Precision Test reached its daily limit-up, while MPI gained 5.83%. Probe cards are key tools in semiconductor manufacturing, used to test wafers and ensure each chip meets quality standards before packaging, according to Business Next.

Defense-related stocks advanced after the Ministry of National Defense on Monday released procurement plans covering seven categories of weapons, according to CTEE. Lungteh Shipbuilding reached its daily limit-up, while CSBC, Thunder Tiger, and Coretronic posted gains.

Glass-related shares also showed gains due to ongoing tight supply of fiberglass cloth, a material essential in electronics. Taiwan Glass hit its daily limit-up for a second consecutive session, trading 410,000 lots, or 410 million shares, with 100,000 buy orders unfilled at the close.

Analysts said US midterm elections are helping sustain market momentum, noting that Taiwan and US equity markets remain closely correlated. This linkage continues to support expectations for further gains, according to CTEE.

Market estimates place TSMC’s price target for this year between NT$1,900 and NT$2,600. Analysts said the broader market, with TSMC contributing significantly to gains, could continue to advance if the stock approaches NT$2,000.

While US tariff reductions on Taiwan are viewed as supportive for traditional industries, analysts cautioned that any economic recovery may take time to materialize, limiting near-term performance. Construction stocks are also expected to lag, as measures aimed at curbing property speculation are unlikely to be relaxed.

PGIM Taiwan Market Capitalization Momentum 50 ETF manager Yang Li-kai (楊立楷) said investor sentiment remains steady ahead of earnings releases from major US companies. Financial stocks led the market last week, with technology shares expected to play a larger role in the coming sessions.

AI-related shares are expected to remain the main growth drivers this year, although analysts said investors are likely to place greater emphasis on earnings performance. They added that despite rapid expansion across the sector, localized valuation pressures are unlikely to alter the broader industry trend.

Yang said expectations for technology-sector profit growth remain elevated. However, with many technology stocks trading near higher valuation levels, upcoming earnings results and forward guidance will be key factors influencing sentiment across Taiwan’s technology supply chain.

This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.