TAIPEI (Taiwan News) — Taiwan’s stock market ended its upward trend on Friday as profit-taking appeared after several record highs earlier in the week.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, closed down 329.84 points at 41,603.94 after trading at elevated levels earlier in the session. Turnover totaled NT$1.25 trillion (US$39.7 billion), according to CNA and CTEE.
The index rose 2,677.31 points for the week, despite Friday's decline. The session was described as a technical correction after a strong rally, with fast rotation of capital across sectors and pressure on large-cap stocks, according to Sinotrade.
TSMC fell 0.87% to NT$2,290. Delta Electronics declined 3.51% to NT$2,200, while Foxconn lost 1.38% to NT$250.
In contrast, integrated circuit design leader MediaTek advanced 6.14% to NT$3,630 after touching a record intraday high of NT$3,670. This supported sentiment across the IC design sector.
Realtek Semiconductor, Novatek Microelectronics, and Parade Technologies all reached their daily limit-ups. IC design refers to defining chip functions and creating circuit layouts using design software before manufacturing, according to Stockfeel.
In high-priced stocks, semiconductor materials developer Advanced Echem Materials and high-tech facility engineering service provider United Integrated Services both moved back above NT$1,000 per share. The number of TAIEX-listed stocks trading above the NT$1,000 level currently stands at 48.
Aspeed Technology, the highest-priced stock in the TAIEX, declined 5.23% to NT$16,955. King Slide Works, a metal rail and slide manufacturer, reached its daily limit-up at NT$5,320 after reporting strong first-quarter earnings.
Passive component stocks remained in focus, supported by high levels of capacity use among leading manufacturers in Japan and South Korea. Market participants pointed to potential spillover order opportunities for Taiwanese suppliers, according to CMoney.
Holy Stone Enterprise and Prosperity Dielectrics reached their limit-ups. Yageo gained 4.71%.
Electronic distribution stocks also strengthened. Wt Microelectronics hit its limit-up after signaling stronger-than-expected second-quarter performance.
This also lifted peer Wpg Holdings, which also reached limit-up. Spirox, Edom Technology, and Zenitron moved higher.
GlobalWafers and Wafer Works in the silicon wafer sector both closed higher. SEMI data shows that global silicon wafer shipments in the first quarter of 2026 rose 13.1% year on year, pointing to a structural recovery in the industry and supporting continued interest in upstream materials stocks, according to CTEE.
Memory-related stocks came under pressure, with Macronix International and Winbond Electronics both falling more than 6%. Nanya Technology declined 4.53%.
Mature-node semiconductor production firms moved lower following recent fund inflows into the sector. UMC fell 5.39%, while Vanguard International Semiconductor dropped 9.7%.
Market expectations have pointed to tighter supply in mature-node chips, typically 28 nanometers and above, as TSMC continues to prioritize advanced process production. This may leave relatively less capacity for mature-node output and could support pricing conditions, according to FTNN.
In the substrate segment, Nan Ya Printed Circuit Board, Unimicron Technology, and Kinsus Interconnect Technology declined as investors remained cautious about inventory adjustments and demand visibility. Market estimates suggest AI server shipments could grow significantly over the next three years, supporting long-term PCB industry growth despite near-term weakness in share performance, according to Mirror Media.
Concerns over potential specification changes in Nvidia’s next-generation GPU ecosystem continued to weigh on sentiment in the cooling sector. Asia Vital Components remained under pressure, while Jentech Precision Industrial extended recent declines as investors awaited further guidance from its upcoming earnings briefing.
Senior analyst Tsai Ming-han (蔡明翰) said the index showed signs of short-term overheating following a rapid upward trend. He added that underlying sentiment remains supported by expectations for AI-related demand from global cloud service providers and semiconductor clients.
Overall, analysts said the AI theme remains intact, while the market is entering a consolidation phase as recent gains are absorbed. Capital rotation across AI-related supply chain segments, including servers, printed circuit boards, cooling systems, power components, and advanced packaging, continues to provide support for broader market activity, according to CTEE.
From a technical perspective, the index is expected to find short-term support near its five-day and 10-day moving averages. Stabilization at these levels is viewed as a potential base for further movement after the current consolidation phase.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
