TAIPEI (Taiwan News) — Taiwan’s stock market closed higher Thursday after overnight gains in US markets boosted investor sentiment and supported technology stocks.
The Taiwan Capitalization Weighted Stock Index (TAIEX) rose 377.2 points to close at 41,751.75 after reaching an intraday high of 42,205.62. Turnover totaled NT$1.21 trillion (US$38 billion), according to CNA and CTEE.
TSMC rose 2.25% to NT$2,270. Foxconn reversed earlier gains to close down 2.59% at NT$244.5, Delta Electronics slipped 0.46% to NT$2,155 and MediaTek fell 2.58% to NT$3,405.
Memory-related shares advanced after Samsung Electronics and its labor union failed to reach a wage agreement on Wednesday. More than 50,000 employees are expected to begin an 18-day strike on May 21, raising market expectations that Taiwanese suppliers could receive additional orders, according to TechNews.
Nanya Technology hit the daily limit-up of NT$353 during trading, setting a record high, before closing up 6.23% at NT$341. Winbond Electronics also reached limit-up at NT$134, while Macronix International and PSMC posted gains.
Passive component makers continued their upward trend after leading Japanese and South Korean multilayer ceramic capacitor manufacturers were reported to be operating at full capacity, raising expectations of spillover orders for Taiwanese suppliers. Domestic brokerages also said industry restructuring could lead to an MLCC supply shortage as early as the second half of 2027, according to CTEE.
Walsin Technology hit limit up at NT$220, its highest level since August 2021, bringing its gains this month to more than 60%. Yageo also reached limit up at NT$462 and has climbed more than 45% so far this month.
Largan Precision hit the daily limit up at NT$3,135 during trading. This marked its highest level in nearly 18 months.
Investors are focusing on the optical lens maker's expansion into co-packaged optics, a technology that transmits data using light to improve speed and efficiency. The company recently said that field attachment units, a key component in the sector, have been designated a priority area, with sample shipments already underway, according to LTN.
Networking equipment maker Accton Technology also hit limit up at NT$2,675 after major customer Cisco reported stronger-than-expected third quarter earnings. Semiconductor testing interface provider Mpi rose to the daily limit-up of NT$6,290, surpassing NT$6,000 for the first time.
Rubber shares also moved higher, including Taiwan Synthetic Rubber and Cheng Shin Rubber. Concerns over tensions in the Middle East have weakened demand expectations for petroleum-derived synthetic rubber, prompting a shift toward natural rubber, whose prices recently climbed to a nine-year high, according to Global Views Monthly.
In contrast, Shinfox Energy fell limit-down after the Taiwan Stock Exchange approved the renewable energy provider's delisting effective June 23. The decline also weighed on related group companies, including Cheng Uei Precision Industry and Foxwell Power.
Analysts said the benchmark index has approached previous highs and key psychological resistance levels. They said the market remains in an upward consolidation trend despite short-term profit-taking pressure, according to CTEE.
They added that AI-related stocks, semiconductor firms, passive component makers, and smaller electronics shares continued to drive market momentum. Investor attention is expected to focus on whether capital continues flowing into leading sectors and whether heavily traded stocks can maintain strong volume and price performance.
Institutional investors said Wall Street’s optimism toward AI and technology shares has remained strong despite concerns over persistent inflation and signals from the US Federal Reserve that interest rates may remain higher. They added that upcoming events, including TSMC’s technology symposium, Nvidia’s earnings report, and Computex in June, are expected to continue supporting sentiment toward Taiwan’s technology sector.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
