TAIPEI (Taiwan News) — Taiwan’s benchmark stock index on Wednesday closed above 46,000 points for the first time, setting both intraday and closing records.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, reached an intraday high of 46,552.16 points. It closed up 901.85 points to end at 46,459.16 points, according to CNA and CTEE.
Turnover totaled NT$1.45 trillion (US$46.2 billion). The combined market capitalization of listed companies reached NT$151.55 trillion, according to the Taiwan Stock Exchange.
TSMC rose to a new intraday high of NT$2,440 before closing up 1.89% at NT$2,425. MediaTek increased 0.44% to NT$4,455.
Foxconn gained 2.49% to NT$309 after announcing a strategic partnership with French artificial intelligence firm Bull on Monday. The two companies plan to jointly develop AI and cloud infrastructure for European and global markets, with initial investment exceeding NT$4.38 billion, according to Yahoo Stocks.
Delta Electronics advanced 4.03% to NT$2,455 as investor interest continued in power management and energy infrastructure themes. Chair Cheng Ping (鄭平) said more AI applications will be deployed in local enterprise systems, which is expected to drive additional demand for energy-related infrastructure.
The momentum extended across related stocks. Shihlin Electric & Engineering, Chung-Hsin Electric & Machinery Manufacturing, Fortune Electric, and Allis Electric all hit daily limit-ups.
In the display panel sector, AUO and Innolux both hit limit-ups, while HannStar Display rose 5.69%. Innolux and AUO were the top two most actively traded stocks, reflecting increased attention to the industry’s potential role in semiconductor supply chains.
Analysts said the display industry may enter a structural transition phase this year as AI-era chip designs raise precision requirements across the electronics ecosystem and chip packaging needs reach a critical point. Traditional wafer-level packaging faces cost and capacity constraints, with fan-out packaging technologies, closely linked to panel manufacturing, emerging as potential alternatives, according to Sinotrade.
Silicon photonics-related stocks also performed strongly, with LandMark Optoelectronics, Browave, Fiber Optic Communications, Ezconn, ShunSin Technology, and TrueLight all reaching daily limits. The market has recently established a shift in data center connectivity design, with copper used for short-range intra-rack connections and optical solutions used for longer-distance interconnects, according to CMoney.
Financial holding stocks rose, supported by recent strong institutional buying. CTBC and Kgi both hit daily limits, Hua Nan rose 6.9%, First gained 3.02%, and Cathay added 2.91%.
The memory sector weakened as investors took profits following recent gains. Nanya Technology, Windbond Electronics, Macronix International and PSMC declined.
Mega International Investment Consulting Deputy General Manager Huang Kuo-wei (黃國偉) said market rotation has moved from AI-focused electronics into broader electronics and then into non-electronics sectors, suggesting a more balanced structure. He added that the rotation into previously lagging shares could indicate a pause in the current upward trend.
President Capital Management Chair Li Fang-kuo (黎方國) said the market is supported by multiple factors, including limited exposure to geopolitical risk and oil price fluctuations, inflows from foreign investors into equity exchange-traded funds, and continued technology-related catalysts. He said there is no clear indication of a market peak, according to CTEE.
Taiwan Cooperative Securities Investment Consulting said the TAIEX has recently set repeated highs supported by Computex-related sentiment. It noted that institutional investors have been taking more cautious positions.
Trading activity has eased at higher levels, suggesting a more measured market tone. It added that much of the positive news may already be reflected in prices, which could lead to increased short-term fluctuations as some investors take profits.
Li said long-term investment does not require attempts to time the market. He added that AI-related sectors remain central, including memory, printed circuit boards, silicon photonics, advanced substrates, and TSMC equipment suppliers.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
