TAIPEI (Taiwan News) —Taiwan’s benchmark stock index closed Tuesday’s session higher, wrapping up the first half of the year on strong gains across major electronics and semiconductor stocks.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, rose as much as 1,637.96 points during the session, marking its third-largest intraday point gain. The index closed up 1,126.01 points at 46,125.91, according to Taiwan Index Plus.
Turnover totaled NT$1.2 trillion (US$37.7 billion). The total market capitalization of listed companies stood at NT$150.5 trillion, according to the Taiwan Stock Exchange.
For the month, the TAIEX gained 1,392.97 points. It also recorded its largest single-quarter and first-half point gains on record, rising 14,402.92 points for the quarter and 17,162.31 points for the first half, according to CNA.
Large index-weighted stocks, which have the greatest influence on TAIEX movements, posted notable advances. TSMC reached an intraday high of NT$2,475 before closing up 1.69% at NT$2,410, contributing about 317 points to the TAIEX.
ASE rose 8.45% to NT$680. MediaTek, which foreign institutional investors have recently projected could exceed NT$10,000 per share, closed up 8.57% at NT$4,245, according to CTEE and Anue.
Delta Electronics gained 2.36% to NT$1,950. Foxconn added 1.83% to NT$251.
Silicon wafer producers, which supply a key base material used in chip manufacturing, saw gains as expectations for an industry recovery increased. GlobalWafers closed at its daily limit of NT$1,005, alongside Wafer Works and Formosa Sumco Technology, according to Stockfeel.
Taiwan’s silicon wafer industry is showing early signs of recovery as producers signal potential price increases. Analysts expect the sector to enter a new growth cycle, supported by stronger demand for mature-node chips and continued expansion of artificial intelligence applications, according to CTEE.
The passive component sector also advanced broadly, led by industry leader Yageo, which closed at its daily limit of NT$1,140. Walsin Technology, Kaimei Electronic, Lelon Electronics, Holy Stone Enterprise, Tai-Tech Advanced Electronics, Hua Jung Components, Prosperity Dielectrics, Taiwan Chinsan Electronic Industrial, and Honey Hope Honesty Enterprise also hit daily limits.
The passive component market is seeing a widening supply-demand gap this year, driven by demand from AI servers and energy transition. Pocket Securities, citing multiple brokerage outlooks, said the imbalance is expected to last longer than a typical cycle, according to Yahoo Stocks.
Power semiconductor companies also recorded strong gains. Panjit International, Mospec Semiconductor, Eris Technology, Episil Technologies, and Sinopower Semiconductor all reached daily limits, while Taiwan Semiconductor rose 9.55%.
Power semiconductors are key components in electronics systems that manage electricity distribution and conversion. Upgrades in AI server power architecture have increased demand, and analysts say some products could become the next category to face supply constraints, following tightness seen in memory chips and passive components, according to Sinotrade.
Taiwan’s major integrated circuit substrate makers also continued gains. Unimicron Technology, Kinsus Interconnect Technology, Nan Ya Printed Circuit Board, and Zhen Ding Technology Holding all closed at limit-ups.
Investors viewed strong preliminary results from Nan Ya PCB as further evidence of a recovery in the advanced substrate cycle. Market attention also turned to other major substrate makers, according to Sinotrade.
LED maker Para Light Electronics closed at its daily limit for a sixth consecutive session after reporting strong earnings. The company's May earnings per share increased about 400% from the same period a year earlier, according to CMoney.
Market participants attributed the buying interest to improving fundamentals and ongoing business transformation. Analysts have previously noted that Para Light’s focus on higher-margin customized products, including surface-mount devices and optical modules, together with investment income, has supported earnings growth.
Traditional industries showed mixed performance. The glass sector index rose 9.51%, with Taiwan Glass reaching its daily limit.
Continued shortages of high-end electronic-grade fiberglass cloth, with demand expected to remain strong through 2027, have drawn investor attention to fiberglass-related companies. Taiwan Glass has benefited from expectations of strong market share and capacity expansion in high-end fiberglass cloth, according to CMoney.
The plastics sector index gained 6.33%, while the cable sector index rose 3.76%. Cement, food, textile, and rubber indexes closed lower.
E Sun Securities fund manager Wang Wei-che (王偉哲) said funds borrowed for stock investment in the Taiwan market have exceeded NT$610 billion, indicating active investor participation and elevated positioning. He said a larger correction in global equity markets could trigger short-term profit-taking or selling driven by borrowed funds, increasing volatility, according to CTEE.
Analyst Liu Kun-hsi (劉坤錫) said investors remain concerned about the possibility of US interest rate increases, while uncertainty over the outlook for AI investment has also emerged. Although the TAIEX closed above both its five-day and monthly moving averages on Tuesday, he said the market remains in a consolidation phase, with large-cap stock performance likely to remain the key driver of the index.
With Taiwan’s earnings season set to begin in July, he said economic conditions and corporate earnings are expected to remain drivers of the market. Wang said investors may consider increasing their stock holdings once market volatility stabilizes.
He added that continued AI investment and strengthening semiconductor demand have supported positive expectations for US technology company earnings. Recent market fluctuations mainly reflect valuation adjustments and capital flows rather than a change in underlying economic conditions, with AI demand expected to continue supporting sentiment over the longer term.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
