TAIPEI (Taiwan News) — Taiwan's benchmark stock index fluctuated on Friday, opening lower before ending slightly higher on rotation into traditional industries and non-artificial intelligence stocks.
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell as much as 863.47 points in early trading to an intraday low of 45,880.69. As losses in TSMC narrowed and bargain buying emerged in large-cap stocks, the index rebounded to close up 36.46 points at 46,780.62, according to Taiwan Index Plus and CTEE.
Turnover totaled NT$1.02 trillion (US$31.9 billion). The total market capitalization of listed companies stood at NT$152.66 trillion, according to the Taiwan Stock Exchange.
For the week, the TAIEX gained 2,208.86 points, or 4.96%.
Among the largest index-weighted stocks, which have the greatest influence on the TAIEX, TSMC closed down 0.81% at NT$2,445. Buying interest shifted to Delta Electronics, which rose 5.33% to NT$2,075 and provided the largest support to the broader market.
MediaTek fell 3.45% to NT$4,195, while ASE Technology declined 5.28% to NT$682. Foxconn rose 0.63% to close at NT$240.5.
The silicon wafer sector continued to advance on tightening supply conditions and industry recovery. Industry leader GlobalWafers gained 4.15% to a record closing high of NT$1,255.
Wafer Works recorded its fourth consecutive limit-up session, closing at NT$163. Formosa Sumco Technology rose 8.11% to NT$440.
Silicon wafers, the base material used in semiconductor manufacturing, are widely viewed as an indicator of demand across both mature and advanced process technologies. Demand related to AI and high-performance computing has supported wafer orders and utilization rates, while the mature-process chip market has stabilized following several years of inventory corrections.
The memory sector, which had been under pressure in recent sessions, showed signs of stabilizing after South Korean industry leader SK Hynix rebounded. Winbond Electronics, Nanya Technology, Phison Electronics, Adata Technology, Transcend Information, Team Group, and Apacer Technology all reversed earlier losses to finish higher.
Investor sentiment in the printed circuit board and substrate sectors was affected by market reports. Although substrate supply remains tight, Samsung Electronics and SK Hynix have sought price reductions in recent negotiations with substrate suppliers and pushed back planned first-quarter price increases of around 3-4%, according to USTV.
This raised concerns that other major customers could seek similar concessions. Taiwanese supplier Kinsus Interconnect said it had not observed similar developments among domestic manufacturers.
Unimicron Technology fell 1.02%, while Kinsus and Nan Ya PCB recovered from early losses to close higher. Abonmax and Lcy Technology both finished at daily limit-ups.
Buying interest remained strong in the passive components sector. Although leader Yageo slipped 0.95%, most other stocks in the sector maintained gains, with Thinking Electronic Industrial, Holy Stone Enterprise, and Prosperity Dielectrics closing at limit-ups.
Market funds also rotated into traditional industries and government policy-related stocks, which were seen as more stable in periods of market uncertainty. The textile, chemical, shipping, and paper sector indices each gained more than 3%, making them the day's strongest-performing sectors.
Drone-related stocks also drew buying interest on expectations of increased defense drone spending. Coretronic, National Aerospace Fasteners, Magnate Technology, Aero Win Technology, Brinno, and Thunder Tiger all finished at daily limits.
Investors continued to favor relatively lower-valued traditional industry stocks, extending the petrochemical and chemical sectors' recent gains. Formosa Chemicals & Fiber, Usi, Asia Polymer, Taita Chemical, Taiwan Styrene Monomer, Upc Technology, and China Petrochemical Development all closed at limit-ups.
Chou Wei-yun (周暐耘), manager of the Franklin Templeton SinoAm First Fund, said recent weakness in AI-related stocks followed Meta's decision to lease out excess computing capacity. Investors interpreted the move as a sign that AI computing resources had become oversupplied, according to CTEE.
However, Chou said the decision instead reflects continued strong demand for computing power. He views Meta's move as an effort to generate additional revenue by monetizing temporarily unused computing capacity.
Chou added that the recent market pullback appeared to be a correction driven by market misinterpretation, together with profit-taking after the recent rally, resulting in short-term selling pressure. TSMC's investor conference, scheduled for July 16, is expected to be the market's next major focus.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
