TAIPEI (Taiwan News) — Taiwan’s benchmark stock index briefly moved above the 46,000-point level on Monday before giving up most gains as buying momentum weakened.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) rose 25.91 points, or 0.06%, to close at 45,380.52. Turnover returned above the NT$1 trillion (US$31.8 billion) mark, reaching NT$1.02 trillion, after falling below the level for the previous two sessions, according to Taiwan Index Plus.
Most of the market’s major index-weighted stocks traded lower. TSMC saw its gains narrow toward the close, ending 1.04% higher at NT$2,440, according to Anue.
Delta Electronics gained 0.53% to NT$1,890. MediaTek fell 2.55% to NT$3,825, Foxconn declined 0.42% to NT$236.5, and ASE dropped 1.03% to NT$670.
Optical lens maker Largan Precision hit its daily limit at NT$4,345 after announcing progress in its expansion into silicon photonics. The company said it had received mass-production specifications from its first co-packaged optics (CPO) customer.
CPO is an emerging silicon photonics technology that integrates optical components closer to AI processors. By using light-based communication, the technology enables more efficient data transmission while helping reduce power consumption in high-performance computing systems, according to Sinotrade.
GlobalWafers also hit its daily limit at NT$1,485, a record high, after securing a 10-year contract from Micron Technology. Under the agreement, Micron will provide NT$16 billion to support GlobalWafers’ US operations and expansion of production capacity.
Other silicon wafer-related stocks also attracted buying interest. Episil-Precision, Sino-American Silicon Products, Wafer Works, and Formosa Sumco Technology all reached their daily limits, while Episil Technologies gained 7.55%.
Silicon wafers are the basic material used in semiconductor manufacturing and are closely tied to production trends across advanced and mature chip segments. Continued demand for AI and high-performance computing applications has supported wafer orders and improved capacity utilization rates.
Drone-related stocks also continued gains. Aerospace Industrial Development, Thunder Tiger, Magnate Technology, Brinno, Baso Precision Optics, and Chenfull International all closed at their daily limits.
Four major companies under Formosa Plastics Group also performed well following positive revenue results. Formosa Plastics Corp. and Nan Ya Plastics Corp. both reached limit-ups, while Formosa Chemicals & Fiber and Formosa Petrochemical each gained more than 7%.
First Capital Management Chair Huang Yi-ting (黃詣庭) said the TAIEX opened higher following Friday's gains in US equities. A decline in South Korea’s stock market during the session triggered selling pressure across regional markets, while tensions in the Middle East also weighed on market sentiment, according to CTEE.
Huang added that while the market may face short-term pressure from renewed geopolitical concerns and consolidation after its recent gains, Taiwan stocks remain supported by corporate fundamentals. He said investors could monitor sectors related to memory chips, silicon wafers, and mature semiconductor processes.
Hung Pei-chen (洪珮甄), manager of the Fubon Taiwan Technology Tracker Fund, said market attention has shifted from liquidity-driven gains to corporate earnings as listed companies continue to release June revenue figures and second-quarter financial results. Huang added that TSMC's upcoming earnings conference will be a key market focus.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
