TAIPEI (Taiwan News) — Taiwan's benchmark stock index swung by more than 1,000 points on Tuesday before closing nearly unchanged, as losses in heavyweights were offset by investors searching for the market’s next leading sectors.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) fell below 43,000 points before reaching an intraday high of 43,912.77. It closed down 25.75 points, or 0.06%, at 43,360.66, according to Taiwan Index Plus and CTEE.
Turnover increased to NT$1.03 trillion (US$31.8 billion) from NT$844.5 billion in the previous session. The total market capitalization of listed companies stood at NT$141.6 trillion, according to the Taiwan Stock Exchange.
Among the index’s most heavily weighted stocks, TSMC fell 2.11% to close at NT$2,320. The chipmaker recorded the largest decline in market capitalization during the session, losing NT$1.3 trillion to end at NT$60.16 trillion, according to Anue and Sinotrade.
MediaTek declined 1.15% to NT$3,865, Foxconn dropped 1.19% to NT$250, and ASE fell 4.1% to NT$585. Buying interest shifted toward Delta Electronics, which gained 2.53% to close at NT$1,620.
Glass fiber cloth and upstream printed circuit board (PCB) material suppliers led market gains. Fulltech Fiber Glass, Taiwan Glass, and Baotek Industrial Materials all hit their daily price limits.
Strong AI-related demand has tightened supplies of specialized glass fiber materials used in PCBs, which support electronic components and provide electrical connections between them. As next-generation AI chips require PCBs with more layers and overseas suppliers struggle to expand capacity quickly enough, expectations of higher prices have drawn investor attention to the sector.
Low-Earth orbit (LEO) satellite-related stocks were also among the session’s top performers. Universal Microwave Technology, Taiwan Union Technology, and Win Semiconductors hit their daily price limits, while Compeq Manufacturing, Unitech Printed Circuit Board, and Fic Global recorded notable gains.
Analysts said Taiwan’s LEO satellite supply chain could enter a new phase of growth as applications including commercial satellites, defense space programs, and direct-to-device communications expand. They added that global efforts to diversify supply chains beyond a single region could create additional opportunities for Taiwanese companies, with Universal Microwave Technology seen as one of the sector’s leading companies, according to CTEE.
Co-packaged optics (CPO)-related stocks attracted buying interest after Nvidia said its CPO technology had entered mass production. Largan Precision, which recently expanded into the field, closed at its daily price limit of NT$4,355.
Ezconn, LandMark Optoelectronics, Browave, LuxNet, and several other related companies also hit their daily price limits. CPO is an emerging silicon photonics technology that integrates optical components closer to AI processors, enabling faster data transmission while reducing power consumption through light-based communications, according to Sinotrade.
The memory sector continued its recent recovery, led by Nanya Technology, which hit its daily price limit. Winbond Electronics and Macronix International also closed at their daily limits.
The rally was supported by global memory manufacturers Samsung Electronics, Micron Technology, and SK Hynix allocating more of their standard memory production capacity to higher-margin high-bandwidth memory and DDR5 products. The shift has contributed to supply shortages in specialty memory products, including DDR3, DDR4, and NAND flash memory. Among specialty memory chip designers, Elite Semiconductor Microelectronics Technology, Etron Technology, and Ap Memory Technology all hit their daily price limits.
As funds moved into technology shares, defensive sectors, which are generally viewed as more stable during periods of market volatility, faced selling pressure. In the automotive sector, Yulon Motor declined 1.36%, Hotai Motor fell 1.13%, and Mobiletron Electronics lost 1.53%. Financial holding stocks also moved lower.
Analysts said that although TSMC’s decline weighed on the TAIEX, the broader market remained relatively stable rather than experiencing broad-based selling. Investors continued to favor sectors with strong fundamentals, including memory, co-packaged optics, and AI servers, according to CTEE.
They said the market is searching for new growth drivers. If TSMC stabilizes, large-cap stocks regain momentum, and sector rotation continues, Taiwan equities could maintain their upward trend.
Analysts also noted that foreign investors continue to hold more than 90,000 futures contracts positioned to benefit from a decline in the index, suggesting that the market may require more time to consolidate. They said that once selling pressure from investors who bought at higher levels gradually eases and the monthly moving average turns upward, the market’s overall outlook would become healthier.
Analysts said investors should remain selective, favoring financially stronger companies with active trading and long-term growth potential while avoiding weaker stocks. They recommended focusing on large-cap AI-related companies with strong trading activity and businesses with long-term growth potential.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
