TAIPEI (Taiwan News) — Taiwan’s benchmark stock index on Wednesday held above 45,000 points despite declines in US equities overnight.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) closed up 397.35 points, or 0.88%, at 45,518.07. Turnover totaled NT$858.7 billion (US$26.7 billion), according to Taiwan Index Plus and CTEE.
Among the index’s most heavily weighted stocks, TSMC closed 0.84% higher at NT$2,415. Foxconn, which reported record second-quarter revenue of NT$2.5 trillion after the market closed, rose 2.66% to NT$270, according to CTEE.
MediaTek fell 0.12% to NT$4,015. Delta Electronics declined 0.83% to NT$1,790, and ASE fell 1.27% to NT$621, according to Anue.
Silicon wafer stocks performed strongly following a period of correction. GlobalWafers, Sino-American Silicon Products, Wafer Works, and Formosa Sumco Technology all reached daily limit-ups, while Episil-Precision and Episil Technologies posted gains.
Silicon wafers serve as the foundational base for manufacturing chips. Analysts said growing demand from AI servers and advanced chipmaking could push the global silicon wafer supply shortfall to 8% by the end of this year, 15% by the end of next year, and 24% by the end of 2028, according to CTEE.
US optical communications equipment maker Lumentum reported its fourth-quarter fiscal 2026 financial results overnight, with revenue increasing 109% year on year and its financial guidance exceeding market expectations. The results provided support for the sector, with LuxNet, LandMark Optoelectronics, Ezconn and East Tender Optoelectronics all reaching their daily limit-ups.
Silicon photonics relies on light-based signals instead of traditional electrical signals to transmit data. The technology has drawn increasing attention as AI applications expand, supporting faster data transfer while generating less heat in data-intensive environments, according to Business Next.
Foreign investors issued new buy ratings for PCB makers Gold Circuit Electronics and Unimicron Technology, lifting the sector. Unimicron rose 0.81% to return to NT$1,000.
Co-tech Development, Tripod Technology and Nan Ya PCB all reached daily limits. PCBs provide the foundation for electronic products, using embedded copper circuits to connect components and carry electrical signals and power between them, according to Business Weekly.
Bicycle stocks weakened, undergoing a correction at elevated levels as the sector lacked strong short-term catalysts. Giant Manufacturing fell 2.24%, Merida Industry declined 1.06%, and Ideal Bike dropped 3.4%, according to Sinotrade.
Institutional investors said the market remains cautious about chasing higher prices, noting that the TAIEX has been rebounding on relatively low trading volume. They said the rotation among small- and mid-cap stocks was healthy, as investors shifted toward companies with strong growth prospects and fundamentals.
Analysts identified two factors that could weigh on the market. Foreign investors still hold more than 88,000 futures contracts positioned for declines in Taiwan stocks, raising concerns that they could contribute to short-term market volatility.
The US is also scheduled to release its July consumer price index. Inflation above market expectations could put renewed pressure on interest rates and technology stock valuations.
Analysts suggested buying on weakness while reducing positions in weaker stocks during rebounds. They identified advanced manufacturing processes, PCB substrates, power management, server chassis and rails, and robotics as sectors to watch.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
