TSMC Reclaims NT$2,500 as Taiwan Stock Market Surges Over 500 Points in Early Trading, Retesting 48,000 Level

Chip stocks extended their strong momentum, and with the U.S. and Iran resuming negotiations during the UN General Assembly driving international oil prices lower, Taiwan’s stock market showed impressive strength in early trading on the 23rd, with the index breaking through 48,300 points and surging more than 500 points to reclaim the 48,000-point psychological level.

The Taiwan stock market opened at 47,894.77 points, up 94.6 points. Within half an hour of trading, the index continued to climb, reaching an intraday high of 48,341.56 points, a gain of over 1%. The market had already set a record closing high of 47,800.17 points on the 22nd, and today’s bulls pushed further, challenging the all-time intraday high.

Index heavyweight Taiwan Semiconductor Manufacturing (2330.TW) served as the core driver of this rally. The company’s American Depositary Receipts (ADRs) rose 1.54% the previous day, and TSMC opened at NT$2,475 in early trading today before reclaiming the NT$2,500 level, up NT$40 or 1.63%, with its market capitalization climbing to NT$64.83 trillion (approximately $2.0 trillion). TSMC alone contributed roughly 317 points to the broader index.

The Philadelphia Semiconductor Index surged 256.65 points, or 2.06%, the previous day to close at 12,689.82, serving as the most direct catalyst for Taiwan’s electronics sector. Taiwan Index Futures overnight trading rose 272 points in tandem, foreshadowing today’s strong opening in the spot market.

Among other heavyweight electronics stocks, MediaTek (2454.TW) opened at NT$5,220, up NT$40, though it briefly dipped into negative territory during the session, falling to a low of NT$5,140. Hon Hai (2317.TW) opened at NT$255, trading steadily. ASE Technology Holding and Unimicron also moved higher, with the overall electronics sector index gaining over 1% and lifting the broader market. Quanta Computer (2382.TW) opened at NT$342.5 before slipping NT$2 to NT$340, while Delta Electronics (2308.TW) opened at NT$1,910 and reached an intraday high of NT$1,920.

The memory chip sector delivered standout performance today, with Nanya Technology and Winbond Electronics both gaining over 4%. Passive component maker Yageo surged nearly 5%, with its share price approaching the NT$600 level. The panel sector showed mixed performance, with AUO falling over 3% against the trend while Innolux slipped 0.5%.

Analysts noted that U.S. technology stocks continue to set record highs, with the Nasdaq Composite repeatedly rewriting closing records. Combined with the strong overnight gains in Taiwan Index Futures, buying momentum in heavyweight electronics shares remains intact. If trading volume expands moderately, the bullish trend could be sustained. However, with the index now in elevated territory, subsequent performance will depend on whether volume can keep pace.

Notably, with the Mid-Autumn Festival holiday approaching, analysts cautioned investors to watch for short-term profit-taking pressure that could create a tug-of-war, with intraday volatility potentially intensifying. In the previous trading session, the market had surged nearly 900 points intraday, breaking through 48,600 points to set an all-time high, but pre-holiday selling pressure significantly pared gains, with the index closing up only 81.33 points.

Reviewing the 22nd session, the weighted index closed at 47,800.17 points, up 81.33 points or 0.17%, with trading volume of NT$1.021569 trillion (approximately $32.3 billion). The three major institutional investors posted combined net buying of NT$60.809 billion (approximately $1.9 billion), with foreign investors buying NT$45.321 billion (approximately $1.4 billion), proprietary traders buying NT$15.854 billion (approximately $500.5 million), and investment trusts posting modest net selling of NT$366 million (approximately $11.6 million).

In international markets, the four major U.S. indices closed mixed on the 22nd. The Dow Jones Industrial Average fell 185.14 points, or 0.36%, to close at 51,863.69. The S&P 500 slipped 0.06 points to close at 7,764.64, essentially flat. The Nasdaq Composite rose 122.18 points, or 0.45%, to close at 27,244.28, setting another record closing high. Asian markets also strengthened today, with Japanese and South Korean stocks both gaining nearly 1.4% in early trading.

From a technical perspective, after breaking through the previous high of 48,218.87 points, Taiwan’s stock market has established a short-term bullish structure. However, with the index at historically elevated levels, whether it can continue to grind higher depends on the sustainability of foreign buying and volume dynamics. Market participants believe that the rotation rhythm between heavyweight electronics stocks and the AI supply chain will be key to determining whether the Taiwan stock market can firmly hold above the 48,000-point level.