Taiwan stock market rises sharply, driven by strong government backing and renewed optimism about Nvidia’s chip shipments to China. The Taiwan Capitalization Weighted Stock Index (TAIEX) gained 220.97 points, closing at 22,835.94. Trading volume reached NT$310 billion (US$10.5 billion), reflecting robust market activity.
Investor sentiment improved significantly after authorities confirmed that the National Stabilization Fund will continue supporting the market. Since its establishment, the fund steps in during times of market volatility to stabilize prices. This reassurance helped calm nerves and encouraged buying.
Leading technology companies benefited from this positive momentum. TSMC shares climbed 1.37% to close at NT$1,110, boosted by news that Nvidia would resume shipping downgraded H20 AI chips to China. Meanwhile, Foxconn rose 1.56% to NT$163, and MediaTek advanced 0.72% to NT$1,395.
The printed circuit board (PCB) industry also gained attention. Companies involved in copper-clad laminates, such as Elite Material, led the rally. Career Technology, Nan Ya PCB, and Fulltech hit their daily limit-up prices. These laminates serve as the base for electronic devices, connecting components with copper wiring.
Moreover, the integrated circuit substrate market experienced gains. Demand for Ajinomoto Build-up Film (ABF), essential for AI servers, strengthened. This boosted companies like Unimicron Technology, Nanya PCB, and Kinsus Interconnect Technology, which all reached daily trading limits. ABF, produced by Japan’s Ajinomoto, plays a critical role in semiconductor packaging by linking chips to PCBs.
Chi Far Securities Investment Vice President Jung Yi-shen explained that local sentiment improved due to Wall Street’s positive performance and the National Stabilization Fund’s commitment. He added that TSMC breaking above NT$1,110 gave investors a psychological lift. Furthermore, Nvidia’s chip news stimulated interest across the AI supply chain.
Looking ahead, Jung advised investors to watch several key events. The market’s reaction after Taiwan’s stock index futures settle will be crucial. Foreign investors’ trading moves will also influence market direction. Additionally, TSMC’s investor conference may shed light on semiconductor industry trends.
Other factors to monitor include exchange rate fluctuations and developments in US-Taiwan trade talks. Jung noted that many foreign investors hold short positions in Taiwan index futures. However, these are often hedging strategies rather than bearish bets. Some institutions may wait for upcoming recall vote outcomes before adjusting positions.
In summary, the Taiwan stock market rises due to strong government support and optimistic signals from Nvidia’s chip shipments. Investors should remain cautious but stay informed on upcoming events.