Taiwan stocks break through the 28,000-point mark, with semiconductor and high-speed transmission concept stocks taking turns to lead the charge

With all four major U.S. stock indices trending higher, the Taiwan stock market opened today (22nd) with a strong momentum. Benefiting from leading large-cap stocks and continuous capital inflows, trading activity was lively, with the index soaring over 470 points at one point during the session, successfully breaking through 28,100 points. More than 24 listed and OTC stocks hit the daily limit-up, demonstrating strong bullish momentum.

Large-cap stocks steadily lead the rally, industry funds make precise allocations

Taiwan Semiconductor Manufacturing Company (2330) and Hon Hai Precision Industry (2317), the two major large-cap stocks, continued their strength, with their prices rising steadily after the market opened. TSMC’s intraday high reached NT$1,470, up nearly 2.8%, significantly contributing to the market’s gains; Hon Hai also rose steadily, with an increase of about 1.8%. In contrast, MediaTek (2454) showed a pattern of opening high and then declining, turning red from black during the session, with a decline exceeding 1% at one point, indicating market funds rotating and rebalancing among electronic stocks.

This phenomenon reflects that investors are not blindly betting on a single large-cap stock but are dynamically adjusting based on industry fundamentals and growth prospects, leaving ample room for subsequent industry rotation.

Memory group surges across the board, advanced packaging applications become focus

Recently, memory-related stocks that have been upgraded by multiple foreign institutions to target prices have become the most bullish focus on the market. Powerchip Technology (6770) surged early to hit the daily limit at NT$40.45, with trading volume exceeding 460,000 chips, becoming today’s market favorite. Nanya Technology (2408)’s memory testing and packaging subsidiary, Fuman Technology (8131), also performed remarkably after announcing a NT$700 million investment to build advanced packaging capacity, preemptively positioning for AI and high-performance computing (HPC) memory applications, with the stock hitting the daily limit at NT$56.3, and still over 12,000 buy orders hanging during the session.

The driving force behind this round of memory group rally lies in the growing demand for computing power driven by expanding AI applications, making advanced memory and high-efficiency packaging technology key battlegrounds in the industry.

High-speed transmission and third-generation semiconductor groups show synchronized stance

In addition to memory, high-speed transmission concept stocks and third-generation semiconductor stocks also attracted capital, showing a collective upward trend.

Germicidal gallium arsenide wafer foundry leader, Vanguard International Semiconductor (3105), rebounded strongly after last week’s consolidation, hitting the daily limit at NT$191 before noon. Market insiders pointed out that NXP Semiconductors, a Dutch semiconductor giant, announced withdrawal from GaN (Gallium Nitride) 5G power amplifier (PA) chip manufacturing, which is expected to benefit Taiwanese supply chains with order transfers, attracting preemptive buying.

Among high-speed transmission concept stocks, Walsin Lihwa (4979) rose over 9% at its peak during the session, Witech (6706) gained more than 8%, while BoroWave (3163), Fan Quen (6830), and Macronix (2344) also rose over 5%. The long-term themes of optical communication and high-speed transmission continue to be favored by the market amid 5G upgrades and data center expansions.

Sector rotation activates diverse investment opportunities

From today’s market structure, capital shows healthy rotation without over-concentration in a single industry. Besides semiconductors and optoelectronics, stocks in communication networks, electronic components, construction chemicals, and other fields also hit the daily limit:

• Communication networks: Xin Fuxing (4909), China Electric Power Network (6163), Yao Deng (3138) all hit the limit-up
• Electronic components: Yijia (2402), Wende (6761), Walsin (2313) performed strongly
• Other sectors: Gongxin (5521), Risheng Chemical (1735), Dazhong Holdings (3701), Jimao (1587) also hit the limit-up

This phenomenon fully reflects an increased risk appetite, with market funds actively deploying targets with thematic or fundamental improvements across various fields.

Year-end rally begins, growth industries become key for deployment

Looking at today’s market, Taiwan stocks, driven by international stock markets and internal capital accumulation, successfully broke through recent consolidation zones, led by industries with fundamental advantages. Analysts pointed out that as AI applications expand, the demand for computing power from cloud to edge devices will continue to grow, driving long-term development momentum in advanced semiconductor processes, high-speed transmission, memory, and advanced packaging industries.

Investors should focus on targets recently upgraded by foreign institutions, with technological leadership or clear operational prospects for next year, to seize opportunities in the year-end rally. However, caution is advised due to rapid sector rotation; it is recommended to focus on high-speed transmission concept stocks and core chips with industry trend protection, while closely monitoring international stock market movements and trading volume changes as references for operations.