Taiwan stocks suddenly surge to 28,100 points, with memory and silicon photonics grabbing the focus of funds

US stocks’ four major indices all rose across the board, driving the Taiwan stock market to open strongly today, with intraday gains exceeding 470 points, successfully stabilizing above 28,100 points. Supported by the steady performance of heavyweight stocks TSMC and Hon Hai, along with capital inflows into popular sectors such as semiconductors, memory, and silicon photonics, 24 stocks hit the daily limit-up, and market trading was lively, showing strong bullish momentum.

Leading the Market, Capital Rotation Accelerates

TSMC (2330) played a leading role in today’s market, opening high and continuing to push upward, with the highest intraday price reaching NT$1,470, nearly a 2.8% increase, adding significant gains to the index. Hon Hai (2317) also steadily climbed, with an intraday increase of about 1.8%. Notably, MediaTek (2454) showed a pattern of opening high and then declining, turning red to black during the day, with a decline exceeding 1% at one point, indicating active rotation and profit-taking among electronic heavyweight stocks.

Memory Sector Explodes, Becomes Market Focus

Recently upgraded by multiple foreign institutions, the memory sector today unleashed its upward momentum. Powerchip (6770) surged early and hit the daily limit at NT$40.45, with trading volume exceeding 460,000 shares, becoming the market’s most popular stock of the day.

Another strong performer is Fuhua Technology (8131), a memory testing and packaging company under Nanya Technology (2408), which announced a NT$700 million investment to build advanced packaging capacity, aiming to position itself in AI and high-performance computing (HPC) memory applications. This news drove the stock to hit the daily limit at NT$56.3, with over 12,000 buy orders still hanging at high prices during the day. The performance of the memory group reflects the market’s long-term optimism for AI computing upgrades.

Silicon Photonics and Third-Generation Semiconductors Rise Together

Silicon photonics and third-generation semiconductor stocks also gained favor. GaAs wafer foundry giant Win Semiconductors (3105), after consolidating last week, showed strong momentum today, hitting the daily limit at NT$191 before noon.

Market analysis indicates that NXP Semiconductors, a Dutch semiconductor giant, announced its exit from GaN (Gallium Nitride) 5G power amplifier chip manufacturing, which benefits Taiwanese supply chains to take over the orders, attracting buyers to pre-position.

The silicon photonics sector is flourishing, with Huaxing Photonics (4979) rising over 9%, Wite (6706) up more than 8%, and other stocks like BoroWave (3163), Pan Quen (6830), and Walsin Technology (2344) also gaining over 5%. The overall strong performance of these groups highlights ongoing market optimism for optical communication and high-speed transmission long-term themes.

Sector Rotation in Good Health, Multiple Directions Simultaneously

Looking at today’s market structure, capital was not overly concentrated but showed a healthy, dispersed rotation:

Communication Networks: Xin Fuxing (4909), China Electric Power (6163), Yao Deng (3138) all hit the daily limit-up

Electronic Components: Yijia (2402), Wende (6761), Wacom (2313) performed outstandingly

Other Sectors: Construction, chemicals, computer peripherals, and auto-related stocks such as Gongxin (5521), Rishenghua (1735), Dazhong Holdings (3701), Jimao (1587) also reached the daily limit-up

This phenomenon indicates a clear increase in market risk appetite, with funds seeking stocks with thematic or rebound potential across various fields.

Year-End Portfolio Building Starts, Focus on Growth Themes

The Taiwan stock market successfully broke through recent consolidation zones today, led by industries with strong fundamentals and future growth potential. As AI applications expand, from cloud to edge devices, the demand for computing power will continue to drive long-term growth momentum in advanced semiconductor processes, high-speed transmission, memory, and advanced packaging supply chains.

For investors seeking stable stock recommendations, focus on stocks recently upgraded by foreign institutions, with technological advantages or clear operational outlooks for next year, to position ahead of the year-end rally. However, be aware of rapid market rotation; it is advisable to avoid chasing high prices excessively. Core holdings should be stable stocks with long-term industry trend protection, and closely monitor international stock market movements and trading volume changes as reference.