Taiwan shares end up as TSMC hits record high

Taipei, Dec. 29 (CNA) Shares in Taiwan closed higher Monday as Taiwan Semiconductor Manufacturing Co. (TSMC) hit a record high on reports that the contract chipmaker will raise prices for its advanced chips, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 254.87 points, or 0.89 percent, at 28,810.89, after moving between 28,595.35 and 28,841.64. Turnover totaled NT$439.098 billion (US$13.97 billion).

TSMC benefited from optimism over its sales prospects after local media reported that the chipmaker will raise prices for high-end chips starting Jan. 1 due to tight global supply, dealers said.

TSMC, the most heavily weighted stock on the local market, rose 1.32 percent to close at a record NT$1,530.00, contributing about 160 points to the Taiex's rise and pushing the electronics index up 1.10 percent.

"If speculation about price hikes proves true, TSMC will likely continue to post strong sales growth next year, so investors should watch its guidance closely," Concord Securities analyst Kerry Huang said.

TSMC is scheduled to hold an investor conference on Jan. 15 to provide guidance for the first quarter of 2026, as well as the whole year. The company has forecast that its sales will grow nearly 35 percent in U.S. dollar terms in 2025.

Among other semiconductor heavyweights, smartphone IC designer MediaTek Inc. rose 2.53 percent to close at NT$1,420.00, while IC packaging and testing services provider ASE Technology Holding Co. gained 437 percent to end at NT$251.00.

Also in the tech sector, AI server maker and iPhone assembler Hon Hai Precision Industry Co. rose 2.44 percent to end at NT$231.00, while Quanta Computer Inc., another AI server supplier, ended flat at NT$263.00.

Innolux Corp. surged 10 percent, the maximum daily increase, to close at NT$14.85 following reports that it has secured orders for its advanced fan-out panel-level packaging (FOPLP) services for chips in the SpaceX supply chain.

Buying also spread to select old-economy stocks, Huang said.

Taiwan Glass Industry Corp. rose 2.85 percent to close at NT$36.10, while Nan Ya Plastics Corp. gained 2.09 percent to end at NT$58.70 on strong demand for materials used in tech devices.

With the financial index rising 0.37 percent, Fubon Financial Holding Co. advanced 1.24 percent to NT$98.20, while Cathay Financial Holding Co. gained 1.60 percent to close at NT$76.00.

"As market liquidity remains ample, the Taiex is likely to challenge the 29,000-point level by the end of the year," Huang said.

On Monday, foreign institutional investors bought a net NT$9.27 billion worth of shares on the main board.