Taiwan shares end year at record high on TSMC surge

Taipei, Dec. 31 (CNA) Taiwan shares closed the final trading session of 2025 at a record high Wednesday, led by Taiwan Semiconductor Manufacturing Co. (TSMC), as the benchmark index capped a second straight year of historic gains fueled by strong demand tied to artificial intelligence (AI) infrastructure.

The Taiex, the Taiwan Stock Exchange's benchmark index, opened higher at 28,723.49 and rose steadily through the session, hitting an intraday high of 29,009.81 before closing up 256.47 points, or 0.89 percent, at 28,963.60 -- the highest year-end closing level on record. Turnover totaled NT$536.11 billion (US$17.05 billion).

In December, the Taiex gained 1,337.12 points, while fourth-quarter gains totaled 3,143.06 points.

For the full year, the benchmark surged 5,928.5 points, or 25.73 percent, surpassing the 5,104.29-point rise recorded in 2024 and setting a new record for annual point gains for the second consecutive year.

The index has now risen more than 20 percent for three straight years.

According to Taiwan Stock Exchange data, the combined market capitalization of all listed companies reached a record NT$94.36 trillion at year-end, up about NT$20.46 trillion from a year earlier.

Based on the latest exchange statistics through the end of November, Taiwan had about 13.71 million securities trading accounts, translating into an average gain of roughly NT$1.49 million per investor in 2025.

The Taiex's intraday peak marked the first time the index broke above the 29,000-point threshold.

Compared with this year's low of 17,306.97 points in April, the market posted a full-year trading range of 50.8 percent.

TSMC, the market's most heavily weighted stock, closed at a record NT$1,550, up NT$30, or 1.97 percent, lifting its market capitalization to NT$40.19 trillion and contributing about 240 points to the index's gain.

For the year, TSMC rose NT$475, or 44.18 percent, adding NT$12.31 trillion in market value and contributing an estimated 3,813 points to the Taiex, making it the primary driver of the market's advance.

Benefiting from strong AI demand, the chipmaker raised its full-year outlook twice in 2025 and now expects U.S. dollar-denominated revenue to grow by nearly 35 percent.

Other heavyweight technology stocks also ended higher, including Hon Hai Precision Industry Co., MediaTek Inc., Delta Electronics Inc. and Quanta Computer Inc.

Memory chipmakers and silicon photonics-related stocks performed strongly, pushing the electronics sector index up 1.33 percent.

In contrast, most traditional industry stocks closed lower. The glass sector index fell 1.43 percent, while plastics stocks showed relative strength late in the session, with the sector index ending up 1.16 percent.

Alex Huang (黃國偉), vice president at Mega International Investment Services Corp., said Taiwan has been a key beneficiary of strong AI infrastructure demand, with solid corporate fundamentals underpinning the market's advance.

Foreign institutional investors sold a net NT$518 million worth of shares on the main board Wednesday, according to the TWSE.