Taiwan shares end at high as TSMC breaks records

Taipei, Jan. 2 (CNA) Shares in Taiwan closed at a new high Friday, the first trading session of 2026, as contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) continued to break records amid the current AI boom, dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended up 386.21 points, or 1.33 percent, at 29,349.81, after moving between 29,007.75 and 29,363.43. Turnover totaled NT$648.84 billion (US$20.66 billion).

"Judging from a stronger Taiwan dollar against the U.S. dollar, I think foreign institutional investors returned from the holidays and brought funds into the local market," according to Concord Securities analyst Kerry Huang.

"Foreign investors just rebuilt their positions with TSMC as their top target, betting the company will give positive leads at an investor conference slated for Jan. 15," Huang said.

TSMC, which accounts for over 40 percent of total market value, rose 2.26 percent to close at NT$1,585.00, contributing about 280 points to the Taiex's rise and sent the electronics index up 1.79 percent.

Foreign institutional investors also picked up other semiconductor heavyweights, including smartphone IC designer MediaTek Inc., which gained 2.80 percent to end at NT$1,470.00, and IC packaging and testing services provider ASE Technology Holding Co., which added 2.99 percent to close at NT$258.00, Huang added.

Among other AI server makers, shares in Quanta Computer Inc. attracted bargain hunting and rose 1.84 percent to end at NT$232.00, while Hon Hai Precision Precision Industry Co., second to TSMC in market value, ended up 0.65 percent at NT$232.00.

Buying continued to focus on memory chip suppliers as strong AI applications further squeezed supply and boosted product prices, Huang said, referring to Winbond Electronics Corp. surging 10 percent, the maximum daily increase, to close at NT$90.80 and Nanya Technology Corp. gaining 7.25 percent to end at NT$207.00.

"With the electronics sector in the spotlight, nontech stocks largely moved in weakness with some exceptions in the cable and wire industry, which benefited from higher metal prices," Huang said.

Ta Ya Electric Wire & Cable Co. rose 1.45 percent to close at NT$38.50, and rival Walsin Lihwa Corp. ended up 3.46 percent at NT$32.90.

However, on weakening oil prices, Formosa Plastics Corp. lost 1.41 percent to close at NT$38.48, and Nan Ya Plastics Corp. fell 5.32 percent to end at NT$57.00.

In the financial sector, E. Sun Financial Holding Co. rose 1.04 percent to close at NT$34.10, while Cathay Financial Holding Co. and Fubon Financial Holding Co. lost 0.79 percent and 0.52 percent, respectively, to end at NT$75.20 and NT$95.60.

"The Taiex is likely to challenge 30,000 points as foreign institutional buying continues until TSMC's investor conference," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$12.02 billion worth of shares on the main board Friday.