TSMC helps stabilization fund net NT$7.7 billion in market intervention

Taipei, Aug. 7 (CNA) Trading in shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) during the latest market intervention helped Taiwan's National Financial Stabilization Fund earn about NT$7.7 billion (US$239 million), according to figures released by the fund Thursday.

The fund said purchases and subsequent sales generated a net profit of NT$7.77 billion, accounting for about 77 percent of its total net profit of NT$9.93 billion from the intervention.

During the intervention, which ran from April 9, 2025 to Jan. 12, 2026, the stabilization fund invested NT$12.25 billion in shares. The 279-day intervention was the longest in the fund's history.

The fund completed the sale of the shares it bought on May 6, generating a net profit of NT$9.93 billion, equivalent to a return of about 81 percent.

The NT$500 billion stabilization fund was established in 2000 by the government as a buffer against unexpected external events that could disrupt the local stock market.

It entered the market in April 2025 after Taiwanese shares suffered heavy losses following U.S. President Donald Trump's announcement of "reciprocal tariffs."

During the 279-day market intervention, the Taiex, the Taiwan Stock Exchange's benchmark index, soared 13,175.53 points, or 75.76 percent. The fund said its intervention helped the market weather the volatility and bolstered investor confidence.

The fund bought shares in eight large-cap stocks during the intervention: six major technology companies, including TSMC, and two non-technology firms, Formosa Plastics Corp. and Fubon Financial Holding Co.

It spent about NT$7.702 billion on TSMC shares, accounting for almost 63 percent of its total investment. The subsequent sale of the shares generated NT$15.36 billion in proceeds and a net profit of NT$7.772 billion, including about NT$113 million in cash dividend payment from the chipmaker.

The fund invested NT$1.86 billion in iPhone assembler and AI server maker Hon Hai Precision Industry Co., accounting for 15 percent of its total investment, the second-largest allocation after TSMC.

It also invested NT$860.86 million, or 7 percent of the total, in IC packaging and testing firm ASE Technology Holding Co., the third-largest allocation.

After selling its Hon Hai and ASE shares, the fund recorded net profits of NT$478 million and NT$1 billion, respectively, the data showed.

The fund also invested NT$849 million in smartphone IC designer MediaTek Inc., NT$453 million in power management solutions provider Delta Electronics Inc. and NT$443 million in AI server supplier Quanta Computer Inc.

Sales of the three stocks generated net profits of NT$340 million, NT$392 million and NT$50 million, respectively.

The fund also spent NT$77.40 million on Fubon Financial shares and NT$6.91 million on Formosa Plastics shares, generating net profits of NT$22.7 million and NT$1.72 million, respectively.

The fund had previously been used to support the stock market in 2000 (twice), 2004, 2008, 2011, 2015, 2020 and 2022.