Taiwan stocks break through 28,100 points! Memory chip prices are trending upward, boosting the semiconductor sector, and capital rotation is in full swing.

Along with major U.S. stock indices rising, the Taiwan stock market opened today (22nd) with a strong momentum. After advancing nearly 300 points in the early session, the rebound continued with strength, approaching the 28,100-point mark at one point during the session, with a maximum gain of over 470 points. Led by heavyweight stocks such as TSMC and Hon Hai, along with continuous inflows of funds into popular sectors like semiconductors, memory, and silicon photonics, more than 24 listed stocks hit the daily limit-up, creating a lively market atmosphere with strong bullish momentum.

Memory Prices Remain Strong, Packaging Plants Actively Expand

The memory sector became the most eye-catching focus today. Benefiting from the gradual rebound in memory prices, foreign investors raised target prices for related stocks, encouraging buying interest. Powerchip (6770) launched an attack at the open, quickly hitting the limit-up price of 40.45 yuan, with over 460,000 shares traded, capturing the top spot in popularity.

On the other hand, Formosa Plastics (8131), under Nanya Technology (2408), announced recently a 700 million yuan investment to expand advanced packaging capabilities, targeting AI and high-performance computing memory markets. This resonated with investors, and the stock price hit the limit-up at 56.3 yuan, with more than 12,000 buy orders continuously hanging during the session. This move highlights industry optimism about the future performance of memory prices and positions the sector for a new growth cycle.

In terms of heavyweight stocks, TSMC (2330) opened higher and continued to rise, with the highest intraday price reaching 1,470 yuan, nearly a 2.8% increase, contributing significantly to the market. Hon Hai (2317) also steadily climbed, with an intraday gain of about 1.8%. However, MediaTek (2454) showed a red-to-black trend, with a drop of over 1% at one point, indicating flexible capital allocation among electronic stocks.

Silicon Photonics and Power Components Surge

The silicon photonics sector also performed remarkably today. Hua Xing Photonics (4979) surged over 9% at its peak, while Wite (6706) rose more than 8%. Companies like PoroWave (3163), Fan Quen (6830), and Walsin Technology (2344) also gained over 5%, with the entire sector thriving, indicating continued market optimism for optical communication and high-speed transmission opportunities.

GaN wafer foundry provider Alpha & Omega Semiconductor (3105) regained momentum after a period of consolidation, breaking through the limit-up before noon to reach 191 yuan. Market analysts pointed out that with NXP announcing its exit from GaN power amplifier chip manufacturing, Taiwan’s related supply chain may receive new orders, attracting early capital deployment.

Diverse Sectors Respond in Unison, Market Rotation Healthy and Active

From the market structure perspective, today’s capital was not concentrated in specific sectors but showed balanced rotation. Besides semiconductors and optoelectronics, communication network stocks such as New Renaissance (4909), China Telecom (6163), and Yao Deng (3138) all hit the limit-up; electronic component stocks like Yijia (2402), Winde (6761), and Walsin (2313) performed strongly; traditional sectors such as construction, chemicals, computer peripherals, and automobiles also saw stocks like Gongxin (5521), Rishenghua (1735), Dazhong Holdings (3701), and Jimao (1587) hit the limit-up simultaneously. This phenomenon reflects an increased risk appetite in the market, with funds actively seeking targets with themes or potential for rebound across various fields.

Year-End Portfolio Building Accelerates, Seize Growth Opportunities

Overall, the Taiwan stock market, supported by foreign buying and internal annual adjustments, successfully broke through consolidation zones, led by industries with solid fundamentals and future growth potential. Analysts note that as AI applications expand, the demand for computing power from data centers to edge computing will continue to rise, driving long-term growth cycles in advanced semiconductor processes, high-speed transmission, memory, and advanced packaging industries.

Investors are advised to focus on stocks recently upgraded by foreign ratings, with technological competitive advantages or clear operational prospects for next year. However, they should remember that market rotation is rapid; it’s better to avoid chasing highs intraday and instead focus on core targets that capture industry trends and offer protection. Close attention should also be paid to international stock market performance and trading volume changes as references for decision-making.