Highlights

Taiwan's stock market is seeing unprecedented highs, driven by TSMC's impressive performance ahead of its earnings report. Other key developments include the surge in AI-driven memory market demand, and continuous DRAM price hikes. TSMC's success and positive market sentiment have led to significant gains, and expectations for GDP growth have been revised upwards due to robust exports.

Sentiment Analysis

• The sentiment in the article is predominantly positive, with expectations of continued growth and market gains.


• TSMC's new highs signal strong investor confidence, reflected in the positive outlook for the tech sector.


• While there are concerns about AI's developmental stage, overall sentiment remains optimistic due to its vast potential.

Article Text

The Taiwan stock market has recently witnessed remarkable movements, particularly influenced by Taiwan Semiconductor Manufacturing Company (TSMC). Ahead of its earnings report, TSMC's shares have reached new record highs, leading the broader market to surge by 482.65 points, closing at 27,275.71. The market's transaction value reached a significant NT$5,001.09 billion.

Foreign investors, while previously moderating their holdings in TSMC, have turned to slight buying on the day. The surge in the tech sector, especially the AI domain, has introduced a structural gap in the memory market, as emphasized by the chairman of major industrial memory module manufacturer, InnoDisk. There's an acute shortage of DDR4 production, and prices show no sign of abating.

Acknowledging concerns about AI sector volatility, Foxconn's Chairman Liu Yangwei reassures that AI's developmental journey is in its nascent phase, noting the expansive computational power still required. Furthermore, China's recent rare earth export restrictions have sparked a dialogue about potential long-term impacts across industries, although short-term effects remain limited.

The Director-General of Taiwan's Directorate-General of Budget, Accounting and Statistics has shared projections for Taiwan's economic growth, which may surpass initial estimates due to strong export activities fueled by consistent AI demand.

Additionally, Starlux Airlines anticipates the arrival of their first A350-1000 aircraft by year-end, aiming to inaugurate their first European route in the latter half of next year.

In the ETF arena, driven by ongoing market positivity and gains from TSMC and other key stocks, Strong ETF net purchases were recorded, propelling total assets to over NT$8,126 billion, marking a significant milestone towards the first trillion-dollar ETF in Taiwan.

Key Insights Table