Preface

The Taiwan stock market has seen significant movements as we approach the pre-open session. Notable developments include the rise of the Shanghai Containerized Freight Index (SCFI) by over 30% on certain routes and the positive GDP forecast by the Chung-Hua Institution for Economic Research. Additionally, major industry players such as Winbond are targeting substantial revenue benchmarks. This article delves into these developments to provide a comprehensive overview of what market participants can expect.

Lazy bag

Key highlights include a 30% rise in SCFI's West Coast rates, a 5.45% GDP growth forecast, and Winbond's 100 billion revenue target.

Main Body

The Taiwan stock market has been a focal point in recent news due to various critical updates. Last week, foreign investors offloaded shares valued at NT$219.97 billion, with a significant reduction of 12,000 in TSMC shares. Despite this, the stock market reached a new high of 27,732.78 points. However, foreign investors’ tendency to sell during market peaks was apparent, accumulating a net sell of NT$967 billion over the week.

While the Taiwan stock index narrowly gained 0.45 points for the week, TSMC's (2330-TW) positive revelation failed to rally the market extensively. Traders caution that with current technical overheat trends, a period of short-term consolidation might be optimal. Observers should watch the U.S.-China negotiations, particularly after President Trump’s softened stance, which could influence short-term market dynamics.

A significant development in the shipping industry was the SCFI's announcement on October 17, showing a rebound of 149.9 points to 1,310.32. This marked two consecutive weeks of increases, with a 12.92% rise, driven mainly by strong demand and price hikes on the U.S. West Coast line.

The Chung-Hua Institution for Economic Research forecasts Taiwan's GDP growth at 5.45% for the year, depicting a balanced growth model. The domestic demand contributed 2.50 percentage points, while net foreign output shifted from negative to a positive contribution of 2.95 points, marking a significant turnaround.

Winbond (2344-TW), during its 2025 family day, revealed a noticeable uptick in orders since July. The company, led by CEO Chen Pei-Ming, noted new customer inquiries and burgeoning long-term agreements, including previously untapped clients. This indicates a structural shortage in DDR4, potentially enabling revenue to hit the NT$100 billion mark next year, positioning Winbond among Taiwan’s top semiconductor firms by revenue. Plans for capacity expansion are under discussion, awaiting the end-of-month board meeting.

Additionally, the testing equipment company Chunghwa Precision Corporation (6217-TW) announced that its 1,200-watt high-power burn-in sockets have been successfully validated and have entered the supply chain of prominent IC design and testing firms, which could positively impact revenue.

Key Insights Table