Taiwan Stock Market Pre-market News: Record-breaking Surge Aims for 45,000; TSMC Reportedly to Raise Prices by 10% Starting Next Year

July 22 Taiwan Stock Market Pre-market News

1. On July 21, Taiwan's stock market surged 1,783 points, recording the largest single-day gain in history and reclaiming both the quarterly line and the 44,000-point level. However, foreign investors remained on the selling side, offloading NT$4.3 billion worth of shares, marking their 13th consecutive day of net selling, with heavy selling in the panel 'twin tigers.' In contrast, domestic institutional investors bought NT$17.2 billion, marking their 20th consecutive day of net buying, adding positions in financial stocks. UMC was sold down by both foreign and domestic institutions.

2. On July 21, the Taipei foreign exchange market saw mixed movements. Unlike the strong stock market rebound of 1,783.17 points and recovery above the 44,000-point level, the New Taiwan dollar closed down 9.7 cents at NT$32.345 per U.S. dollar. Trading volume at Taipei Foreign Exchange Brokers surged to $3.223 billion, the third-highest single-day volume in history.

3. CNS (5483-TW) and United Renewable Energy (3576-TW) jointly announced on July 21 that they will invest $40 million (approximately NT$1.29 billion) to establish a solar module manufacturing company in the United States. CNS will hold 51% and United Renewable Energy 49%. The project will be led by professional manager Yeh Cheng-hsien, with plans to build a factory with an annual production capacity of 1GW. Mass production and shipment are expected to begin within one year after the factory site is confirmed and a lease agreement is signed.

4. On July 21, Taiwan's Ministry of Economic Affairs Statistical Division announced that June's export order value reached $95.26 billion, exceeding initial expectations and setting a new record for the highest monthly value in history. The year-on-year growth rate was 59.4%, marking 17 consecutive months of positive growth. The cumulative export order value for the first half of the year has surpassed $500 billion, also a record high for the period. The Ministry noted that continued expansion in demand for applications such as artificial intelligence, high-performance computing, and cloud services has driven strong order intake for related technology products, serving as the core driver for robust export order growth.

5. According to sources cited by the Nikkei, TSMC (2330-TW) (TSM-US) has begun discussions with customers regarding a potential increase of up to 10% in foundry prices by 2027, aiming to cope with rising manufacturing and production costs.

6. After months of AI-driven euphoria in global stock markets, investors are beginning to anticipate a slowdown in AI-related capital expenditures by major U.S. cloud service providers. However, from the logistics perspective, freight forwarder CFA (5609-TW) stated on July 21, 'At least so far, we haven't seen any signs of slowing in AI server-related shipments,' adding that air freight demand will remain strong through next year.