Taiwan Stock Market Surges Over 3,200 Points, TSMC Leads Rebound with Intraday Limit-Up, Contributing Approximately 1,748 Points

As Asian equities rebounded sharply, with South Korea's market soaring 16%, Taiwan's stock market surged over 3,200 points on March 31, marking a gain of more than 8%. TSMC (2330-TW)(TSM-US), the market's heavyweight, led the recovery, hitting a rare intraday limit-up at NT$2,425, reclaiming all short-term moving averages and contributing approximately 1,748 points to the rally.

TSMC's previous limit-up occurred on April 10 last year, when former U.S. President Trump announced a temporary suspension of tariff policies, triggering a retaliatory rebound in Taiwan's market. This time, the surge followed the conclusion of deleveraging in South Korea's market, a clear reduction in market adjustment selling pressure, and a stream of positive news from the tech sector, aligning TSMC's rise with global equity momentum.

TSMC had recently halted operations due to the magnitude 7.1 earthquake in Kumamoto. However, the company operates only one fab in Japan, with a monthly capacity of about 20,000 wafers, primarily using 28/22/16/12nm processes, accounting for less than 3% of total capacity. From a revenue perspective, the Japanese plant is expected to contribute only about 1% of 2026 revenue, leading analysts to assess the earthquake's operational impact as limited.

Looking ahead, TSMC expressed strong confidence in its multi-year growth trajectory. Based on the investment scale of cloud service providers (CSPs) and customer demand, a new global AI industry is emerging, with semiconductor chips serving as the foundational technology. TSMC particularly emphasized that AI demand is expected to sustain strong growth through 2030.