Taiwan Stock Market's Most Dramatic Rebound Ever, Tech Giants' Earnings Week, Q2 GDP Revised Up to 12.92% – Weekly Recap

MediaTek, Delta Electronics, and United Microelectronics Corporation (UMC) all held earnings briefings this week to outline their latest business outlooks. On Friday, May 31, the Taiwan stock market soared 3,186.45 points, recording the largest point gain in its history, with the total market capitalization of listed stocks returning to NT$150 trillion. Meanwhile, the U.S. Federal Reserve announced its latest interest rate decision early Thursday morning (May 30, Taiwan time), maintaining rates unchanged—a fifth consecutive hold. Below is a recap of this week’s major events.

〈MediaTek Earnings Call〉Raises AI ASIC Market Share Target to 15%-20%; Second-Gen ASIC to Enter Mass Production in 2028

MediaTek (2454-TW) has been aggressively pursuing opportunities in the AI ASIC market in recent years. At its earnings call on Friday (May 31), CEO Ming-Kai Tsai announced an upward revision of its AI ASIC market share target for 2027—from the original 10%–15% to 15%–20%. Development of the second-generation AI accelerator ASIC continues on schedule, with mass production expected to begin in early 2028.

〈Delta Electronics Earnings Call〉Chairman: No Sign of AI Slowdown; Capex Forecast Rises to NT$70 Billion in 2024

Delta Electronics (2308-TW) held its earnings briefing on Thursday (May 30). Chairman Frank Chen stated, “We currently see no sign of AI development slowing down,” and expects stronger operations in the second half of the year. The company will continue expanding its factories, with capital expenditures projected to reach NT$70 billion in 2024—up approximately 50% from last year’s NT$46.6 billion.

〈UMC Earnings Call〉Raises 2024 Capex to $2 Billion; Dual-Track Expansion in Singapore and Taiwan

United Microelectronics Corporation (2303-TW) (UMC-US) held its earnings call today (May 29). CEO Jason Wang announced that the company is raising its 2024 capital expenditure from $1.5 billion to $2 billion, primarily allocated toward specialty process technologies, advanced packaging, and AI-related capacity expansion. Additionally, the board has approved approximately $5 billion in future capex, to be phased in between 2026 and 2027 based on customer commitments, orders, and market demand.

Historic 3,186-Point Surge in Taiwan Stocks; Market Value Jumps by Over NT$10 Trillion; Weekly Chart Forms 3,438-Point Lower Shadow

On Friday (May 31), the Taiwan stock market rallied strongly alongside global markets. Led by large-cap tech stocks such as TSMC and MediaTek hitting daily limits, the weighted index surged 3,186.45 points (7.98%), setting a historic record for the largest single-day gain. It closed at 43,119.75, reclaiming the 5-day moving average. Total market value spiked by approximately NT$10.65 trillion, bringing the combined market cap of listed stocks back above NT$150 trillion. However, trading volume did not expand—it actually shrank significantly to NT$833.7 billion. Additionally, the weekly chart formed a 3,438-point lower shadow.

Fed Holds Rates Steady but Hawkish Tone Emerges: Three Officials Dissent, September Rate Hike Alert Rises

The U.S. Federal Reserve (Fed) announced its latest interest rate decision early Thursday morning (May 30, Taiwan time), holding rates steady as widely expected. However, three voting members dissented, advocating for a 25-basis-point rate hike—highlighting growing internal divisions over inflation risks. This presents an early challenge for newly appointed Fed Chair Kevin Warsh, who took office in May.

〈Yageo Earnings Call〉Book-to-Bill Ratio Soars to 2.2; Customers Willing to Pay Premium for Long-Term Contracts; No Share Buyback Plan for Now

Passive component giant Yageo (2327-TW) held its earnings briefing on Saturday (May 29). Management reported that the book-to-bill (BB) ratio jumped sharply to 2.2 by end-June. Third-quarter operations remain strong, and if raw material costs continue to rise, price adjustments may be considered. Customers have also expressed interest in negotiating long-term supply agreements (LTAs) to secure stable supply.

Domestic Demand Strong; Taiwan’s Q2 GDP Revised Up to 12.92%, Third Consecutive Quarter Above 10%

Taiwan’s Directorate-General of Budget, Accounting and Statistics (DGBAS) released its preliminary estimate for Q2 2024 real GDP growth on Saturday (May 31), revising it up to 12.92%—an increase of 2.09 percentage points from the May forecast. This marks the third consecutive quarter with growth exceeding 10%, driven by better-than-expected real growth in capital formation (including fixed investment and inventory changes), private consumption, and exports.

Powerchip Founder Huang Chong-ren Passes Away: A Semiconductor Legend Who Overcame Debt Crisis

Powerchip Semiconductor (6770-TW) issued a major announcement on Friday (May 31), stating that Chairman and Founder Dr. Huang Chong-ren passed away peacefully in his sleep at home due to cardiopulmonary failure. Vice Chairman Hsieh Tsai-chu will temporarily assume the chairman’s duties per regulations. Operations will continue as planned, and all employees remain committed to carrying forward Dr. Huang’s vision of advancing Taiwan’s high-tech industry.

〈Central Bank of Taiwan Meeting Minutes〉Rate Hike Signals? Inflation Warnings Spark Rare Hawkish Remarks from Two Directors

The Central Bank of Taiwan recently released the summary of its second-quarter monetary policy meeting. Two directors made unusually clear statements, suggesting that “interest rates should no longer remain on hold” and that “now is a good opportunity to raise rates and normalize monetary policy.” While many directors emphasized the need for caution due to sectoral disparities, the rising hawkish sentiment suggests the bank may face a difficult decision on whether to initiate a rate hike at its third-quarter meeting.