Aug 3 Pre-Market Taiwan Stock Update | Investment-to-Book Ratio Leaders: Powertech and World, US Chip Act Subsidies and Soaring US Stocks Fuel Record-Breaking 3,186-Point Surge in Taiwan Market

I. Market Analysis

On the previous trading day (July 31), the Taiwan stock market witnessed an epic surge, fueled by the implementation of U.S. semiconductor subsidy policies under the CHIPS Act, a sharp rise in the U.S. Philadelphia Semiconductor Index (SOX), and an extremely optimistic outlook from TSMC's earnings call. The weighted index opened with a gap-up and continued to climb strongly throughout the session, ultimately surging 3,186.45 points (+7.98%) to close at 43,119.75 — setting new historical records for both the largest single-day point gain and percentage increase. Trading volume reached NT$866.84 billion, with market capitalization in the centralized market increasing by NT$5.7 trillion in a single day.

From a positioning perspective, the three major institutional investors collectively bought a net NT$84.676 billion worth of stocks on the centralized market. Foreign investors returned aggressively, buying a net NT$67.554 billion; investment trusts expanded their purchases with a net NT$33.382 billion buy; while proprietary traders sold a net NT$16.26 billion. The GreTai Securities Market Capitalization Weighted Index (OTC) rose 6.63% to close at 347.85, with trading value reaching NT$134.441 billion.

Regarding margin trading, margin loans increased by NT$13.597 billion (outstanding balance: NT$507.463 billion), while short selling positions dropped sharply by 15,890 contracts (outstanding: 188,324 contracts, short-to-equity ratio: 2.06%). The total number of same-day cash trading shares was 2,710,674 (approximately 2.71 million shares), down 1.73 million shares from the previous day.

Market-wide, sectors such as semiconductors, memory, high-end PCB materials, and passive components all surged significantly.

II. Strong Industries

• Memory Manufacturing & Niche ICs (Spot Price Surge & HBM Effect): Benefiting from a global spike in memory spot prices and severe capacity constraints for HBM due to demand from AI servers, market expectations are for Q3/Q4 quotations to jump. Nanya Technology (2408-TW) hit the daily limit up, closing at NT$360.00; Winbond Electronics (2344-TW) also reached the upper limit, closing at NT$130.00; Macronix International (2337-TW) rose 9.48% to close at NT$100.50; Etron Technology (5351-TW) hit the ceiling, closing at NT$88.50.

• Specialty Foundry & Advanced Packaging (Rising Capacity Utilization & AI Orders): U.S.-based AI chip giants have added orders for CoWoS and FOPLP advanced packaging technologies as well as PMICs. TSMC (2330-TW) surged NT$220 to hit the daily limit, closing at NT$2,425.00; MediaTek (2454-TW) jumped 9.89% to close at NT$3,555.00; United Microelectronics Corporation (UMC, 2303-TW) gained 9.55% to close at NT$120.50; Powerchip Semiconductor Manufacturing Corporation (PSMC, 6770-TW) hit the upper limit, closing at NT$42.50.

• Upstream PCB Materials & Glass Fabric (800G Switches & AI Server Demand): Demand for high-frequency, high-speed copper-clad laminates (CCL) and low-DK glass fabric has surged due to AI servers and 800G switches. Taigene Technology (2383-TW) hit the daily limit, closing at NT$4,745.00; Kingboard Chemical Holdings (8358-TW) reached the ceiling, closing at NT$298.00; Fu-Chiau (1815-TW) closed limit-up at NT$66.30; Tacto Technologies (6274-TW) surged to close at NT$1,110.00.

• MLCC Passive Components & MCUs (Inventory Replenishment & Automotive Recovery): AI server demand has caused a surge in MLCC requirements, coupled with completed inventory digestion in automotive and industrial control MCUs. Yageo Corporation (2327-TW) hit the daily limit, closing at NT$502.00; Walsin Technology (2492-TW) rose 9.82% to close at NT$218.00; Nuvoton Technology (4919-TW) gained 9.86% to close at NT$117.00; Sunlord Electronics (6173-TW) climbed 9.81% to close at NT$145.50.

III. Weak Industries

• Commodities & Food (Tech Stock Fund Rotation): Capital rotated heavily into high-beta tech stocks, leading defensive sectors to face profit-taking. Uni-President Enterprises (1229-TW) closed down 0.25% at NT$40.35; Dah Shun Fa (1232-TW) retreated 0.96% to NT$154.50; Taiyen Foods (1220-TW) ended flat at NT$11.20.

• Defensive Telecom & Paper (Reduced Risk Hedging): As market risk-off sentiment cooled, domestic funds rotated out of defensive groups. Chunghwa Telecom (2412-TW) dipped 0.71% to NT$139.50; Taiwan Mobile (3045-TW) fell 1.32% to NT$112.50; Cheng Loong Corporation (1904-TW) declined 1.41% to NT$20.95.

IV. Key Investment Picks by Major Investors

Refer back to our original analysis for strategic stock selection insights!

Disclaimer: This information is for reference only and does not constitute any investment advice. Investors should make independent judgments and bear their own risks.