Taiwan Stocks Surge to Record Highs! Memory Chip Sector Leads the Charge with 12 Stocks Hitting Limit Up

Samsung Electronics, the South Korean memory giant, announced its latest financial results, with both revenue and operating profit reaching historic highs and exceeding market expectations. The management also expects the memory supply shortage to continue until 2028. This news immediately drove a surge in Taiwan's memory chip sector on July 31, with 12 companies, including Nan Ya Plastics (2408) and Hua Bang Electric (2344), hitting the price ceiling at the opening bell, making it the strongest sector on the board. The Taiwan Stock Exchange also recovered to 42,000 points.

Samsung's earnings call indicated that the memory business is expected to face more severe supply constraints in 2027 than in 2026, suggesting that the memory supply shortage could persist until 2028. This further strengthens market expectations for the continued growth of AI-driven demand for high-bandwidth memory (HBM) and DRAM.

Nan Ya Plastics (2408) has a dominant market position in the DDR4 market. Although its stock price recently fell from a high of 505 yuan to 322 yuan on July 30, it surged to the price ceiling of 360.5 yuan today, driving a broad-based rally in the memory chip sector. In addition to Nan Ya Plastics, 11 other companies, including Hua Bang Electric (2344), E-Will (2337), Chunghwa Picture Tubes (8299), Pin An (8088), Eternal (5289), Powerchip Semiconductor (6770), Huadong (8110), Yageo (5351), Forcechips (6239), Sinopower (3006), and Nan Ya Plastics (8150), also hit the price ceiling.

(Image source: Cathay Securities)