Taiwan Stock Market Rebounds to 46,000 with MediaTek Hitting Limit Up and TSMC's Support! AI Supply Chain Stocks Shine

Taiwan's stock market opened strongly in September, posting a significant gain of over 820 points and closing at 46,948.72, up 1.78% with a trading value of approximately TWD 1.08 trillion. The market opened higher and continued to rise throughout the day, briefly gaining over 700 points intraday.

The GreTai Securities Market (OTC) also performed robustly, with its index closing up 2.26%, outperforming the main exchange.

The rally was primarily driven by large-cap electronics stocks. TSMC saw heavy buying toward the close, ending up 1.46%. UMC rose 2.71%, and ASE Holding gained 4.45%.

MediaTek emerged as the market's focal point, surging to the daily limit-up price following reports of investment from NVIDIA. The stock opened sharply higher and quickly reached its upper limit, closing at NT$4,315.

Investor funds flowed into AI-related supply chain stocks. In the IC design sector, several stocks besides MediaTek hit the daily limit. AI server, ASIC, and high-speed transmission-related companies also attracted strong investor interest.

The optical communications sector performed strongly as well. Frontline Optoelectronics hit the limit-up, while Lightwave and Suncom surged. Market attention remains focused on the growing demand for high-speed data transmission driven by AI applications.

High-priced stocks also showed strong momentum. InnoVix rose 6.57%, while Winson, ProMOS, and Etron all hit the daily limit. ASIX Electronics gained 8%. Additionally, anticipation for Apple's upcoming product launch in September boosted interest in PA-related stocks, with Global Unichip and Win Semiconductors showing strong performance.

Analysts noted that Taiwan's market remained resilient despite global market volatility, supported by themes including the AI supply chain, TSMC's ecosystem, and Apple's new product cycle. Current market focus centers on AI servers, ASIC design, PCBs, CPO (co-packaged optics), thermal solutions, and high-speed transmission technologies.