Memory and silicon photonics team up, Taiwan stocks break through 28,100 points to reach a new high

With the four major U.S. stock indices closing in the green across the board, the Taiwan stock market demonstrated a strong upward momentum today (22nd). It surged nearly 300 points in the early trading session, and the gains continued to expand, reaching over 470 points at one point during the session, successfully breaking through the 28,100-point psychological barrier. Driven by active capital deployment into the semiconductor supply chain, more than 24 listed and OTC stocks hit the daily limit-up, reflecting high market trading activity and strong bullish sentiment.

Memory Group Explodes Across the Board, Packaging and Testing Concept Stocks Lead the Charge

The most eye-catching highlight of this rally is the collective stance of the memory group. Recently, several memory-related stocks have been upgraded by multiple foreign institutions, becoming the focus of market strength. Among them, Powerchip Semiconductor Manufacturing Co., Ltd. (6770) surged to hit the daily limit at 40.45 NT dollars in the early session, with trading volume exceeding 460,000 shares, making it the market’s most popular stock.

More notably, Fuman Technology (8131), the leader among packaging and testing concept stocks under Nanya Technology, announced a 700 million NT dollar investment to establish advanced packaging capacity, aiming to position itself in AI and high-performance computing (HPC) memory applications. This news drove the stock price to hit the daily limit at 56.3 NT dollars, with over 12,000 buy orders hanging in the order book during the session, indicating institutional and retail investors are optimistic about its long-term growth potential.

Silicon Photonics and Compound Semiconductors Initiate, Contract Win Benefits Attract Positioning

In addition to memory, silicon photonics and third-generation semiconductor groups are also gaining capital attention. GaAs wafer foundry giant, Win Semiconductors (3105), after consolidating last week, showed strong momentum again today, hitting the daily limit at 191 NT dollars before noon. Market interpretation suggests that this rise is mainly due to NXP Semiconductors (NXP), a Dutch semiconductor giant, announcing its exit from GaN (Gallium Nitride) 5G power amplifier (PA) chip manufacturing, with expectations that Taiwan’s related supply chain could benefit from contract transfers, attracting buyers to position early.

The silicon photonics group is showing a unified front, with Huaxing Photonics (4979) rising over 9% at its peak, Wits (6706) up more than 8%, and BoroWave (3163), Pan Quen (6830), and Walsin Technology (2344) all gaining over 5%. The overall strength of the group reflects the market’s continued optimism for optical communication and high-speed transmission long-term themes.

Blue Chips Provide Steady Support, Capital Rotates Healthily Across Sectors

Taiwan Semiconductor Manufacturing Company (TSMC) (2330), the market leader, continues to play the role of the bullish leader, opening high and climbing higher, reaching a high of 1,470 NT dollars during the session, up nearly 2.8%, providing solid support for the broader market. Hon Hai Precision (2317) also steadily advanced, with an increase of about 1.8%. In contrast, MediaTek (2454) opened high but then declined, turning negative at one point with a drop of over 1%, reflecting flexible capital rotation among electronic stocks.

From the market structure perspective, capital is not overly concentrated but is rotating healthily. New revival stocks in communication networks (4909), Huadian Power (6163), and Yaodeng (3138) hit the daily limit-up; electronic component stocks such as Yijia (2402), Winde (6761), and Walsin Technology (2313) performed strongly; construction, chemical, computer peripherals, and automotive stocks like Gongxin (5521), Risheng Chemical (1735), Dazhong Holdings (3701), and Jimao (1587) also hit the daily limit-up. This phenomenon indicates an increased risk appetite in the market, with funds actively seeking thematic or lagging stocks for rebound.

Deepening AI Applications Drive, Year-End Market Gradually Starts

From a macro trend perspective, Taiwan stocks have successfully broken through recent consolidation ranges, driven by international stock markets and internal capital deployment. As AI applications continue to expand, the increasing demand for computing power from cloud to edge devices will long-term drive growth in advanced semiconductor processes, high-speed transmission, memory, and advanced packaging supply chains.

Investors should pay attention to stocks recently upgraded by foreign institutions, with technological advantages or clear operational outlooks for next year, to position themselves for the year-end rally. However, due to rapid market rotation, it is advisable to avoid chasing high prices excessively, focus on stocks with industry trend protection, and continuously monitor international stock market movements and trading volume changes as important references for decision-making.