Taipei: Shares in Taiwan surged almost 2 percent, setting new closing records, as Taiwan Semiconductor Manufacturing Co. (TSMC) reported unexpectedly strong fourth-quarter results and predicted robust growth for 2026. The Taiex, Taiwan Stock Exchange’s benchmark index, concluded the day up 598.12 points, or 1.94 percent, at 31,408.70, with a trading range between 30,844.63 and 31,475.22. The turnover reached NT$823.36 billion (US$26.08 billion), a significant increase from Thursday’s NT$671.95 billion.
According to Focus Taiwan, TSMC’s investor conference on Thursday revealed impressive fourth-quarter results, surpassing expectations with a gross margin of over 60 percent. The company also projected nearly 30 percent sales growth in 2026 and announced a record capital expenditure plan of up to US$56 billion for the year.
Mega International Investment Services analyst Alex Huang highlighted the impact of these figures, noting that they demonstrated robust AI demand, prompting both domestic and international investors to boost their stock holdings. Following a 4.44 percent rise in its American depositary receipts (ADRs) in the U.S. market overnight, TSMC’s common shares increased by 2.96 percent, closing at NT$1,740.00, contributing approximately 400 points to the Taiex’s rise.
Additionally, a trade agreement between Taiwan and the United States, which reduced U.S. tariffs on Taiwan-made goods from 20 percent to 15 percent, alleviated market uncertainties. Huang remarked on the increased turnover, suggesting that many investors were eager to invest, despite the index facing technical resistance ahead of 31,500 points.
Other tech companies also experienced gains, with United Microelectronics Corp. climbing 6.95 percent to NT$58.50, and smartphone IC designer MediaTek Inc. rising 1.01 percent to NT$1,505.00. The old economy sectors also benefited from the tariff reduction, with Allis Electric Co. surging 10 percent to NT$114.00 and Hiwin Technologies Corp. increasing by 3.05 percent to NT$219.50. In the plastics industry, Nan Ya Plastics Corp. rose 5.88 percent to NT$73.80, while Formosa Plastics Corp. ended up 0.94 percent at NT$43.00.
The financial sector saw a 0.58 percent increase, with Cathay Financial Holding Co. gaining 1.33 percent to NT$76.20 and Fubon Financial Holding Co. closing 0.96 percent higher at NT$95.00. Huang advised keeping an eye on the upcoming earnings season for tech stocks in the United States following TSMC’s strong performance.
According to the Taiwan Stock Exchange, foreign institutional investors purchased a net NT$39.92 billion in shares on the market Friday.