Taiwan stocks break through the 28,000-point mark! Silicon photonics concept stocks lead the charge, and capital rotation has fully started, kicking off the year-end market.

Today, Taiwan stocks showed strong momentum right from the opening, driven by gains in the four major U.S. stock indices. The market rose more than 300 points in the early session, with the highest intraday level surpassing 28,100 points. Over 24 stocks hit the daily limit-up, and market trading enthusiasm clearly increased. Notably, capital was not concentrated in a single industry but showed healthy rotation, especially with semiconductor, memory, and silicon photonics front-line tech groups all taking turns to advance.

Large-cap stocks steady with progress, electronics stocks begin to rotate

The market leader remains TSMC (2330), with the stock opening higher and climbing further, reaching a high of NT$1,470, up 2.8%, significantly contributing to the market’s gains. Hon Hai (2317) also performed steadily, with an intraday increase of about 1.8%. However, MediaTek (2454) showed a pattern of opening high and then declining, with a drop of over 1% at one point, indicating internal capital within the electronics sector is beginning strategic reallocation. This rotation phenomenon reflects a structural shift in the market, from traditional large-cap stocks toward emerging growth stocks.

Memory group explodes across the board, foreign investors raise targets to boost buying

Memory-related stocks became the biggest dark horse today. Powerchip (6770) surged to hit the daily limit at NT$40.45 immediately after opening, with a trading volume of 460,000 shares, becoming a market hotspot. Nanya Technology’s subsidiary, Fuman (8131), also performed strongly after announcing a NT$700 million investment to expand advanced packaging capacity to meet AI and high-performance computing (HPC) demands, hitting the limit at NT$56.3, with over 12,000 buy orders hanging above. Analysts believe that recent target price upgrades by multiple foreign institutions are the main reason for early positioning by buyers.

Silicon photonics concept stocks flourish, optical communication applications look promising

Beyond traditional semiconductors, silicon photonics concept stocks also performed brilliantly, demonstrating the market’s strong optimism for high-speed transmission technology. GaAs wafer foundry Win Semiconductors (3105) surged to a limit-up of NT$191 after some consolidation earlier in the week. Market analysis indicates that NXP Semiconductors announced withdrawal from GaN 5G power amplifier business, and Taiwanese supply chains are expected to benefit from order transfers, prompting related companies to preemptively position.

Silicon photonics stocks are further activating. Star Light Optoelectronics (4979) rose over 9% intraday, Wits (6706) up more than 8%, and others like BoroWave (3163), Pan Quen (6830), and Walsin Technology (2344) also gained over 5%. The collective rise of these silicon photonics stocks reflects ongoing market confidence in optical communications and data center high-speed interconnects as long-term trends. As AI applications explode, data transmission needs from cloud to edge devices will continue to grow, making silicon photonics a key solution to bottlenecks.

Healthy industry rotation with balanced multi-sector progress

Today’s market highlight is the balanced allocation of capital. Besides tech stocks, other industries also performed well:

Telecom stocks such as New Rejuvenation (4909), China Telecom (6163), and Yao Deng (3138) all hit the daily limit-up; electronic component manufacturers like Yijia (2402), Winde (6761), and Walsin (2313) showed strong performance; traditional sectors including construction, chemicals, computer peripherals, and automotive also saw gains, with companies like Gongxin (5521), Rishenghua (1735), Dazhong Holdings (3701), and Jimao (1587) hitting the limit-up. This cross-industry rally indicates that market risk appetite has clearly increased, with various sectors seeking thematic or rebound opportunities.

Year-end portfolio building begins, focus on trend-based targets for strategic positioning

Overall, Taiwan stocks broke through consolidation zones today, mainly driven by international market momentum and domestic capital deployment. Analysts point out that as AI applications continue to expand, the entire supply chain—from chip manufacturing processes to high-speed transmission, memory, and advanced packaging—will face long-term growth drivers. The strong performance of silicon photonics stocks is a clear signal that the market is proactively positioning for high-end applications.

Investors should focus on targets recently upgraded by foreign institutions, with technological leadership or clear operational outlooks for next year. However, caution is needed regarding rapid sector rotation; avoid blindly chasing highs, and instead select core stocks protected by industry trends. Also, keep an eye on international market movements and trading volume changes as important references for decision-making.