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TSMC leads Taiwan stocks to record close after rally
Taiwan’s Taiex closed at a record high on February 25, rising 712.3 points to 35,413.1. TSMC’s stock surpassed NT$2,000 (US$63.79) for the first time, gaining 2.54% to NT$2,015 (US$64.27) after a 4.25% rise in its ADRs overnight.
TSMC, which accounts for over 40% of the market value, contributed about 400 points to the index’s increase.
The financial sector declined slightly, with Cathay Financial down 1.66% and Fubon Financial down 1.28%. Foreign investors bought NT$41.3 billion (US$1.31 billion) worth of shares on that day.
🔗 Source: Focus Taiwan
🧠 Food for thought
Implications, context, and why it matters.
Taiwan’s record stock market reveals a high-stakes dependency
- Taiwan’s stock rally leans on semiconductors plus electric machinery, two sectors that now move together.
- TSMC’s rise tracks demand for advanced AI chips plus other high-performance computing chips. That demand lifted revenue and pushed capital spending toward advanced process technologies 1.
- Power use is the pressure point. TSMC used 6.4% of Taiwan’s total electricity in 2021, a load that raised grid strain and fed blackout risk 2. Taiwan Power responded with its NT$564.5 billion Grid Resilience Strengthening Construction Plan, which can lift orders for heavy electrical suppliers such as Fortune Electric and Allis Electric 2.
The AI boom’s ripple effect is remaking heavy industry
- Electric machinery stocks offer a window into how AI demand reaches beyond software and servers.
- AI data centers draw huge amounts of power, which is driving worldwide grid upgrades. Taiwanese manufacturers report more US orders tied to infrastructure improvements 3.
- Transformers, distribution equipment, and other heavy electrical hardware keep these upgrades moving 3. As power investment rises with AI electricity demand, heavy electrical makers can see a longer growth cycle 4.
Recent TSMC developments
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