Electronics stocks surge ahead! Taiwan stocks reach 28,198 points as three major sectors rise together, and TSMC's market share surpasses 71%

Electrical Machinery and Cable Industries Lead Gains as Funds Shift to Real Economy

Today, the Taiwan stock market closed up 173.27 points amid a bullish wave, with the weighted index settling at 28,198.02 points, a gain of 0.62%. The trading volume reached NT$474.806 billion. Notably, funds are no longer exclusively favoring electronics stocks but are instead flowing significantly into traditional industries, with electrical machinery stocks soaring by 3.26% and electrical cable stocks surging by 4.77%, becoming the most eye-catching winners on the board.

Led by electrical machinery, the traditional industry rally is spearheaded by key stocks like Yadak-KY (1590), which performed remarkably with a single-day increase of 6.11%, closing at NT$973; Hwa Chong (1519) also performed strongly, rising over 6% to NT$807. Simultaneously, heavyweight stocks such as Koyo, Tatung, and Teco also gained over 3%, clearly reflecting that major funds are actively accumulating opportunities in this wave of traditional industries.

In the cable sector, Formosa Plastics (1605) took the lead, with an almost 8% increase, closing at NT$31.85; Hua Rong, Great A, and E-Town also followed suit. This rotation among related stocks clearly signals that the market is re-evaluating the value of traditional industries.

TSMC Continues to Rise, Supporting the Market; Electronic Blue Chips Stabilize and Bottom Out

Although the focus has shifted to traditional industries, electronic blue chips still play an important role. TSMC (2330), the national semiconductor champion, rose by NT$10 today, a 0.68% increase, closing at NT$1,480, continuing to support the market. Hon Hai (2317) edged up slightly by 0.44% to NT$227; MediaTek (2454) increased by 0.72% to NT$1,405. However, some tech blue chips experienced pullbacks, with Delta Electronics and Quanta Computer falling by 0.74% and 0.52%, respectively, indicating that the market is beginning to undergo structural adjustments.

Global Foundry Dominance Consolidates, Market Share Reaches New High

Latest industry data further reinforce the bullish outlook on electronics stocks. According to TrendForce research, the global foundry market will continue to expand into Q3 2025, with the top ten manufacturers’ combined revenue increasing by 8.1% quarter-over-quarter to reach US$45.1 billion. TSMC’s market share further increased to 71%, expanding again from Q2, solidifying its position as the global leader.

TSMC’s Q3 revenue was even more impressive, driven by demand from smartphones and high-performance computing (HPC). The peak season for new iPhone stockpiling and the mass production of NVIDIA’s Blackwell platform supported TSMC’s quarterly revenue approaching US$33.1 billion, a 9.3% increase quarter-over-quarter, with wafer shipments and average selling price (ASP) rising in tandem.

Samsung, in second place, holds a 6.8% market share; SMIC (Semiconductor Manufacturing International Corporation) ranks third with about 5.1%, and UMC (United Microelectronics Corporation) is fourth with 4.2%. Chinese manufacturers maintain competitive advantages in both advanced and mature process nodes under a dual-track layout.

Industry Outlook Contains Variables; Investors Should Stay Cautious

However, the report also warns that geopolitical risks and rising memory prices, which introduce supply chain uncertainties, are making the market more cautious about end-demand in 2026. The growth of wafer foundry output in Q4 may slow down, and investors should closely monitor this turning point.

Healthy Sector Rotation and More Balanced Capital Allocation

Overall, today’s sector rotation in the Taiwan stock market appears healthy. Supported by solid fundamentals and expanding market share of TSMC, the semiconductor sector remains optimistic for the long term; simultaneously, the inflow of funds into electrical machinery and other traditional industries reflects market expectations of economic resilience.

Investors are advised to closely follow Q3 earnings highlights, especially stocks with growth potential aligned with industry trends, while also paying attention to international capital flows and the seasonal strength of Q4 industries. A more flexible asset allocation between electronics and electrical machinery stocks is recommended.