The local integrated circuit (IC) sector moved higher in Taipei trading yesterday on expectations that the upcoming annual SEMICON Taiwan exhibition will come up with positive leads to help IC stocks spark more buying interest, dealers said.
The current buying also resulted from the consolidation mode in which the local semiconductor sector had moved in recent sessions and their attractive valuations lured many bargain hunters to enter the trading floor in the current session, the dealers said.
Large cap semiconductor stocks, such as contract chip maker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and IC packaging and testing services provider Siliconware Precision Industries Co (SPIL, 矽品), posted significant gains, giving a strong boost to the broader market, they added.
TSMC shares — the most heavily weighted stock in the local market — rallied 3.36 percent to NT$128.5, while SPIL shares soared 3.78 percent to NT$45.25.
IC designer MediaTek Inc (聯發科) shares surged 3.1 percent to NT$515.
The semiconductor subindex increased 2.81 percent, while the weighted index on the TAIEX gained 0.81 percent.
“The SEMICON Taiwan trade show served as a catalyst to today’s gains among these IC stocks. Many investors simply seized the exhibition as a reason to pick up semiconductor stocks by taking advantage of their recent consolidation,” Grand Fortune Securities (福邦證券) analyst Chen Wei-tai said.
SEMICON Taiwan is scheduled to open tomorrow and run through Friday. The 19th annual SEMICON exhibition is expected to become the largest ever, with almost 1,400 booths demonstrating advanced IC technology.