Taiwan stocks rose for the fourth day in five, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after the company said it will invest NT$90 billion (US$2.6 billion) this year in building advanced-chip plants in Taiwan, raising by half its earlier target for capital spending.
Its pledge comes amid expectations the government will lift a ban on Taiwan chipmakers from investing in China by month's end.
TSMC's plan "will reduce the politicians' concerns," said Joey Chen, who manages US$88 million in stocks at Fidelity Investments Securities Investment Trust (富達證券投信). "The investment shows TSMC is pretty positive about the market."
The TAIEX rose 62.17, or 1 percent, to 6209.92. Even with the gain, 309 stocks in the index declined, 204 shares gained, and 44 were unchanged. The total value of trade yesterday fell by a quarter to NT$120.7 billion (US$3.4 billion).
Chipmakers rose after TSMC Chairman Morris Chang (張忠謀)pledged his investment during a meeting this morning with Premier Yu Shyi-kun.