The TAIEX yesterday closed at an all-time high, topping 18,500 points as the bellwether electronics sector led an upturn on the back of a rally on the US markets overnight, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) extended its momentum from a session earlier on the back of its strong fundamentals.
The TAIEX closed up 255.84 points, or 1.4 percent, at the day’s high of 18,526.35, on turnover of NT$325.112 billion (US$11.76 billion).
“Due to its heavy weighting, TSMC’s gains basically served as an anchor for the broader market,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said, referring to the chipmaker’s contribution of about 210 points to the TAIEX’s rise yesterday.
After a 2.6 percent increase on Monday, TSMC rose by 3.96 percent to close at NT$656.
TSMC’s gains gave a 2.17 percent boost to the electronics sector, which closed at 903.09, while the semiconductor subindex rose 2.74 percent.
“As foreign institutional investors returned to the trading floor after the New Year holiday, they started rebuilding their portfolios by buying into TSMC,” Huang said. “Buying TSMC is basically a good way to lift the TAIEX.”
Foreign institutional investors bought a net NT$25.71 billion of shares on the main board after net purchases of NT$15.53 billion on Monday, TAIEX data showed.
TSMC’s buying spread to other semiconductor stocks, with integrated circuit designer MediaTek Inc (聯發科) up 1.30 percent to close at NT$1,165 and IC packaging and testing services provider ASE Technology Holding Co (日月光投控) rising 1.42 percent to close at NT$107.
Bucking the upturn, United Microelectronics Corp (聯電), a smaller contract chipmaker, fell 0.63 percent to close at NT$63.
Largan Precision Co (大立光), a supplier of smartphone camera lenses to Apple Inc, made a strong showing due to bargain hunting, Huang said.
“Largan had been in consolidation mode for a long time and has become technically stable,” he said. “Its relatively low valuation appears attractive for the moment.”
Largan rose 7.8 percent to close at NT$2,695.
Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co (鴻海精密) rose 0.49 percent to close at NT$103.5, while Yageo Corp (國巨), the world’s third-largest maker of multi-layer ceramic capacitors, soared 8.55 percent to close at NT$533.
“As the electronics sector accounted for more than 70 percent of Tuesday’s total turnover, old-economy stocks were largely marginalized throughout the session,” Huang said.
“Foreign institutional investors are expected to continue to rebuild their positions on the local main board after their massive sell-off last year, but, local investors should watch whether the market will see overshooting in the short term, which would result in volatility,” Huang said.
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
INVENTORY DOUBLED: Key parts have backed up in warehouses, halting notebook production, as Acer’s CEO said that a gradual reopening would not solve the problem PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving. While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference. “Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.” With key components unable to be delivered and backing up in
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
Covestro Taiwan Ltd (台灣科思創) yesterday launched a new research and development center that is to specialize in resin synthesis and fiberoptic coating after its parent company, Covestro AG, acquired a resins business from Royal DSM, it said. The German company in September 2020 agreed to buy the resins and functional materials business from Royal DSM for about 1.61 billion euros (US$1.69 billion), corporate data showed. The Dutch company’s local units, such as Covestro Resins (ROA) Ltd (帝昇) and Covestro Resins (Taiwan) Ltd (新力美), are next month to be integrated into Covestro Taiwan Ltd, with their employees continuing resins development, Covestro Taiwan said. The