TAIPEI (TVBS News) — Taiwan's stock market surged on Tuesday, with the benchmark index reaching a morning peak of 21,010.89 points, marking a robust increase of 314.99 points that energized investors across the island. Taiwan Semiconductor Manufacturing Company, better known as TSMC (台積電), the crown jewel of Taiwan's tech-heavy market, climbed to NT$929 (around US$28), a rise of NT$19 (around US$0.57) or 2.09% in early trading, fueling the broader market rally.
Key electronics stocks rode the wave of optimism that swept through Taiwan's technology sector. Manufacturing giant Hon Hai (鴻海), also known globally as Foxconn, peaked at NT$149.5 (around US$4.50), up NT$3.5 (around US$0.11), while chip designer MediaTek (聯發科) soared to NT$1,435 (around US$43.22), an impressive increase of NT$45 (around US$1.36) or over 3%. The market buzz intensified following Japanese media reports on Monday that U.S. chipmaker GlobalFoundries is exploring a potential merger with United Microelectronics Corporation, UMC (聯電), Taiwan's second-largest semiconductor manufacturer. Industry analysts noted that if successful, this strategic consolidation would create the world's second-largest foundry, significantly reshaping the global semiconductor landscape.
This merger speculation sent UMC's American Depositary Receipts soaring by over 20% on Wall Street overnight and propelled its local stock price to NT$48 (around US$1.45), a sharp rise of NT$3.35 (around US$0.10) or over 8% in early trading on the Taiwan Stock Exchange. The dramatic price movement prompted an official response from UMC, which tersely stated it would "not comment on market rumors" and confirmed there were "no ongoing merger discussions" in a statement released early Tuesday, though investors continued to bid up shares despite the company's attempt to temper expectations.
On the international front, market participants kept a wary eye on Washington, where U.S. President Donald Trump plans to announce a reciprocal tariff scheme Wednesday, a development that caused initial volatility in U.S. markets as traders attempted to gauge potential impacts on global trade. Despite these concerns, the Dow Jones Industrial Average rose 417.86 points or 1.00% to close at 42,001.76 points, while the S&P 500 increased by 30.91 points or 0.55%, closing at 5,611.85 points. However, technology stocks showed more hesitation, with the Nasdaq falling slightly by 23.70 points or 0.14% to 17,299.29 points, and the closely watched Philadelphia Semiconductor Index dipping by 14.48 points or 0.34%, suggesting some caution in the chip sector that dominates Taiwan's economy.
