Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-03
Taiwan's benchmark TAIEX surged to a record closing high of 48,353 points on October 1, driven by TSMC's climb to NT$2,510 and broad strength in the semiconductor sector. Foreign institutional investors turned net buyers with NT$308.57 billion in buy-sell surplus on September 30, signaling sustained appetite for Taiwan equities ahead of U.S. employment data.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-03
Top developments
TAIEX Closes at Record 48,353; TSMC Breaks NT$2,510 Barrier
On October 1, the TAIEX closed at a new all-time high of 48,353.49 points, up 413.36 points (0.86%), with TSMC hitting NT$2,510—its highest closing price to date. The rally was led by a broad electronics sector advance following overnight U.S. tech strength, though gains were initially capped by caution ahead of U.S. September nonfarm payroll data. The intraday low reached 47,893.42 before buyers stepped in aggressively.
Foreign Investors Post NT$308.57 Billion Net Buy on September 30
Three-institutional-investor data for September 30 showed foreign investors leading the charge with a net buy of NT$308.57 billion, while domestic investment trusts added NT$82.91 billion and self-managed dealers contributed NT$12.4 billion. Total institutional net buying reached NT$403.88 billion, reinforcing the perception that international capital continues to view Taiwan's tech-heavy index as an attractive entry point.
Taiwan Index Surges 65% Year-to-Date; AI Boom Underpins Rally
The TAIEX's climb to record territory reflects a 65% year-to-date surge driven by booming AI and semiconductor demand, robust Taiwan chip exports, and strong earnings momentum in TSMC and related names. The index's gain dwarfs most global equity benchmarks and underscores Taiwan's outsized exposure to AI infrastructure buildout.
Government Pledges Support for TSMC Taiwan Investment Amid Singapore Rumors
On October 2, Taiwan's Ministry of Economic Affairs (MOEA) announced it will help TSMC expand domestic investment, responding to rumors the chipmaker is weighing a new semiconductor facility in Singapore. The statement reassures markets that TSMC remains committed to Taiwan capacity growth despite geopolitical pressures and overseas expansion opportunities.
Market Resilience After Mid-Autumn Holiday; Passive Components Sector Surges
After a catch-up selloff on September 29 (down 392 points following the Mid-Autumn Festival break), the market rebounded strongly on October 1, with passive components and silicon wafer stocks leading sector gains. TSMC's support single-handedly steadied equities during intraday weakness, underscoring the chipmaker's 25%+ weighting in the index.
Local view
Taiwan's financial media celebrated the record close as a milestone for both the index and TSMC. CMoney Forum noted the TAIEX settled at 48,024.60 on September 29 before the October 1 surge, with turnover of NT$7,755.91 billion on the pre-holiday session. ETtoday Finance highlighted TSMC's NT$2,510 close and the recovery to 48,211 points on September 30, with coverage emphasizing the role of passive component makers and ABF substrate makers in driving breadth. UDN Money reported that three-institutional-investor net buying of NT$95.57 billion on October 2 sustained momentum as the market eyed U.S. jobs data. Local analysts underscored the AI chip tailwind as durable, with TSMC's latest capex guidance and foundry capacity fully booked by major hyperscalers.
Context & numbers
- TAIEX close (Oct 1): 48,353.49, up 413.36 points (+0.86%) — all-time closing high
- TSMC (2330) close (Oct 1): NT$2,510, up NT$30 — highest close on record
- September 30 foreign net buy: NT$308.57 billion
- September 30 domestic trust net buy: NT$82.91 billion
- September 30 dealer net buy: NT$12.4 billion
- Total Sep 30 three-institutional net: NT$403.88 billion
- TAIEX year-to-date gain: +65%
- Nasdaq-100 (overnight): Rally in tech equities, particularly semiconductor and AI infrastructure names
- Taiwan foreign exchange reserves (end of July 2026): US$594.27 billion
On the radar
- U.S. September nonfarm payroll data: Expected to be released shortly after market close on October 2–3, which could trigger renewed volatility in tech equities and foreign fund flows into Taiwan.
- October 15 expiration: Analyst predictions point to potential TSMC stock movement around mid-October contract rollovers and earnings-related events.
- TSMC capex and foundry demand: Monitor quarterly guidance updates for signals on AI chip orders and 2nm ramp timing; capacity constraints remain a key valuation driver.
- Taiwan dollar intervention: Central Bank of the Republic of China (CBC) remains committed to smoothing FX volatility only when necessary, per its June 2025 treasury accord; watch for any disorderly NT$ moves linked to foreign flows.
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