Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-09-10

Top developments

TAIEX hits second-highest close on record; foreign investors lead rally

On Monday, September 7, the TAIEX soared over 700 points to close at 47,326, marking its second-highest level in history. This surge was propelled by large-cap semiconductor stocks rallying in sympathy with U.S. counterparts from the previous week. Foreign institutional investors aggressively bought back into the market, netting a massive NT$88.3 billion (approx. US$2.8 billion) in purchases, while the three major institutional groups combined for over NT$100 billion in net buying.

TSMC August revenue up 53% as AI demand outstrips supply

On September 10, TSMC reported August revenue of $16.35 billion, a 53% year-over-year increase that blew past its own guidance. The company reported that production capacity is fully booked to meet surging AI chip demand, leaving customers waiting for supply. Despite the record revenue, shares dipped slightly in premarket trading, reflecting broader market caution, but the fundamental data reinforces the "technology island" thesis for long-term investors.

Mid-week drift as markets await U.S. inflation data

Following the Monday rally, the TAIEX closed slightly higher on Wednesday, September 9, after giving up early gains amid caution ahead of scheduled U.S. inflation data releases. On Tuesday, September 8, the index drifted lower with no clear direction as U.S. markets were closed for a public holiday. Dealers noted that while semiconductor stocks remained supported, financial stocks lagged, creating mixed sector performance.

Foreign reserves rebound above US$600 billion

The Central Bank of the Republic of China announced that Taiwan’s foreign exchange reserves rose again to exceed US$600 billion in August, ending two months of declines. This increase reflects strong capital inflows and trade surplus dynamics, providing a buffer against potential currency volatility as the New Taiwan dollar has shown resilience against the U.S. dollar.

Local view

Local media highlighted the "record-breaking" nature of the foreign inflows on September 7. United Daily News (UDN) reported that foreign investors made their fourth-largest single-day buy in history, purchasing NT$88.3 billion worth of stocks. Analysts cited by UDN, including Chen Yi-kuang, Chairman of Fubon Financial Investment Advisory, suggested that the TAIEX could challenge the 50,000-point mark in September under optimistic scenarios, driven by the strength of the "King of Stocks" TSMC and "King of Stocks" in the secondary market, Silergy Corp.

Cnyes (Anue) noted that while foreign funds bought heavily, local investment trusts and self-operating dealers were net sellers, creating a dynamic where foreign money drove the index higher against domestic profit-taking. They highlighted that memory chip stocks and optical components were key beneficiaries of the buying momentum.

Context & numbers

• TAIEX Close (Sept 7): 47,326 points (+775 points, +1.66%), second-highest close on record.
• Foreign Net Buy (Sept 7): NT$88.3 billion.
• Three-Institutional Net Buy (Sept 7): Over NT$100 billion.
• TSMC August Revenue: $16.35 billion (+53% YoY).
• Foreign Reserves: >US$600 billion (August data).
• Sector Performance: Semiconductor and optical sectors led gains; financials lagged during mid-week sessions.

On the radar

• U.S. Inflation Data: Markets remain sensitive to upcoming U.S. CPI/PCE data releases, which will dictate Fed rate expectations and potentially influence foreign flows into emerging tech hubs like Taiwan.
• TSMC Technical Levels: With revenue hitting records, watch for TSMC stock price consolidation vs. breakout attempts near recent highs.
• Currency Stability: Monitor the New Taiwan dollar against the USD, as the central bank maintains vigilance against disorderly volatility, though recent reserves growth suggests ample ammunition for intervention if needed.