Taiwan stock market rebounds after heavy foreign selling, TSMC drives rally

Foreign investors sold more than NT$2.47 trillion over four consecutive days, pushing the Taiex index down 2.31% to 45,479 points. The sell‑off hit electronic‑weight stocks, passive component makers, memory chips and PCB families, while biotech and financial groups showed relative strength.

The following session saw the index regain ground, edging toward the month‑line as TSMC led a 25‑point gain. Despite continued foreign outflows, domestic investors bought back shares, and ABF carrier and silicon‑photonic stocks rallied after TSMC announced a three‑year plan to expand PIC capacity thirty‑fold. Aerospace, plastics and other defensive sectors also posted strong gains.

On the market open, Nanya and Largan hit limit‑up moves, and the index surged more than 200 points to break the 45,600 level. Analysts cite AI‑related demand, upcoming earnings reports and rising power‑supply prices as support for the sustained high‑level trading range.