TAIPEI, Jan 20, 2026, 07:47 (GMT+8) — Premarket
- TSMC pushed Taiwan shares to yet another record close in the latest session.
- Memory stocks surged on news of a Micron deal, helping chip-linked names hold steady.
- Traders are closely eyeing if global risk jitters will ripple into Asia’s market open.
Shares of Taiwan Semiconductor Manufacturing Co edged toward record highs on Tuesday, buoyed by a late-session rally that pushed the Taipei benchmark to fresh peaks.
TSMC (2330.TW) holds a commanding weight in Taiwan’s index and is a key player in the AI hardware supply chain. Its movements often signal to both local funds and offshore investors how demand for cutting-edge chips is shaping up.
The timing feels off. Global markets have displayed bouts of risk aversion linked to new tariff threats, which can drag down pricey tech stocks even if company updates remain quiet.
TSMC ended Monday up 1.15% at NT$1,760, having hit an intraday high of NT$1,780. The Taiex also closed at a fresh record, reaching 31,639.29. Foreign institutional investors sold a net NT$28.03 billion. Cathay Futures Consultant analyst Tsai Ming-han called the early dip and swing back “reasonable consolidation” following the stock’s recent surge. (Focus Taiwan – CNA English News)
Chip sentiment received a boost from the memory sector as well. Micron Technology announced it signed a letter of intent to acquire Powerchip’s P5 fab site in Taiwan for $1.8 billion. TrendForce noted the deal would increase Micron’s advanced-process DRAM capacity — DRAM being a type of computer memory chip — with production set to ramp up starting in 2027. (Reuters)
TSMC’s recent rally still rides on last week’s earnings and forecast. The company highlighted an “AI mega trend,” noting strong demand from customers for capacity. It expects 2026 revenue to jump nearly 30% in U.S. dollars and plans to boost capital spending to $52-$56 billion. CEO C.C. Wei expressed caution about the investment pace, warning, “We’re also very nervous about it … that would be a disaster for TSMC.” Ben Barringer, Quilter Cheviot’s head of technology research, described the update as “a very positive start” to earnings season for big tech. (Reuters)
The immediate issue is whether the stock requires a breather. Given TSMC’s massive scale, even minor adjustments in holdings can ripple through the market—especially if foreign investors move in the opposite direction.
There’s also a straightforward risk: a dip in AI server demand or fresh trade tensions could hit chip stocks simultaneously. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars, following President Donald Trump’s recent tariff warnings that rattled global markets. (Reuters)
TSMC will release its January monthly sales report on Feb. 10. Investors typically look at this as a quick gauge of order momentum ahead of the upcoming earnings season. (Tsmc)
