TAIPEI (Taiwan News) — Taiwan's stock market rebounded Friday (Sept. 6), led by Taiwan Semiconductor Manufacturing Company (TSMC) and AI stocks. 

The benchmark Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) rose 1.17% on Friday, closing at 21,435.19 points. Turnover contracted to NT$268.2 billion (US$8.4 billion), marking the lowest volume since Jan. 29, per CNA.

TSMC, the market's heavyweight, closed at its daily high of NT$918, up NT$16 or 1.77%. Foxconn rose NT$1.5 to NT$176.5.

MediaTek climbed NT$35 to NT$1,145. Largan Precision, which reported record-high revenue in August, fell 6.32%.

AI concept stocks, including Quanta Computer (up 3.85%), Wistron (up 4.26%), and Wiwynn (up 3.31%), also performed well.

Hua Nan Securities Investment Management Chairman, Chu Hsiang-sheng (儲祥生), said foreign institutional investors have been net sellers of Taiwan stocks for over 10 consecutive trading days. These sells totaled over NT$200 billion, equivalent to a typical year's selling volume.

However, there have been decreases in their short positions in futures, Chu noted. This suggests a less pessimistic outlook, with the Taiwan stock market showing signs of stabilization.

Chu added that Friday’s market rally was led by TSMC and AI-related stocks. Whether this can sustain a broader uptrend is still unclear.

In the short term, the focus will be on TSMC and AI-related stocks. These include CoWoS (Chip-on-Wafer; Wafer on Substrate), silicon photonics CPO (Co-packaged Optics), and fan-out wafer-level packaging (WLP).