Foreign investors were net sellers overall but poured about NT$8.65 billion into the two memory chip makers, as limit-up moves spread across Taiwan's semiconductor sector.
Taiwan shares finished higher on Aug. 3 after opening lower, with the TAIEX closing up 266.66 points, or 0.62%, at 43,386.41 on turnover of NT$845.84 billion (approximately $26.1 billion). Memory chip stocks became the main support for the market, with seven names including Winbond Electronics, Nanya Technology and Macronix International hitting their daily price limits. Foreign investors and proprietary traders drove much of the buying in the top two memory makers, even as foreign investors were net sellers of approximately NT$19.19 billion (approximately $591.2 million) overall. Taiwan Stock Exchange data showed foreign investors bought a net 25,984 lots of Winbond, the day's top foreign-bought stock, and 12,888 lots of Nanya Technology, the fourth most bought. Based on transaction prices, their combined purchases in the two stocks reached about NT$8.65 billion (approximately $266.5 million), with Nanya alone accounting for more than NT$5 billion (approximately $154.0 million). Nanya extended momentum from its July 31 limit-up close, ending Aug. 3 at another daily limit of NT$396.5, while foreign investors reversed a four-day selling streak to become net buyers. That shift fueled speculation over whether part of the move reflected short-term overnight flip trading, while others tied the rally to memory chip inventory replenishment. Across Taiwan's three major institutional investors, combined net purchases totaled 26,724 lots of Winbond worth about NT$3.74 billion (approximately $115.2 million) and 13,510 lots of Nanya worth roughly NT$5.27 billion (approximately $162.3 million), with investment trusts selling both names and buying led by foreign investors and proprietary dealers. The rally broadened to Elite Semiconductor Microelectronics, Etron Technology, AP Memory Technology and Walton Advanced Engineering, all of which also closed at their daily limits. Elite Semiconductor's second-quarter earnings, reported last week, were a key catalyst: net profit attributable to parent was NT$5.91 billion (approximately $182.0 million), up 286% quarter-over-quarter, with EPS (earnings per share) of NT$20.36 and gross margin of about 68.6%. Other gainers included Silicon Power Computer & Communications, Phison Electronics, Innodisk and ChipMOS Technologies, each up more than 6%. Still, the advance was not uniform, as ADATA Technology, Transcend Information and Apacer Technology fell 1% to 4%, signaling rotation within the sector. Analysts said memory stocks have benefited from rising-price themes, inventory digestion and better-than-expected earnings, but warned that sharp recent gains increase the risk of chasing highs. Whether foreign buying remains durable is the key factor to watch.