United Microelectronics (UMC, 2303.TW) surged 9.7% from NT$118.5 to its daily limit-up price of NT$130, while Taiwan’s Weighted Index gained 356.23 points, or 0.77%, to 46,331.45. UMC trading volume approached 320,000 lots, and foreign investors bought 88,988 lots worth NT$11.4 billion, approximately $360.5 million, making it their most-purchased listed stock. The rebound followed the company’s approval of an overseas unsecured convertible bond issuance capped at US$1.8 billion, or approximately NT$57 billion, for equipment and facility engineering in Singapore and the Southern Taiwan Science Park, and an optimistic outlook for high single-digit third-quarter wafer-shipment growth, stable average selling prices, mid-30% gross margins and capacity utilization potentially above 90%. UMC also raised full-year capital expenditure to US$2 billion, approximately NT$63 billion. Taiwan’s eight major government-linked funds sold 19,794 UMC lots worth about NT$2.54 billion, or $80.2 million, after buying 2,733 lots during the previous decline. Analysts said the heavy volume could mark a reversal of UMC’s prolonged weakness if NT$130 holds, although continued government-linked selling could create near-term supply pressure. The longer-term test remains whether the NT$57 billion capital raise and higher spending generate sufficient AI and specialty-process revenue and profit growth to offset potential convertible-bond dilution.