Foreign portfolio managers bought a net NT$21.9 billion of Taiwan shares on Wednesday, helping the TAIEX close up 413.36 points at a record 48,353.49 as TSMC rose 1.21 percent to NT$2,510 and substrate makers hit fresh intraday highs.

Turnover reached NT$837.4 billion, according to exchange data cited by local media, as chip equipment names followed a firmer U.S. semiconductor session overnight. Investment trusts added NT$5.86 billion and proprietary desks NT$1.65 billion, giving the market a third straight day of broad institutional buying.

Chip names led the tape

TSMC gained NT$30 after late-session block demand, matching its prior record closing price from June. MediaTek added 1.22 percent to NT$4,980, while printed-circuit-board suppliers Nan Ya PCB, Unimicron and Kinsus touched intraday peaks on advanced-packaging demand. Analysts at local brokerages said the October open benefited from positioning ahead of TSMC’s mid-month earnings call.

Market capitalization on the main board reached NT$158.1 trillion, extending Taiwan’s year-to-date gain to about 66.9 percent in local-currency terms—still leading major Asian benchmarks despite the index trading below its September intraday peak of 48,601.

Futures positioning stayed cautious

Although cash equities drew foreign inflows, traders noted that net short positions in Taiwan index futures rose by 1,403 contracts to 79,554, leaving hedges in place near the highs. Dealers said any failure to hold 48,000 on a closing basis could trigger quick profit-taking from quant funds that keyed on the round number.

Volume slipped about 5 percent from September’s daily average even as prices rose. Strategists at First Securities and Taishin Investment Advisory both said sustained gains need daily turnover back above NT$900 billion to absorb new supply from employee stock sales and ETF dividend season.

ETF and retail flows

October also marks the start of an ex-dividend wave for Taiwan semiconductor ETFs, including products from Taishin and Capital Investment Trust that posted double-digit September returns. Fund managers pitched the payouts as cash-flow complements to chip exposure rather than pure yield plays.

For Thursday’s session, traders will watch whether U.S. tech earnings guidance offsets higher bond yields, and whether foreign funds keep adding Taiwan exposure after the record close. Local desks said substrate shortages remain the swing factor for second-tier AI hardware names even if TSMC holds the index floor.

The Taiwan dollar firmed slightly against the U.S. dollar on the equity inflow, prompting exporters to roll hedges forward as TSMC’s overseas sales translate into larger NT-dollar earnings per ADR equivalent.