Taiwan's passive component makers are surging as capacitor price increases finally start showing up in profits — good news for investors in the group.

• Holy Stone jumped to its daily limit, with Chilisin following it up.
• Money is spreading across the whole passive component sector.
• Price hike letters went out earlier, but the higher prices only start hitting sales this quarter.
• Holy Stone's July profit beat expectations, and it expects capacitors to lift both sales and margins further.
• Foreign investors and local funds were buying heavily on Friday.

Outlook: High-end capacitor supply stays tight, and analysts see earnings more than doubling next year with a target price well above today's level.