Taiwan's technology stocks strengthened across the board, with UMC and MediaTek both hitting limit-up and the Taiwan stock market approaching its all-time high — good news for shareholders.

• UMC's August revenue rose both month-on-month and year-on-year, marking six consecutive months of growth and a nearly four-year high. Its shares locked limit-up at NT$143, with trading volume the highest on the Taiwan market.
• Institutional investors are optimistic about its cooperation with Intel, advanced packaging, and order transfers in mature-node processes, estimating earnings per share of around NT$7.5 for next year and the year after, with target prices of NT$135 to NT$150.
• MediaTek hit limit-up on reports that Nvidia and other major AI companies had subscribed to its US$3.9 billion overseas convertible bonds. Packaging and testing house King Yuan Electronics and passive component maker Walsin Technology also surged.
• U.S. Federal Reserve officials signalled a dovish tilt, sending the dollar index below 99 and lifting the New Taiwan dollar. The resulting inflow of funds drove the Taiwan market up by nearly 700 points at one stage, taking it above 47,000.
• Tensions in the Middle East, combined with Ukrainian strikes on Russian oil refineries, spurred a scramble for diesel and gasoline supplies. Marine fuel prices in Singapore soared 76%, adding to pressure on shipping costs.

Outlook: As long as rate-cut expectations and AI demand hold up, the Taiwan market has a chance of challenging its previous high, but freight costs pushed up by fuel shortages will be a concern.