Taiwan's passive component makers are ripping higher on AI-driven demand and a supply squeeze, good news for holders of Yageo and Walsin Technology but a sign of rising costs for electronics buyers.

• Walsin Technology locked limit up within five minutes of the open, with far more buy orders still queued than shares traded.
• Yageo briefly neared limit up and held gains above 9%, and more than 20 of the 33 stocks in the group rose together.
• Japan's Murata is discontinuing parts of nine general-purpose capacitor lines, pushing those orders toward Taiwanese suppliers.
• Both Yageo and Walsin have sold out their capacitor capacity, and both are raising prices as robots, cars and factory automation soak up supply.
• Walsin's sales are climbing month after month, with August revenue up 45% from a year earlier.

Outlook: The group looks set to stay hot into year-end as price hikes take effect, though the wider Taiwan market stalled just short of 50,000 points with local funds selling heavily.