The leading contract chipmaker Taiwan Semiconductor Manufacturing (TSM - Get Report) was up 4.6%, the most active stock on the preopen Instinet ECN. A second Taiwan chipmaker, United Microelectronics (UMC - Get Report) was also on the rise, up 2.1% in active trading.

Sunday, the Taiwan government announced it would scrap its limits on trade and investment with communist China and attempt to normalize trade relations. The move could allow Taiwanese manufacturers to the expand on the mainland.

Taiwan Semiconductor was active at the end of last week on a newspaper report that Merrill Lynch was preparing a warrants issue for the stocks common shares, which would be available to U.S. investors who now own the much more expensive ADRs. Investors feared U.S. investors would sell off large stakes in the ADRs in favor of the warrants, but Merrill Lynch Thursday denied the rumors.

Taiwan Semi also last week announced its first 12-inch silicon wafer, significantly boosting its production potential over the old 8-inch wafers.