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Taiwan Stock Market Closes Lower Amid Concerns Over US Chip Tariffs

Strategic Insights

— 1 min read

The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) fell 213.23 points to close at 23,447.36 on Wednesday, dragged down by losses in Taiwan Semiconductor Manufacturing Co. (TSMC) due to investor concerns over potential US chip tariffs and an alleged information leak involving the company. Despite the day's pullback, analysts remain optimistic about Taiwan's overall market structure, citing a record high in exports to the US for the first half of 2025.

Key Takeaways:

  • TSMC dropped 2.17% to close at NT$1,125, contributing significantly to the index's decline, while MediaTek fell 1.49% to NT$1,320 and Foxconn edged up 0.81% to NT$186.
  • Broader market sentiment outside of TSMC remained relatively stable, according to First Capital Management analyst Liu Cheng-yu.
  • Drone and defense-related stocks outperformed, with Ta Ya Electric Wire and Cable hitting its daily price limit after being identified as a key component supplier for drones.
  • AI-related stocks also gained, particularly those involved in cooling solutions and backup power systems, with Asia Vital Components rising 2.87% to NT$1,005.
  • Stl Technology, a provider of battery backup units (BBUs) for servers, hit its daily limit and closed at a record NT$128.5.
  • Despite the day's pullback, Liu said Taiwan's overall market structure remains healthy.
  • Ministry of Finance data shows Taiwan's exports to the US reached a record high of US$78.9 billion in the first half of 2025, marking 51.4% year-on-year growth.
  • ICT products and electronic components accounted for about 70% of the total exports.
  • The impact of US tariffs set for Thursday on Taiwan's core exports to the US remains to be seen.
  • Investors are encouraged to conduct their own research and analysis before making investment decisions.

Statistics:

  • TAIEX fell 213.23 points to close at 23,447.36.
  • TSMC dropped 2.17% to close at NT$1,125.
  • MediaTek fell 1.49% to NT$1,320.
  • Foxconn edged up 0.81% to NT$186.
  • Asia Vital Components rose 2.87% to NT$1,005.
  • Stl Technology closed at a record NT$128.5.
  • Taiwan's exports to the US reached US$78.9 billion in the first half of 2025.
  • This marks a 51.4% year-on-year growth.
  • ICT products and electronic components accounted for about 70% of the total exports.

Sources:

  • CNA
  • CTEE
  • First Capital Management
  • Ministry of Finance

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