TAIPEI (Taiwan News) — The Taiwan stock market ended lower on Monday after early gains, driven by strong performances in the chip and tech sectors, were offset by growing concerns over potential US tariffs on semiconductors.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, dropped 15.68 points to close at 19513.09, pulling back from an intraday high that briefly pushed the index above the 20,000-point mark. Turnover totaled NT$461 billion (US$14.2 billion), per CNA and CTEE.
Investor sentiment turned cautious after US President Donald Trump’s remarks on Monday, indicating that semiconductors, cell phones, and computers would soon be placed in a separate tariff category, with current exemptions expected to be short-lived. US Commerce Secretary Howard Lutnick also said that individual tariffs on semiconductors and electronics would likely be implemented “within one or two months.”
TSMC surged past NT$900 (US$28) in early trading, sparking a rally in high-priced integrated circuit design stocks like Alchip Technologies, M31 Technology, and Novatek Microelectronics, along with major electronics firms such as Foxconn and Asus. However, the rally lost momentum in the afternoon as investors took profits.
TSMC ended down 2.7% at NT$865. MediaTek edged up 1.08% to NT$1,400, while Foxconn rose 2.97% to NT$138.5.
By sector, computer equipment stocks led the gains with a 3.84% increase, followed by optoelectronics and steel, which rose 3.3% and 3.01%, respectively. Semiconductors, rubber, and department stores lagged behind, falling 1.85%, 1.79%, and 1.22%, respectively.
Foreign investors were active in financial stocks, with Shin Kong Financial topping the buy list at nearly 43,000 shares. Other popular picks included KGI Financial, Nanya Technology, China Steel, and UMC, each seeing net purchases exceeding 10,000 shares.
In contrast, aviation stocks experienced heavy sell-offs. China Airlines led the net selling with 34,800 shares offloaded, followed by Eva Air with 30,000 shares.
Mega International Investment Services Deputy General Manager Huang Kuo-wei (黃國偉) said that a recent US customs update distinguishes semiconductors from electronics. While this means they are not fully exempt from tariffs, they will avoid the steep duties some had feared, which Huang referred to as “eased negativity.”
Huang cautioned that if tariffs are imposed, the potential gains for Taiwan’s chip sector would be limited, noting that TSMC’s decline Monday reflects market concerns. Investors are now focused on the semiconductor giant's upcoming earnings call on Thursday for updates on its outlook, tariff impacts, and global expansion, especially in the US
Despite recent market fluctuations, Huang pointed out that net short positions in the TAIEX have not increased, suggesting that foreign investors do not expect a sharp market drop. Overall, the market remains relatively stable.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
