TAIPEI (Taiwan News) — Taiwan stocks opened lower and trended downward throughout Wednesday, dragged down by geopolitical tensions and tech sector concerns.
The US Department of Commerce imposed new export license requirements on Nvidia and AMD for AI chip shipments to China, sending their after-hours stock prices lower. Trade tensions escalated further as the US announced plans to raise tariffs on Chinese goods to 245%.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, fell 389.67 points to close at 19,468. Turnover totaled NT$285 billion (US$8.8 billion), per CNA and CTEE.
Investor sentiment remained fragile amid uncertainty over former US President Donald Trump’s stance on semiconductor tariffs. Funds continued to exit heavyweight electronics stocks.
TSMC dropped 2.51% to close at NT$855 (US$26). Foxconn also lost 2.51%, ending at NT$136, while MediaTek declined 1.44% to NT$1,365.
The AI sector took another hit after the US unexpectedly added Nvidia’s downgraded H20 chips designed for the Chinese market to its list of controlled exports. The move sparked a sell-off in AI-related shares.
Wistron fell below the NT$100 mark, closing 2.73% lower at NT$99.7. Quanta Computer edged down 0.44% to NT$227.
Robot-related stocks also slumped across the board. Hiwin Technologies, TBI Motion Technology, and Apex Dynamics each lost over 5%, while Gallant Precision Machining, Solomon Technology, and KYE Systems dropped close to 3%.
On a more positive note, information service providers gained traction following President Lai Ching-te’s (賴清德) remarks at the Taiwan Cybersecurity Summit on Tuesday, where he pledged to build a national cybersecurity team. The statement sparked a rally in cybersecurity-related stocks.
Key players, including K Way Information, Apex International Financial Engineering, and Azion Technologies, hit the daily limit-up. Mercuries Data Systems and Fortune Information Systems rose more than 6%.
Defense-related stocks also bucked the market trend, with drone suppliers in focus. Aero Win, Chenfull Precision, Magnate Technology, and Brinno all surged to their daily limit.
Looking ahead, Cathay Securities Investment Consulting manager Tsai Ming-han (蔡明翰) said that investors are closely monitoring TSMC’s investor conference on Thursday. A cautious outlook from the chipmaker could signal softer demand for consumer electronics, potentially weighing further on Taiwan’s stock market.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
