TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Monday as investors reacted to reports of US strikes on Iranian nuclear facilities, raising fears of escalating tensions in the Middle East.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, dropped 313.72 points to end at 21,732.02. Turnover totaled NT$308 billion (US$10 billion), per CNA and CTEE.
TSMC fell 3.32% to NT$1,020, dragging the broader index down by 282 points. Foxconn inched up 0.32% to NT$156, while MediaTek rose 0.4% to NT$1,255.
Despite TSMC’s retreat, several semiconductor equipment-related stocks gained. Gallant Precision Machining and Gallant Micro Machining both hit the daily price limit.
Cleanroom engineering firm L&K Engineering also reached a new high amid active trading, supported by reports of an order backlog valued at NT$200 billion. Cleanroom environments are critical in semiconductor fabrication, where highly controlled air and filtration systems prevent contamination of sensitive components. Due to technical complexity and stringent quality requirements, cleanroom engineering is considered a high-barrier segment within the supply chain.
Investor focus was also strong on high-end substrate materials used in chip packaging. Unimicron and Wus Printed Circuit, both involved in manufacturing Ajinomoto Build-Up Film (ABF) substrates, closed at the daily limit. ABF, a resin developed by Japan’s Ajinomoto, is essential for connecting semiconductor chips to printed circuit boards in advanced packaging.
Meanwhile, shipping and logistics stocks came under pressure after Iran’s parliament approved a proposal to block the Strait of Hormuz—a crucial chokepoint through which roughly 20% of global oil shipments pass. Container shipping giants Evergreen Marine, Yang Ming Marine Transport, and Wan Hai Lines all ended lower, as did other transport-related stocks.
Taishin Securities Investment Advisory Vice President Huang Wen-ching (黃文清) said the market may enter a short consolidation phase following recent gains. The duration of this period, he added, will hinge on whether Iran’s national security council proceeds with closing the strait.
Analyst Chiang Kuo-chung (江國中) noted that while geopolitical crises often trigger short-term losses, markets historically recover. He pointed to rebounds following conflicts in Iraq, Israel, Palestine, and Pakistan, when Taiwan and US stock markets later gained between 8% and 20%.
Chiang said such volatility can present buying opportunities in sectors like artificial intelligence, robotics, and co-packaged optics—emerging technologies expected to drive future growth.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
