TAIPEI (Taiwan News) — Taiwan’s stock market saw wide intraday movements Friday, influenced by overnight declines in US technology shares and the approaching Lunar New Year holiday.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell as much as 636.99 points during the session before trimming losses to close down 18.35 points at 31,782.92. Turnover totaled NT$676.8 billion (US$21.4 billion), according to CNA and CTEE.
For the week, the index declined 280 points, ending a five-week advance. With three trading days remaining before the market closes for the holiday, market sentiment turned cautious, according to Sinotrade.
TSMC reversed early losses to close at a session high of NT$1,780, up 0.85%, helping stabilize the broader market. Chip packaging and testing firm Advanced Semiconductor Engineering also provided support, gaining 7.22% to NT$304.5.
Delta Electronics rose 0.87% to NT$1,160 after trading lower earlier in the session. Foxconn edged down 0.23% to NT$215, and MediaTek declined 3.11% to NT$1,715 after CEO Rick Tsai (蔡力行) said smartphone-related revenue is expected to weaken this quarter, according to UDN.
Mature-process chipmakers offered additional support. Vanguard International Semiconductor rose 5.73%, while UMC and PSMC advanced 0.65% and 1.11%, respectively.
PSMC recorded the session’s highest trading volume, with 338,000 lots, or 338 million shares, changing hands. The company operates both memory manufacturing and mature-node foundry businesses, according to Storm Media.
Mature-node chips, generally produced on 28-nanometer processes and above, remain essential for functions such as power management and connectivity. Even smartphones equipped with advanced 3-nanometer processors rely on dozens of these older chips, according to Gugu Fund.
Memory stocks, which had recently benefited from supply tightness and higher prices, faced selling pressure. Nanya Technology fell 4%, while Winbond declined 4.59%.
Apacer Technology, in contrast, hit its daily limit-up after reporting January revenue of NT$2.1 billion, up 233% year-on-year. The memory module maker reported steady shipments in more profitable areas such as industrial control and embedded systems.
Analysts said investor interest in the sector shifted toward companies with specialized applications as major memory stocks weakened. The memory market’s supply-demand imbalance remains, but module makers focusing on specialized applications may continue to see opportunities.
In the fiberglass sector, Taiwan Glass dropped 9.85%, while Baotek Industrial Materials reached its daily limit-down. Fiberglass is a key material for printed circuit boards and copper-clad laminates used in electronics manufacturing.
Textile and fiber stocks moved higher against the broader market, led by Acelon Chemicals and Fiber, which reached the daily limit-up. Market participants cited a preference for safer, more stable stocks and relatively low valuations.
Cathay Securities Investment Consulting manager Tsai Ming-han (蔡明翰) said pressure on Taiwan equities Friday mainly reflected developments in US markets. He noted market concerns following Alphabet’s announcement that it plans to raise capital expenditures to NT$5.84 trillion this year, up from analysts’ earlier forecast of NT$3.78 trillion.
Investors have recently questioned whether the funds that major tech companies are investing in artificial intelligence will generate returns, according to Yahoo Finance. However, Tsai said the spending plans signal ongoing demand, and Taiwan’s semiconductor and AI supply chains are expected to benefit, supporting a positive medium-term outlook.
Analysts said market volatility may persist ahead of the Lunar New Year holiday as investor caution increases. Capital continues to focus on electronics stocks, particularly memory-related names, with some rotation into electronic materials, according to CTEE.
They expect trading fluctuations to ease gradually next week. Near-term attention will focus on whether US tech shares stabilize, the extent of consolidation in memory stocks, and institutional positioning before the 11-day market close beginning Feb. 11.
Market direction is expected to become clearer after the holiday. Attention will turn to major technology events including Mobile World Congress and Nvidia’s GTC conference, with developments in artificial intelligence expected to continue influencing market sentiment.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
