TAIPEI (Taiwan News) — Taiwan’s benchmark stock index opened lower Wednesday and extended losses as weakness in US technology shares overnight weighed on sentiment.
The Taiwan Capitalization Weighted Stock Index (TAIEX) briefly fell below the 46,000-point mark before bargain hunting provided limited support. It closed down 1,057.05 points at 46,043.60, according to CNA and Taiwan Index Plus.
Turnover totaled NT$1.45 trillion (US$45.6 billion). The combined market capitalization of listed companies stood at NT$150 trillion, according to the Taiwan Stock Exchange.
Large index-weighted stocks, which have the greatest influence on TAIEX movement, faced significant pressure. TSMC fell 4.02% to NT$2,390.
MediaTek declined 5.51% to NT$4,285 after outperforming the broader market in the previous session. Delta Electronics fell 3.85% to NT$2,000, Foxconn lost 1.35% to NT$256, and ASE slipped 1.36% to NT$653.
In contrast, UMC added to recent gains after touching a 37-year high a day earlier. Investor interest was supported by the chipmaker’s potential cooperation with Intel, improving demand for mature-node chips, and possible price increases, according to CTEE.
Quantum computing-related stocks also drew attention after US President Donald Trump signed executive orders supporting the sector and setting a goal of developing commercial-grade quantum computers by 2028. Kinpo Electronics rose by its daily limit, while Compal Electronics gained 3.69%.
Memory stocks were mixed, with some shares under selling pressure ahead of US memory maker Micron Technology’s earnings release. Winbond Electronics fell 3.07% and Nanya Technology declined 2.42%.
Some names bucked the trend, however, with Phison Electronics and Team Group ending higher. PSMC rose 9.03%, making it one of the sector’s standout performers.
Power semiconductor shares, which had recently shown strong performance, experienced increased volatility. Sdi, Jih Lin Technology, and Hy Electronic rose by their daily limits, while Jentech Precision Industrial, Eris Technology, and Advanced Power Electronics each fell more than 5%.
Episil-Precision and Episil Technologies reversed course after two consecutive limit-up sessions, falling by their daily limits. The moves suggest short-term funds were rotating out of stocks at higher price levels.
Panel makers continued to attract investor interest on expectations tied to semiconductor supply chain transformation and asset utilization. Innolux, AUO, and HannStar Display gained, ranking first, second, and sixth in trading volume on the market.
Passive component makers also advanced. Yageo rose more than 4%, Hua Jung Components and Ever Ohms Technology rose by their daily limits, and Kaimei Electronic, Ta-I Technology, Prosperity Dielectrics, and Taiwan Chinsan Electronic Industrial each gained over 5%.
Funds shifted toward defensive traditional industries and raw material stocks. Formosa Plastics and Formosa Chemicals & Fiber both rose by their daily limits.
Senior analyst Tsai Ming-han (蔡明翰) said the market is digesting profit-taking in semiconductor stocks and that the pullback reflects a technical correction rather than a reversal in the broader trend. He said early selling pressure was partly influenced by a retreat in Micron shares overnight after recent gains, noting that such volatility around earnings announcements is common and does not indicate a change in fundamentals.
President Futures said reports that South Korean memory chip maker SK Hynix is adjusting how it allocates production capacity, along with investors reducing risk in AI-related semiconductor stocks, have added to selling pressure in US technology and memory shares. Many investors are crowded into the same trades and are using high levels of leverage, which has increased short-term profit-taking and put pressure on both futures and spot markets, according to CTEE.
President Futures said investors are now watching Micron’s earnings results and Nvidia’s annual shareholder meeting for signs that could help stabilize sentiment. In Taiwan, market attention is also turning to upcoming investor conferences hosted by TSMC and Nanya Technology in July.
Tsai added that the prevailing “buy-the-dip” mentality has provided support for the market. However, it could also lead to heavier selling pressure if a deeper correction occurs in the future.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
