by Martin Haffner Associate Editor
TAIPEI (Taiwan News) — Taiwan’s stock market fell Friday, driven by a drop in TSMC shares after US President Donald Trump accused Taiwan of taking the semiconductor industry from the US.
The Taiwan Stock Exchange Capitalization Weighted Stock Index or TAIEX closed down 246.8 points at 23,152.61. Turnover totaled NT$398.3 billion (US$12.2 billion), per CTEE and CNA.
Cable and steel stocks rose by 5.29% and 3.3%, respectively. Semiconductor stocks dropped by 2.15% and the financial sector edged down by 0.26%.
President Lai Ching-te (賴清德) said at a national security meeting Friday the goal was to increase Taiwan’s defense budget to 3% of GDP. This announcement drove up military-related stocks, with companies like Brinno Incorporated hitting the daily limit and Thunder Tiger rising over 9%.
In the semiconductor sector, a Texas court ruled in favor of Force Mos Technology in its patent infringement case against Asus, ordering Asus to pay US$10.5 million in damages. Following the decision, Force Mos’ stock hit the daily price limit, while Asus saw a decline.
Leading power management integrated circuit company Silergy rose over 8% after Morgan Stanley raised its target price to NT$500 (US$15), closing at NT$422.5. Foreign research report target prices are based on company earnings projections and are typically met 50% of the time.
TSMC closed at NT$1,060, dropping NT$30 (92 cents). Foxconn, MediaTek, and Delta Electronics saw declines, while ASE Technology Holding rose by 2.64%.
In the AI server segment, Quanta Computer closed flat at NT$260. Wistron and Wiwynn dropped 0.45% and 3.54%, respectively.
Meanwhile, optimism around a potential ceasefire in the Russia-Ukraine war has spurred post-war reconstruction stocks. Steel companies like Sinkang Industries and Yc Inox hit their daily price limits.
Taishin 2000 High Technology Equity Fund manager Shen Chien-hung (沈建宏) pointed out that US-China trade tensions and the launch of China’s DeepSeek AI model in January have added uncertainty to chip stocks. Shen predicts that this volatility will continue in Taiwan’s stock market.
Sectors that are highly valued will face pressure to adjust, while those with lower starting points and those benefiting from AI trends are expected to perform better.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
