TAIPEI (Taiwan News) — Taiwan stocks opened higher Wednesday as investor sentiment stabilized following easing concerns for now over US President Donald Trump's tariffs and the impact of Chinese AI firm DeepSeek’s rise.
Foreign investors injected NT$25.4 billion (US$773 million) into the market, fueling gains in stocks and currency. Institutional investors remain optimistic about the return of global capital, which could strengthen Taiwan’s stock and currency markets, per CTEE.
TAIEX rebounded 367.62 points to close at 23,161.58, recovering from Monday’s sharp 830.7-point drop. Total turnover reached NT$349.34 billion, according to CNA.
TSMC opened higher and remained strong throughout the session, closing up NT$15 (46 cents) at NT$1,110 and contributing 123 points to the TAIEX. Institutional investors noted Trump’s temporary suspension of tariffs on Mexico and Canada helped ease market anxiety, though investors remain cautious about its long-term implications for Taiwan’s stock performance.
Other major tech stocks also saw gains. Foxconn climbed NT$6 to close at NT$171, while MediaTek gained NT$35 to finish at NT$1,525.
The passive components and robotics sectors outperformed the broader market.
Passive components companies Yageo surged 6.55% to close at NT$569, while Honey Hope Honesty, Hua Jung Components, and Acme Electronics hit their daily limits, ending at NT$32.1, NT$16.7, and NT$26.8, respectively. Several robotics concept companies reached their daily limit, including Apex Dynamics, Hiwin Mikrosystem, and Aurotek.
Passive components are basic electronic parts that do not generate electricity on their own but help control and manage electrical signals in a circuit. They work together with active components like chips to ensure proper device operation, per Sinotrade.
Unlike active components, which can amplify or produce energy, passive components only store, consume, or release energy. Resistors, capacitors, and inductors are the most frequently used examples.
Taishin Securities Investment Advisory Deputy General Manager Huang Wen-ching (黃文清) remains optimistic about AI ASIC, specialty chemicals for semiconductors, and the apparel and footwear industries in the medium to long term. However, he advised investors to monitor potential risks, including stricter US chip export controls, possible semiconductor tariffs, and DeepSeek’s market impact.
*This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.*
