TAIPEI (Taiwan News) — Taiwan’s stock market fell Monday as US President Donald Trump announced a 25% tariff on all steel and aluminum imports starting Feb. 10, fueling fears that Taiwan’s semiconductor industry could be the next target.
The Taiwan Stock Exchange Capitalization Weighted Stock Index or TAIEX closed down 226.13 points at 23,252.14, compared to a gain of 161.67 Friday. Turnover totaled NT$325.3 billion (US$9.9 billion), per CNA.
Foreign investors ended a three-day buying streak, selling a net NT$18.8 billion. This dragged the TAIEX lower after four consecutive sessions of gains, according to CTEE.
TSMC fell NT$20 (61 cents) to close at NT$1,105, holding above the NT$1,100 support level but erasing NT$518.6 billion in market value. The company will hold its first US board meeting on Wednesday, where it is expected to seek tariff exemptions through expanded US investments, technology partnerships, or limited technology transfers to Intel.
Other major tech stocks, including MediaTek, Foxconn, and Quanta Computer, also declined, adding pressure to the market. Raw material stocks surged on optimism over tariff policies and post-disaster reconstruction demand, but the gains were insufficient to offset the broader downturn.
Analysts say TSMC’s board meeting will be a key event shaping Taiwan’s stock market outlook. If the company expands US investments, the impact would be limited, as a potential fourth plant would likely begin operations after 2030.
However, if reports of technology partnerships or technology transfers to Intel prove true, it could weigh heavily on TSMC and push the broader market lower.
Liu Yu-heng (劉宇衡), manager of Taishin High Dividend Yield Balanced Fund A, identified three factors to watch. First is the impact of Chinese AI startup DeepSeek on future orders for Nvidia’s AI supply chain. Second is the evolving landscape of US foreign tariffs, and third is whether the US will impose heavy taxes on semiconductors produced overseas.
Huang Kuo-wei (黃國偉) of Mega International pointed out that Japan has already committed to investing US$1 trillion in the US, and Taiwan might follow suit. However, TSMC, as a market price setter, can pass on costs.
Huang stressed that the critical factor will be TSMC’s upcoming board meeting on Wednesday, where its commitments to the US will be closely watched. Given the short-term uncertainties, Taiwan’s stock market is expected to remain range-bound and volatile, with the six-month moving average of 22,689 points seen as a key support level.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
