TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Thursday as rising geopolitical tensions in the Middle East weighed on investor sentiment, with losses at major technology companies contributing to the overall decline.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, dropped 353.23 points to close at 22,003.5. Turnover totaled NT$330 billion (US$11 billion), according to CNA and CTEE.
TSMC was a significant contributor to the market's decline, falling 1.9% to close at NT$1,035. MediaTek also declined by 1.2% to NT$1,265, while Foxconn dropped NT$2 to finish at NT$154.
In contrast, some Apple supply chain stocks gained, led by bearing manufacturer Shin Zu Shing, which hit the daily limit up for the second straight session. Related suppliers Jarllytec and Fositek also closed higher.
Bearings are key parts in high-performance applications, including automotive and medical devices, where they enable precise motion control for safety and accuracy.
Analyst Tsai Ching-lung (蔡慶龍) said that among hinge component makers, Shin Zu Shing is expected to be a key supplier for Apple’s upcoming foldable phone. Industry sources estimate that the average selling price of foldable hinges for Apple could be three to five times higher than that of traditional laptop hinges, underscoring the potential value of the new product line, Tsai added.
Meanwhile, casing supplier Chenbro Micom extended its winning streak for an eighth session, rising 2.05% by the close.
The memory chip sector displayed mixed results amid ongoing reports of price increases in the dynamic random access memory market. Nanya Technology rose 2.2% to close at NT$59.1, with a trading volume of 234,000 shares, the highest among listed stocks.
Winbond Electronics reversed early gains to finish down 0.25% at NT$15.9, with 151,000 shares traded. DRAM chips are essential components for temporary data storage in personal computers and mobile devices.
Concerns over the escalating conflict in the Middle East and speculation about possible US involvement have contributed to market uncertainty. Looking ahead, market watchers anticipate possible interest rate reductions. Some expect up to two rate cuts by the end of the year, which could alleviate market pressures and improve investor confidence.
Institutional investors pointed to Nvidia’s upcoming launch of new AI chips — GB200 and GB300 — in the second half of the year as a potential driver for Taiwan’s technology sector, particularly companies linked to the artificial intelligence supply chain.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
