TAIPEI (Taiwan News) — Taiwan's stock market closed lower Monday, pressured by a stronger Taiwan dollar and increased futures selling by foreign investors, while a late-session selloff in TSMC further weighed on performance.
While a stronger Taiwan dollar lowers import costs, its recent rise puts pressure on Taiwan’s export-driven economy by making goods more expensive abroad, hurting competitiveness and investor confidence. Following Central Bank intervention after the stock market close, the currency closed at NT$29.902 against the US dollar Monday, marking its biggest single-day depreciation in 24 years, according to CNA and CTEE.
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell 324.06 points to close at 22,256.02. Turnover totaled NT$354 billion (US$12 billion), according to CNA and CTEE.
TSMC declined 1.85% to NT$1,060 after 10,863 lots, or 10.863 million shares, were sold in a single order late in the session. MediaTek fell 2.72% to NT$1,250 and Foxconn lost 2.42% to NT$161.
Gold Circuit Electronics gained 6.88% to NT$295 amid expectations that demand for Amazon’s Trainium 2 will support growth. The company holds an estimated 25–30% market share in cloud service provider application-specific integrated circuits (ASICs) printed circuit board applications.
Unlike general-purpose CPUs and GPUs, ASICs are designed for particular tasks. Major cloud service providers like Google, Amazon, Microsoft, and Meta are developing their own ASICs, partnering with integrated circuit design companies such as MediaTek to reduce their reliance on a single provider, particularly Nvidia.
Interest in AI glasses increased, with companies such as Xiaomi, Meta, and Apple actively developing products in the category. C-Media Electronics and Megaforce each rose more than 5%.
Foreign institutional investors continued to show interest in AI server and ASIC themes, supporting several related stocks. Glotech Industrial and Key Ware Electronics closed at their respective daily limits, ending at NT$28.1 and NT$11.15, respectively.
Gaming-related stocks also attracted attention ahead of the summer holiday season. InterServ International closed at the daily limit of NT$25.6, while MacroWell OMG Digital Entertainment and Chinese Gamer rose 3.92% and 3.34%, respectively.
Analyst Chiang Kuo-chung (江國中) advised caution, recommending that investors avoid chasing stocks that have seen significant short-term increases. Chiang suggested focusing on lower-base or large-cap growth stocks as a more stable strategy in the current market environment.
Chiang projected a 30% year-on-year increase in earnings per share for the electronics sector this year. He maintained a positive view on TSMC and the broader semiconductor supply chain, as well as emerging technologies such as co-packaged optics and robotics, which he said could provide long-term support for market stability.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
