TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Friday as investors adopted a cautious stance ahead of upcoming US tariff deadlines and an anticipated announcement on US tax policy.
The Taiwan Capitalization Weighted Stock Index (TAIEX) fell 165 points to close at 22,547.5. Turnover totaled NT$322 billion (US$11 billion), according to CNA and CTEE.
TSMC fell 0.46% to close at NT$1,085, while Foxconn declined 1.83% to NT$161. MediaTek gained 1.57%, ending the day at NT$1,290.
Despite the overall market retreat, certain sectors showed strength. Silicon photonics shares continued their upward trend, with GCS Holdings hitting the daily trading limit at NT$143.
This technology integrates optical and electronic components on a single chip, providing advantages in speed, power efficiency, and low latency for data transmission.
Printed circuit board maker Plotech advanced 4%. PCBs, often called the “mother of all electronic devices,” are crafted with intricate copper wiring to connect components, forming the foundation of most electronic circuits.
Nan Ya Printed Circuit Board, an Ajinomoto Build-Up Film substrate producer, rose 1.6% following ex-dividend adjustments the previous day. ABF is a resin developed by Japanese firm Ajinomoto, crucial in semiconductor manufacturing and connecting chips to printed circuit boards.
Powerchip Semiconductor Manufacturing Corp. recorded the highest trading volume on the market, with over 200,000 lots, or 200 million shares, exchanged. The stock remained unchanged amid strong investor interest in gallium nitride (GaN) technology.
GaN is an advanced semiconductor material recognized for its durability, rapid switching capabilities, and energy efficiency. It outperforms traditional silicon in compact, high-power applications ranging from consumer electronics to renewable energy systems.
In contrast, steel sector stocks traded mostly lower despite the recent conclusion of a U.S.-Vietnam trade agreement. Concerns persisted regarding a 40% tariff imposed on Chinese-origin products suspected of being rerouted through third countries.
Century Iron and Steel Industrial saw significant selling pressure and fell to its daily limit. Feng Hsin Steel and Yieh Hsing Enterprise also declined by about 2% and over 1%, respectively.
Mega International Vice President Huang Kuo-wei (黃國偉) attributed the market’s decline primarily to investor anticipation of upcoming US tariff announcements. Huang observed that much of the recent positive news appears already reflected in current stock prices., while the overall economic outlook remains weak.
Huang said the market is now experiencing some pressure to stabilize after reaching these elevated valuations. Analysts also pointed out that, although the stronger Taiwan dollar has caused some losses for exporters due to currency changes, the ongoing inflow of foreign investment is generally supporting the stock market.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
