TAIPEI (Taiwan News) — Taiwan’s stock market closed lower on Tuesday as investors remained cautious ahead of upcoming US tariff decisions and possible taxation measures targeting the semiconductor sector.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) fell 211.46 points to close at 23,201.52. Turnover totaled NT$371 billion (US$12.5 billion), per CNA and CTEE.
TSMC dropped 0.87% to NT$1,135. MediaTek slipped 2.86% to NT$1,360, while Foxconn fell 2.56% to NT$171.5.
Defense-related shares outperformed following the Ministry of National Defense’s announcement of a new military-commercial drone procurement program, the largest of its kind to date. The news triggered gains in drone-related companies.
Thunder Tiger hit the daily price limit, leading the sector. Coretronic, Brinno, Paropro, and Anji Technology also rose, with Coretronic and Anji closing near their daily limits.
Electrical engineering firms gained on continued orders under Taiwan Power Co.’s grid resilience initiative. Shihlin Electric closed flat, while Chung-Hsin Electric, Allis Electric, and Fortune Electric posted gains after strong first-half revenue reports.
Launched in September 2022, the NT$564.5 billion grid resilience initiative is a 10-year plan to decentralize and upgrade Taiwan’s aging power grid. The program aims to reduce the risk of blackouts by modernizing transmission and distribution systems and expanding investment in power lines, cables, transformers, switches, distribution panels, and substations.
Taishin Securities Investment Advisory Vice President Huang Wen-ching (黃文清) said that, in addition to tariff-related uncertainty, the upcoming release of the US Section 232 investigation into semiconductors could prove pivotal. The report is expected within two weeks.
Huang added that earnings reports from major US tech companies—including Meta, Microsoft, and Apple—are due this week. If results are strong, particularly following Alphabet’s better-than-expected Q2 earnings, AI-related stocks in Taiwan may draw renewed investor interest.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
