The Taiwan Stock Exchange faced challenges in the semiconductor sector amidst a broader market downturn. On a day marked by declines in global markets following tariff announcements by US President Donald Trump, Taiwan’s stock market mirrored this trend. The Taiwan Stock Exchange Capitalization Weighted Stock Index, known as TAIEX, closed lower, shedding 296.93 points to reach 22,756.25, with a turnover of NT$419.95 billion (US$12.8 billion).

Semiconductor stocks, including industry giants like TSMC, Foxconn, and MediaTek, experienced significant declines. TSMC saw a 1.92% drop, closing at NT$1,020 (US$31), while Foxconn and MediaTek fell by 2.3% and 2.97%, respectively. Other key players in the semiconductor industry, such as Aspeed Technology and Alchip Technologies, also registered losses. Stocks in integrated circuit design and related fields like eMemory Technology, Asmedia Technology, and MediaTek followed suit, ending the day in negative territory.

Conversely, traditional sectors like cement provided some support to the market. Investors diverted funds towards established companies like Uni-President, Hotai Motor, and Evergreen Marine, as well as Foxconn’s Pan-International, which showed resilience amid the market turmoil. Companies with strong earnings reports, including Tripod Technology, Simplo Technology, and Lite-On Technology, managed to buck the downward trend.

The market’s top performer was the cement industry, buoyed by expectations of reconstruction opportunities post a potential resolution to the Russia-Ukraine conflict, posting a 1.66% increase. Following closely were the food and financial sectors, which saw gains of 1.15% and 0.66%, respectively.

Chu Hsiang-sheng, Director at Hua Nan Securities Investment Management, highlighted the impact of Trump’s tariff policies on the economy at large. In the semiconductor realm, concerns were raised about TSMC’s Chip-on-Wafer-on-Substrate (CoWoS) packaging process facing order cutbacks, disrupting its supply chain and dampening market performance.

As investors navigate these turbulent times, it is crucial for them to conduct thorough research and analysis before making investment decisions. The shifting dynamics between tech and traditional industries in Taiwan’s stock market underscore the need for vigilance and strategic planning in the face of evolving global economic landscapes.