The stock market in Taipei closed below 17,200 points on Monday, with tech stocks related to artificial intelligence facing selling pressure due to ongoing concerns about the U.S. ban on chip sales to China. Reports suggesting that Taiwan Semiconductor Manufacturing Co. (TMSC) might lower the cost of certain advanced chips next year contributed to the semiconductor sector’s decline, leading to a broader market downturn.
The Taiex, Taiwan Stock Exchange’s weighted index, fluctuated between 17,133.76 and 17,351.93 before ending the day at 17,137.42, down 150.00 points or 0.87 percent. The total turnover was NT\(273.78 billion (US\)8.67 billion).
During the morning session, the market initially rose by 3.81 points before experiencing selling pressure, which pushed the Taiex up by 64.51 points. In the afternoon, particularly in the first electronics sector, the market saw a decrease below the 10-day moving average of 17,209 points by the session’s close.
The decline in AI-related shares, particularly in the computer and peripheral sub-index, impacted the electronics sector, with the software industry also feeling the pressure as the silicon sub-index dropped by 1.26 percent.
Concord Securities researcher Kerry Huang noted that AI-related stocks were affected by Nvidia Corp.’s statements at an investment event last week, where the company expressed concerns about the U.S. government’s restrictions on selling high-performance AI chips to China. This led to significant selling pressure on companies like Quanta Computer Inc., whose shares fell by 3.44 percent.
Other AI server suppliers, such as Wistron Corp. and its subsidiary Wiwynn Corp., also experienced declines in their share prices. TSMC, a key player in the market, saw its stock price drop by 1.22 percent, contributing to the overall decline in the Taiex.
The market reacted negatively to reports of potential price cuts on chips manufactured by TSMC next year, signaling concerns about increased competition from Taiwanese chipmakers. This news affected other contract chipmakers like United Microelectronics Corp. and Powerchip Semiconductor Manufacturing Corp.
In the biotech sector, shares rose due to expectations of increased demand in China following a rise in respiratory diseases among children. Companies like Panion & BF Biotech Inc. and Nang Kuang Pharmaceutical Co. saw significant daily increases in their stock prices.
Overall, the market faced uncertainties and potential further losses as the Taiex fell below the 10-day moving average. Despite this, international institutional investors remained active, selling a significant amount of shares on the main panel.
