Taipei: Shares in Taiwan closed lower Tuesday, led by the electronics sector amid worries over AI development after the heads of three U.S. AI giants-Anthropic, OpenAI, and xAI-warned of risks and called for a slowdown in development, dealers said. After falling 0.70 percent Monday, the Taiex, the Taiwan Stock Exchange's benchmark index, ended down 351.03 points, or 0.77 percent, at 45,511.49 Tuesday after moving between 45,491.97 and 46,009.85. Turnover totaled NT$603.45 billion (US$18.99 billion).
According to Focus Taiwan, the local main board had already reflected the warnings from the three AI executives yesterday, and selling continued today after AI-related stocks in the United States plunged overnight. This was particularly evident with the Philadelphia Semiconductor Index experiencing a 5.86 percent tumble. Despite this, Cathay Futures Consultant analyst Tsai Ming-han noted that the selling pressure was not overwhelming, as AI investment fundamentals remained unchanged. TSMC, a major AI stock, showed resilience by rising 0.21 percent to close at NT$2,385.00, preventing a further decline in the Taiex.
Among other semiconductor stocks, IC packaging and testing firm ASE Technology Holding Co. saw a 3.27 percent decrease to NT$592.00, while smartphone IC designer MediaTek Inc. fell 2.85 percent to NT$4,430.00. Memory chip supplier Nanya Technology Corp. ended down 1.59 percent at NT$465.50. In contrast, outside the semiconductor industry, iPhone assembler and AI server maker Hon Hai Precision Industry Co. closed down 0.80 percent at NT$246.50, while Quanta Computer Inc., another AI supplier, slightly increased by 0.15 percent to NT$333.00.
Yageo Corp., the world's third-largest multilayer ceramic capacitor supplier, closed down 1.47 percent at NT$537.00. Meanwhile, Delta Electronics Inc., a power management solutions provider, rose 3.27 percent to end at NT$1,670.00. Tsai highlighted that the financial sector reversed Monday's 1.94 percent gain, falling 1.10 percent Tuesday and adding pressure to the Taiex. Fubon Financial Holding Co. fell 1.95 percent to NT$151.00, and Cathay Financial Holding Co. shed 2.22 percent to NT$110.00. E. Sun Financial Holding Co., however, closed up 2.35 percent at NT$69.70.
In the old economy stocks, China Airlines lost 1.49 percent to close at NT$19.90, and EVA Airways ended down 2.02 percent at NT$41.20. Reflecting the decline in shares of its subsidiary Nanya Technology, Nan Ya Plastics Corp. shed 5.34 percent to NT$221.50, while affiliate Formosa Plastics Corp. ended down 1.43 percent at NT$62.00. Tsai concluded that the impact of AI concerns has largely been priced in, and market attention will now turn to the U.S. Federal Reserve.
The Federal Reserve is scheduled to begin a two-day meeting later Tuesday, with the Taiex expected to remain in consolidation mode awaiting comments from Fed Chairman Kevin Warsh. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$62.70 billion worth of shares on the main board Tuesday.