tsmc faces headwinds: what's behind the stock dip?
Taipei, Monday, 30 June 2025.
tsmc shares slipped by 1.44% amidst a broad downturn in taiwan’s electronics and financial sectors. a late-day sell-off involving nearly 10,000 shares pushed the stock to close at 22,256.02 points. this decline interrupts a streak of four consecutive gains, signaling potential instability. despite the overall negative trend, foreign investors are showing interest. they focused on acquiring shares of acer and chang hwa bank, suggesting a nuanced perspective on specific sectors within the taiwanese market.
late trading pressure
the taiwan stock market experienced a downturn on monday, with the taiex closing down 324.06 points at 22,256.02 [7]. tsmc faced significant selling pressure during the final moments of trading [2][7]. specifically, a massive surge of 10,863 shares were sold off near the close, causing a nt$20 drop in tsmc’s stock price to nt$1,060 [7]. this late-session activity alone dragged the broader market down by approximately 161 points, highlighting tsmc’s considerable influence on the overall index [2][7].
analyst perspectives
analyst wang zhao-li pointed to substantial foreign net short positions in taiwan futures, exceeding 50,000 contracts, as a factor [2]. wang noted that alongside tsmc, other heavyweight stocks like hon hai and mediatek also experienced similar last-minute sell-offs [2]. these actions suggest a coordinated effort to depress the index [2]. the analyst also highlighted key factors to watch including the new taiwan dollar’s exchange rate, second-quarter gross margins, foreign exchange losses, and potential semiconductor tariffs [2].
broader market context
the electronics sector showed a 0.4% decline, while the financial sector fell by 1.58% [3]. the over-the-counter (otc) market, representing smaller companies, also decreased by 0.25% [3]. the taiwan stock market had opened lower, dropping by over 100 points early in the day, with tsmc initially down by nt$5 to nt$1,075 [3][5]. this was partly influenced by president trump’s statement regarding the likely end of tariff moratoriums on july 9 [3].
foreign investor activity
foreign investors ended a four-day buying spree, with net sales of nt$31.22 billion on monday [5][7]. despite this, analysts suggest that a weakening us dollar could lead to continued inflows of foreign capital into taiwan [7]. they maintain an optimistic outlook on the market, viewing any concerns related to tariffs as already priced in [7]. furthermore, the strength of us technology stocks, particularly nvidia, is expected to support taiwan’s electronics sector and tsmc’s equipment suppliers [7].