taiwan stock market braces for potential correction amid tsmc adr dip
Taipei, Monday, 3 March 2025.
analysts foresee a possible correction in the taiwan stock market. nvidia and tsmc adrs experienced declines during the 228 holiday, potentially impacting market stability. tsmc adrs dipped by 7.24%. the taiwan stock market may test its 6-month moving average. tsmc could face additional downward pressure. trump’s tariff policies are a looming concern. could tsmc shares drop to 1,000 ntd? experts weigh in on strategic buying opportunities.
market overview
The Taiwan stock market is facing potential downward pressure [1]. This concern arises from the decline in Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) American depositary receipts (ADRs) during the 228 holiday [1]. The market may test its six-month moving average, currently around 22,845 points [1]. Analysts suggest that TSMC could experience further declines [1]. Adding to the uncertainty, the potential impact of former U.S. President Donald Trump’s tariff policies looms over the market [1][4].
tsmc’s stock performance and geopolitical factors
TSMC’s stock performance is significantly affected by geopolitical factors and potential policy changes [4]. Concerns about Trump’s policies, including potential tariffs and pressure on TSMC to expand its U.S. operations, are weighing on the stock [4][5]. These factors contributed to TSMC’s ADRs falling 7.2% during the 228 holiday [1][4]. Last week, TSMC’s stock closed at 1,040 NTD, with a 1.89% drop and a high volume of sell orders [4].
expert perspectives on tsmc’s future
Despite short-term uncertainties, analysts remain optimistic about TSMC’s long-term prospects [4]. Knowledge Power Technology CEO, Chu Chien-chung, believes that TSMC’s recent stock weakness stems from policy uncertainties [4]. He emphasizes that TSMC’s underlying business performance remains strong [4]. Some Wall Street analysts predict TSMC will surpass ASE Technology Holding as the world’s largest outsourced semiconductor assembly and testing supplier this year [4].
trump’s tariff threats and tsmc’s response
Trump’s threats to impose high tariffs on Taiwanese chips are adding pressure on TSMC [5]. These threats are seen as a way to push TSMC to expand its investments in the United States [5]. TSMC is reportedly considering acquiring and operating Intel’s U.S. semiconductor plants in response to requests from Trump administration officials [5]. These potential expansions in the U.S., while addressing political pressures, could lead to increased costs and risks of technology transfer [5].
market reaction and potential support levels
The Taiwan stock market reacted sharply to these developments, with a significant drop on Monday [3]. The market opened lower, falling 300 points to 22,734, and further declined to 22,615 [3]. Analysts suggest that the key support level to watch is 22,600 points [3]. The estimated trading volume is expected to be high, ranging from 450 billion to 500 billion NTD [3]. The decline in TSMC’s ADRs suggests a potential further correction in the local market [3].
taipei international machine tool show
The 30th Taipei International Machine Tool Show (TIMTOS) commenced today, featuring over 1,000 exhibitors and 6,100 booths [1][2][3]. The event has attracted over 4,000 buyers from more than 90 countries [2][3]. The American Institute in Taiwan (AIT) brought U.S. manufacturers to the show, and UK robotics companies also showed interest [1][3]. The event highlights advancements in AI and smart manufacturing [3].