Philadelphia Semiconductor Index Falls 6%, TSMC ADR Down Nearly 7%, Analysts Note Correction Pressure on Taiwan Stocks

(CNA, Reporter He Xiuling, Taipei, July 2) Tech stocks weakened, and major U.S. stock indices closed lower on July 1. Intel fell 9.03%, TSMC ADR dropped 6.9%, and the Taiwan Stock Futures overnight session declined by 867 points. Analysts pointed out that the Taiwan stock market may face technical correction pressure; however, with foreign investors turning to buying, long-term AI themes, and expectations for TSMC's earnings call on the 16th providing support, it is worth observing whether the index can maintain its mid-term bullish trend.

Additionally, the market is focusing on the upcoming U.S. June non-farm payrolls report to gauge future interest rate policy direction.

U.S. President Trump stated that Taiwan is doubling the scale of the wafer fabrication plant under construction in Arizona, which will help increase U.S. chip market share to 50% before the end of his term.

Observing the performance of U.S. stocks on July 1, the weakening of tech stocks dragged down the broader market, with major U.S. stock indices closing lower. However, Meta Platforms, the parent company of Facebook, saw its stock price surge, providing some support to the market.

The Dow Jones Industrial Average fell 13.96 points, or 0.03%, to close at 52,305.24. The S&P 500 index dropped 16.13 points, or 0.22%, to close at 7,483.23. The Nasdaq Composite slid 173.69 points, or 0.66%, to close at 26,040.03. The Philadelphia Semiconductor Index plunged 893.68 points, or 6.27%, to close at 13,353.28.

TSMC's stock price rose NT$95 on July 1, closing at NT$2,505, regaining the NT$2,500 mark. This led the Taiwan stock market to close up 893.08 points at 47,018.99, returning above the 47,000-point level, with a transaction value of approximately NT$1.3039 trillion.

Observing the trading positions of the three major institutional investors, their net buying totaled NT$52.935 billion. Among them, foreign and mainland Chinese investors bought a net NT$32.376 billion, ending six consecutive trading days of net selling. Investment trusts bought a net NT$14.621 billion, and proprietary traders bought a net NT$5.938 billion.

The top three stocks bought by foreign investors were actively managed Yuanta Taiwan Stock Growth ETF (139,081 units), actively managed Yuanta UP 50 (137,352 units), and UMC (65,873 units). Actively managed Cathay Dynamic High Dividend, actively managed Yuanta Global Innovation, and actively managed Yuanta AI New Economy ranked 7th to 9th respectively. Among the top 10 stocks bought by foreign investors, five were actively managed ETFs. (Editor: Yang Lanxuan) 1150702

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