legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

## Taiwan Shares Close Lower as Tech Stocks Face Selling Pressure

**Taipei, Aug. 8 (CNA)** – The stock market in Taiwan experienced a decline in shares on Tuesday, as large-cap tech stocks, particularly in the semiconductor industry, faced selling pressure. This occurred as the Taiwan dollar continued to depreciate against the U.S. dollar. However, amidst the weakness in the electronics sector, some stocks related to artificial intelligence development managed to bounce back, providing support to the broader market.

The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), closed down 0.70 percent at 16,877.07 points. Throughout the day, the index moved between 16,812.59 and 17,043.56. The total turnover reached NT$373.46 billion (US$11.74 billion).

## The Influence of Technical Hurdles and Weaker Taiwan Dollar

“Judging from today’s movement, there were high technical hurdles ahead of 17,000 points around the five-day moving average, although the Taiex briefly breached that level,” observed Moore Securities Investment Consulting Co. analyst Adam Lin. He further explained, “In addition to the technical reasons, investors were motivated by a weaker Taiwan dollar to move their funds out of the liquid electronics sector. TSMC (Taiwan Semiconductor Manufacturing Co.) was one of their major targets.”

## TSMC Faces Selling Pressure Amidst Reports of Non-charging Agreement with Apple

TSMC, the most heavily weighted stock on the local market, experienced a 1.08 percent loss and closed at NT$552.00. This decline contributed to the overall 0.81 percent drop in the electronics sector, with the semiconductor sub-index falling 1.24 percent.

“Selling in TSMC also resulted from a report that the chipmaker will not charge Apple Inc. for defective chips made using its advanced 3 nanometer process ahead of the introduction of the iPhone 15 Pro and the A17 Bionic chip,” shared Adam Lin. “According to the report, Apple will save billions of U.S. dollars but TSMC will shoulder the losses.”

The U.S.-based tech news outlet, The Information, described the agreement with Apple as an unusual step by TSMC. However, in response, TSMC stated that it would not comment on any specific clients. The company emphasized the heightened yield rate of the 3nm process, which is the latest technology introduced in mass production at the end of last year.

## Impact on Other Semiconductor Stocks and AI-Related Stocks

The selling pressure on semiconductor stocks extended to other companies in the sector. MediaTek Inc., a smartphone IC designer, experienced a decline of 2.27 percent, closing at NT$690.00. ASE Technology Holding Co., an IC packaging and testing services provider, fell 2.24 percent to close at NT$109.00. Additionally, United Microelectronics Corp., a smaller contract chipmaker, saw a loss of 1.83 percent, closing at NT$45.55. TSMC’s application-specific integrated circuit design subsidiary, Global Unichip Corp., also faced significant pressure, falling 4.27 percent to end at NT$1,345.00.

Fortunately, certain AI-related stocks managed to recover from earlier losses due to investors’ high hopes surrounding Nvidia Corp. CEO Jensen Huang’s anticipated positive leads about AI development. Huang was scheduled to deliver a speech at SIGGRAPH 2023, a computer graphics and interactive technology expo, later in the day in Taipei.

Among these AI-related stocks, Wistron Corp., an AI server maker, rose 3.20 percent to close at NT$129.00. Wistron’s data center solution subsidiary, Wiwynn Corp., also gained 5.41 percent, ending at NT$1,755.00. Additionally, Compal Electronics Inc., another AI server supplier, noted a 1.45 percent increase, closing at NT$31.40. However, rival Quanta Computer Inc. experienced a decline of 0.83 percent, closing at NT$240.00.

## Other Movements in the Electronics, Green Energy, and Transportation Sectors

Within the electronics sector, iPhone assembler Hon Hai Precision Industry Co., known as Foxconn globally, observed a 0.91 percent increase, closing at NT$110.50. PC brands Asustek Computer Inc. and Acer Inc. also showed gains, with a 1.48 percent and 1.38 percent increase, respectively, closing at NT$376.00 and NT$36.70.

“When investors moved their funds out of the tech sector, they rushed to find other targets. Today, select green energy and transportation stocks benefited from rotational buying to outperform the broader market,” highlighted Adam Lin. “I prefer to say the gains were largely technical in nature.”

In the green energy sector, Tatung Co., a home appliance brand investing in green energy development, gained 3.38 percent, closing at NT$52.00. Century Iron and Steel Industrial Co., involved in offshore wind power development, experienced a 2.61 percent increase, ending at NT$157.00. Furthermore, Fortune Electric Co. rose 2.38 percent, closing at NT$215.00. Investments in the offshore wind power business also boosted Shinfox Energy Co., which gained 1.44 percent and closed at NT$105.50.

The transportation sector noted a 0.92 percent rise, with China Airlines increasing by 1.84 percent, closing at NT$24.90. EVA Airways also saw a 2.14 percent increase, ending at NT$35.80. Meanwhile, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, experienced a 0.94 percent rise, closing at NT$107.50. However, rival Yang Ming Marine Transport Corp. ended unchanged at NT$46.40.

## Financial Sector Performance and Future Outlook

In the financial sector, which experienced a 0.20 percent decline, E. Sun Financial Holding Co. lost 0.58 percent, while Fubon Financial Holding Co. fell 0.46 percent. On the other hand, Cathay Financial Holding Co. managed to gain 1.29 percent.

“Investors should keep a close eye on the Taiwan dollar value as that will be critical to whether TSMC climbs out of the current consolidation mode to vault the Taiex,” emphasized Adam Lin.

According to the TWSE, foreign institutional investors sold a net NT$19.30 billion worth of shares on the main board on Tuesday. The U.S. dollar closed at NT$31.810 against the Taiwan dollar, showing an increase of NT$0.140.

*By Frances Huang*
*Enditem/AW*

## How AI legalese decoder Can Help with the Situation

The AI legalese decoder can be highly beneficial in analyzing and interpreting the legal implications of the current situation in the Taiwan stock market. With the increasing complexity of the semiconductor industry and its relation to artificial intelligence development, the AI legalese decoder can provide valuable insights into the legal considerations and challenges faced by companies such as TSMC and other semiconductor manufacturers.

By leveraging natural language processing and machine learning algorithms, the AI legalese decoder can process and analyze legal documents, news articles, and financial reports to extract relevant information about agreements, contracts, and potential risks faced by companies. In the case of TSMC, the decoder can help assess the impact of the non-charging agreement with Apple on the company’s financials and overall market sentiment.

Furthermore, the AI legalese decoder can assist investors and analysts in understanding the legal factors influencing stock performance and market trends. By uncovering legal risks, regulatory changes, and competitive dynamics within the semiconductor and AI sectors, the decoder can provide valuable insights for investment decision-making.

Overall, the AI legalese decoder offers a powerful tool for navigating the legal complexities of the stock market, particularly in industries driven by technology and innovation. Its ability to process and interpret legal language can aid investors, analysts, and companies in making informed decisions and mitigating potential legal risks.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link