U.S. Semiconductor Stocks Surge While TSMC ADR Dips; Analysts Eye Taiwan Index Futures Settlement

(CNA reporter Chung Jung-feng, Taipei, July 15) U.S. semiconductor stocks surged, while Taiwan Semiconductor Manufacturing Company (TSMC) American Depositary Receipts (ADR) declined 0.28% to close at USD 420.39. The Taiwan Index Futures night session closed at 45,015 points, up 225 points, while TSMC futures closed at 2,418 points, down 4 points. Foreign investors increased their net short positions on the Taiwan Index Futures to 83,300 contracts, with today’s futures settlement drawing close attention.

Institutional investors noted that despite cooling U.S. inflation data, ongoing U.S.-Iran tensions have kept international oil prices volatile, leading to heightened fluctuations in Taiwan’s stock market. Market participants are watching whether the Taiwan Index Futures will settle under downward pressure today. Ongoing developments in the Middle East and foreign investors’ positioning strategies in Taiwan’s spot and futures markets remain key concerns. TSMC’s investor briefing scheduled for the 16th is seen as crucial for gauging the global semiconductor and artificial intelligence (AI) industry outlook.

The U.S. June Consumer Price Index (CPI) rose 3.5% year-on-year, a slower pace than expected. Coupled with strong earnings from U.S. banking stocks, the four major U.S. indices advanced. The Nasdaq Composite rose 233.83 points (0.9%) to close at 26,107.01, while the Philadelphia Semiconductor Index surged 314.15 points (2.54%) to 12,661.93.

TSMC’s ADR closed down 0.28% at USD 420.39, while NVIDIA gained 4.06% to USD 211.80, AMD rose 2.57% to USD 548.13, and Intel jumped 4.5%. SK Hynix ADR soared 27.29%, and Micron rose 4.92% to USD 983.12. IBM, however, plunged over 25% to close at USD 217.07.

U.S. President Trump announced today that he would cancel the proposed 20% fee on all goods passing through the Strait of Hormuz, replacing it with trade agreements with Persian Gulf allies. He also stated that Gulf nations would make substantial investments in the U.S.

On July 14, Taiwan’s stock market experienced extreme volatility, swinging 1,710.36 points. The weighted index briefly broke below 44,000, hitting a low of 43,654.04, before closing at 44,737.95, down 642.57 points, leaving a long lower shadow of 1,083.91 points. The three major institutional investors collectively sold short NT$75.36 billion, with proprietary traders selling NT$38.291 billion, investment trusts buying NT$14.824 billion, and foreign and mainland investors selling NT$51.893 billion. Foreign and proprietary traders have sold for eight consecutive sessions, while investment trusts have bought for 15 consecutive sessions.

Regarding net positions in Taiwan Index Futures, the three major institutions reduced their net short positions by 837 contracts to 7,165. Foreign investors, however, increased their net short positions by 2,324 contracts to 83,390. (Edited by Yang Lan-hsuan) 1150715