Taiwan shares close lower as tech stocks fall on AI concerns

Taipei, Sept. 15 (CNA) Shares in Taiwan closed lower Tuesday, led by the electronics sector amid worries over AI development after the heads of three U.S. AI giants -- Anthropic, OpenAI and xAI -- warned of risks and called for a slowdown in development, dealers said.

After falling 0.70 percent Monday, the Taiex, the Taiwan Stock Exchange's benchmark index, ended down 351.03 points, or 0.77 percent, at 45,511.49 Tuesday after moving between 45,491.97 and 46,009.85. Turnover totaled NT$603.45 billion (US$18.99 billion).

"The local main board had already reflected the warnings from the three AI executives yesterday, and selling continued today after AI-related stocks in the United States plunged overnight," Cathay Futures Consultant analyst Tsai Ming-han said, referring to a 5.86 percent tumble in the Philadelphia Semiconductor Index.

"But the selling pressure was not overwhelming, as AI investment has continued with no changes in fundamentals," Tsai said. "So TSMC, one of the major AI stocks, remained resilient, keeping the Taiex from falling further."

Despite the electronics index falling 0.65 percent, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which accounts for over 40 percent of the market's total value, rose 0.21 percent to close at NT$2,385.00.

Among other semiconductor stocks, however, IC packaging and testing firm ASE Technology Holding Co. shed 3.27 percent to end at NT$592.00, smartphone IC designer MediaTek Inc. fell 2.85 percent to close at NT$4,430.00, and memory chip supplier Nanya Technology Corp. ended down 1.59 percent at NT$465.50.

Outside the semiconductor industry, iPhone assembler and AI server maker Hon Hai Precision Industry Co. closed down 0.80 percent at NT$246.50, while Quanta Computer Inc., another AI supplier, ended up 0.15 percent at NT$333.00.

Yageo Corp., the world's third-largest multilayer ceramic capacitor supplier, closed down 1.47 percent at NT$537.00, while power management solutions provider Delta Electronics Inc. rose 3.27 percent to end at NT$1,670.00.

Tsai said the financial sector reversed Monday's 1.94 percent gain, falling 1.10 percent Tuesday and adding pressure to the Taiex.

Fubon Financial Holding Co. fell 1.95 percent to close at NT$151.00, while Cathay Financial Holding Co. shed 2.22 percent to end at NT$110.00. E. Sun Financial Holding Co., however, closed up 2.35 percent at NT$69.70.

Among old economy stocks, China Airlines lost 1.49 percent to close at NT$19.90, while EVA Airways ended down 2.02 percent at NT$41.20.

Reflecting the decline in shares of its subsidiary Nanya Technology, Nan Ya Plastics Corp. shed 5.34 percent to close at NT$221.50, while affiliate Formosa Plastics Corp. ended down 1.43 percent at NT$62.00.

"I think the impact of AI concerns has largely been priced in," Tsai said. "Now, market attention will turn to the U.S. Federal Reserve again."

The Fed is scheduled to begin a two-day meeting later Tuesday.

"Before the Fed's decision, the Taiex is expected to remain in consolidation mode, awaiting comments from Fed Chairman Kevin Warsh."

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$62.70 billion worth of shares on the main board Tuesday.