Taipei, Jan 20, 2026, 08:27 GMT+8 — Premarket
MediaTek Inc (2454.TW) kicked off Tuesday under the spotlight, following a 1.33% drop in the previous session to close at T$1,485. The stock is trailing as the broader market nears new highs. On Monday, shares fluctuated between T$1,465 and T$1,510, with roughly 5.9 million shares traded. (StockAnalysis)
Taiwan’s tech-laden benchmark remains on a hot streak, making that underperformance all the more significant. The TWSE Capitalization Weighted Stock Index hit 31,827.39 before closing Monday at 31,639.29. This keeps the spotlight on major index players to “justify” their premium valuations ahead of upcoming earnings reports. (Yahoo Finance)
Overseas markets showed mixed signals. Global stocks dipped Monday following U.S. President Donald Trump’s warning of fresh tariffs targeting goods from eight European countries. The levies are set to begin Feb. 1 and could increase again on June 1 if no agreement on Greenland is secured. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars, in a Reuters interview. (Reuters)
Chip stocks, especially, react sharply to headline risk given their cross-border supply chains and links to both consumer and enterprise spending. For MediaTek, the key issue now is whether investors continue rotating into the wider Taiwan tech sector or pull back after the stock’s recent slip.
Semiconductors stayed in focus as Micron Technology announced a letter of intent to acquire Powerchip’s P5 fabrication site in Taiwan for $1.8 billion in cash. The move targets boosting DRAM output—a key memory component for computers and phones—starting in the second half of 2027. Research firm TrendForce suggested this deal could lead to an upward revision of global DRAM supply forecasts for 2027. (Reuters)
Trade policy remains a flashpoint. South Korea announced it’s pushing for “favourable terms” in talks about potential U.S. tariffs on memory chips, underscoring how swiftly chip tariffs can shift from discussion to policy—impacting pricing power and demand. (Reuters)
MediaTek investors are focusing less on memory manufacturers and more on the risk appetite surrounding Taiwan’s AI and phone supply chains. The company’s chips power smartphones and connected gadgets—markets that can bounce back quickly but also stall sharply when trade tensions or currency shifts rattle buyers.
There’s a risk, though. Should tariff threats escalate into wider trade barriers or retaliatory moves, consumer electronics demand could take a hit, messing with inventory plans—even for firms not directly targeted. In such a scenario, chip stocks with lofty multiples might see their valuations drop purely on sentiment.
Looking ahead, MediaTek’s investor calendar highlights a cash dividend payable on Jan. 30, with its “Monthly Sales – January 2026” report due Feb. 10. These will be key events for traders wondering if Monday’s drop was just a blip or the beginning of a longer downturn.
