Taiwan’s AI-linked stocks opened the week with a sharp reality check on Monday, December 15, 2025, as a global “risk-off” wave hit technology shares across Asia. The Taiwan Stock Exchange’s weighted index (TAIEX) fell 331.08 points (-1.17%) to 27,866.94, with turnover at NT$436.78 billion—a session defined by heavy selling in mega-cap electronics and a rotation toward smaller, theme-driven pockets of the market. [1]
At the center of the pullback was TSMC (2330)—the bellwether of Taiwan’s AI supply chain—which slid NT$30 (-2.03%) to NT$1,450, while other AI ecosystem heavyweights such as Hon Hai/Foxconn (2317) and ASE Technology Holding (3711) also weakened. [2]
What changed overnight? In short: markets are re-pricing the “AI boom” around margins and returns, not just spending headlines—after fresh caution signals from U.S. tech earnings and guidance fueled another round of concern about how quickly AI investment translates into sustainable profits. [3]
The scoreboard: how Taiwan’s biggest AI stocks traded today
Monday’s selling pressure was concentrated where Taiwan is most exposed to global AI hardware spending: advanced chips, AI servers, data-center infrastructure, and the surrounding component stack.
Key large-cap moves highlighted in local market coverage included:
- TSMC (2330): down ~2% to NT$1,450 [4]
- MediaTek (2454): up ~1% to NT$1,420, bucking the broader electronics decline [5]
- Hon Hai / Foxconn (2317): down ~2.4% to NT$221.5 [6]
- Delta Electronics (2308): down ~1.7% to NT$922 [7]
- ASE Technology Holding (3711): down more than 3% (local coverage cited a near-4% decline) [8]
- Quanta (2382): modestly lower (local coverage showed it ending down around half a percent) [9]
The broader tape told the same story: Taiwan’s electronics sector fell, while old-economy and defensives provided relative support—a classic signature of risk reduction rather than a Taiwan-specific shock. [10]
Why the selloff hit now: Oracle–Broadcom jitters and a global tech de-risking
The immediate catalyst was not Taiwan corporate news—it was the global mood shift around AI spending.
Asian market reporting on Dec. 15 pointed to growing investor caution after U.S. developments reinforced anxiety about AI capex intensity vs. margin sustainability. Investing.com summarized the chain reaction: Broadcom warned about narrower margins despite strong AI-chip demand, while Oracle flagged weaker guidance and rising AI-related expenses—re-igniting skepticism about how quickly Big Tech converts massive AI budgets into earnings power. [11]
Taiwan’s local market wrap echoed that logic, tying Monday’s sharp drop to the shockwaves from U.S. tech. Local coverage noted that the Philadelphia Semiconductor Index plunged 5.1% late last week, and TSMC’s U.S.-listed ADR fell more than 4%, setting the tone for a gap-down open in Taipei and a deep early slide that later stabilized. [12]
Reuters’ global markets report on Dec. 15 captured the macro backdrop in one phrase: an “unwind in the AI-capex trade” spilling over from U.S. momentum selling into Asia, amplified by thinner year-end liquidity. [13]
For Taiwan AI stocks—many of which are effectively “AI infrastructure proxies” via chips, servers, networking, power, thermal, and substrates—this kind of global re-pricing tends to show up quickly and in size.
Intraday action: a 500-point drop, then a partial recovery—still below key levels
While the close looked orderly compared with the early chaos, Monday’s intraday path mattered for sentiment:
- The market opened sharply lower and at one point was down more than 500 points, with an intraday low around 27,684 before dip-buying and bargain hunting helped narrow losses into the close. [14]
- Multiple local reports emphasized that the index lost the 28,000 level and broke below the 10-day moving average, a technical detail closely watched by short-term traders in Taiwan’s momentum-driven market. [15]
That pattern—sharp early liquidation followed by a less-bad close—often signals forced selling and rapid de-leveraging, rather than a fundamental thesis break. But it also highlights why Taiwan’s AI stocks can be volatile: when global tech sentiment turns, Taiwan’s supply chain is often the first domino.
Rotation inside “AI”: silicon photonics surges even as mega-caps slide
One of the most important takeaways for AI-stock investors in Taiwan today wasn’t just the decline—it was where the money went instead.
Local market coverage described a clear rotation into smaller, theme-driven groups, including silicon photonics/optical interconnect names tied to AI data-center networking demand. In particular, Taiwan’s “silicon photonics” group remained strong, with IET-KY (4971) and Tong Hsing (6426) hitting limit-up, while other related names also rose. [16]
Brokerage commentary published on Dec. 15 also described investors actively seeking “new themes” as a defensive maneuver—calling out pockets such as shipping, silicon photonics, solar, low-earth-orbit satellite plays, and select traditional industries holding up even as AI-related tech weakened. [17]
This matters for SEO readers tracking “Taiwan AI stocks” because it shows the market is no longer trading AI as a single monolith. The market is increasingly segmenting AI exposure into:
- “Mega-cap AI” (foundry, platform chips, broad electronics leaders), and
- “Next-leg AI infrastructure” (optical interconnects, networking bandwidth, power delivery, thermal solutions—often smaller or mid-cap names)
Monday’s tape looked like a live demonstration of that split.
Flows and positioning: foreign investors stepped on the brakes
Beyond headlines, the flow picture in Taiwan is always critical—especially for AI-linked large caps that are common holdings for overseas funds.
A brokerage market recap published today reported that Taiwan’s three major institutional investor categories collectively recorded net selling of 545.47 億 (i.e., NT$54.547 billion) and that foreign investors accounted for 489.95 億 (i.e., NT$48.995 billion) of that selling—an outsized retreat consistent with a global risk-off session in tech. [18]
When foreign selling accelerates on a down day, it often pushes the largest AI names harder because those are the most liquid—and therefore the easiest to reduce quickly.
The macro lens: Taiwan rate expectations stay steady, supporting longer-term AI valuations
Even on a down day for AI stocks, macro matters—because rates, FX, and liquidity strongly influence how investors value long-duration growth themes like AI.
A Focus Taiwan report published Dec. 15 said economists broadly expect Taiwan’s central bank to keep key rates unchanged for a seventh straight quarter at its next policy meeting on Thursday, citing strong growth and stable inflation. [19]
The same report referenced DGBAS forecasts indicating Taiwan’s economy could grow 7.37% in 2025 and 3.54% in 2026, while the inflation forecast was revised to 1.67% for this year—below the central bank’s 2% alert threshold—reducing pressure for tightening. [20]
For Taiwan AI stocks, the implication is straightforward: a stable domestic rate backdrop can cushion valuation resets, even when global tech sentiment wobbles. It doesn’t prevent drawdowns, but it can help limit how far the market reprices long-term cash flows.
What analysts are saying today: “watch the quarterly line,” focus on trend winners
Local commentary published today leaned cautious on the near term—but not bearish on the broader AI trend.
A Taiwan market wrap cited a PGIM (Prudential) fund manager suggesting investors watch whether the index can hold above the “quarterly line” (a commonly watched moving-average level) and argued for “select stocks, not the market,” emphasizing positioning in medium-to-long-term trend names even amid short-term turbulence. [21]
That framing fits the current global narrative: the AI theme isn’t disappearing, but markets are becoming more selective about which parts of the AI stack have pricing power, defendable margins, and predictable order visibility.
What to watch next for Taiwan AI stocks this week
If you’re tracking Taiwan AI stocks for Google News/Discover updates, the next catalysts are less about Taiwan earnings and more about global positioning and policy:
- Central bank decision cluster globally
Reuters noted this week is packed with major central bank meetings (including in Europe and Japan) and key data, with markets already skittish after the U.S. tech selloff. [22] - Taiwan’s central bank meeting (Thursday)
Local economists expect no rate change, but guidance on FX, inflation, and growth matters for equity multiples—especially tech. [23] - AI spending scrutiny doesn’t go away
The market is still digesting whether AI infrastructure spending can sustain high growth and high margins. That debate—sparked again by Oracle and Broadcom commentary—remains a headline risk for Taiwan’s AI supply chain. [24] - Rotation signals
Today’s strength in silicon photonics suggests investors still want AI exposure—just not always through the largest, most crowded trades. [25]
Bottom line: Taiwan’s AI trade didn’t end today—markets just demanded better math
Monday’s pullback was a reminder that Taiwan’s AI stocks—TSMC, Foxconn, AI server builders, and the wider data-center ecosystem—sit at the intersection of two forces:
- Structural demand for AI compute and infrastructure, and
- Cyclical market psychology about returns, margins, and capex discipline
On Dec. 15, the cyclical force won the day, dragging the TAIEX below 28,000 and pushing the biggest AI names lower. [26] But the internal rotation into silicon photonics and other themes suggests investors are still searching for the next durable AI winners—just with sharper questions about profitability and valuation than they had a month ago. [27]
This article is for informational purposes only and is not investment advice.
References
1. focustaiwan.tw, 2. news.cnyes.com, 3. www.taisounds.com, 4. news.cnyes.com, 5. news.cnyes.com, 6. news.cnyes.com, 7. news.cnyes.com, 8. news.cnyes.com, 9. news.cnyes.com, 10. tw.stock.yahoo.com, 11. www.investing.com, 12. www.taisounds.com, 13. www.reuters.com, 14. tw.stock.yahoo.com, 15. news.cnyes.com, 16. news.cnyes.com, 17. www.sinotrade.com.tw, 18. www.sinotrade.com.tw, 19. focustaiwan.tw, 20. focustaiwan.tw, 21. www.taisounds.com, 22. www.reuters.com, 23. focustaiwan.tw, 24. www.investing.com, 25. news.cnyes.com, 26. focustaiwan.tw, 27. news.cnyes.com
