1. Taiwan's Taiex index fell 10% in Q1 2025 amid tariff fears. 2. Tariffs on semiconductors could significantly impact Taiwan's economy. 3. Emergence of DeepSeek raises concerns over demand for Taiwanese chips. 4. TSMC shares dropped 15%, following an 81% rise in 2024. 5. Global AI demand uncertainty affects Taiwan's AI supply chain outlook.
Concerns over tariffs and declining demand create uncertainty, adversely affecting investor confidence. Historical precedents, such as tariffs impacting steel and aluminum sectors, illustrate how similar policies can harm export-reliant businesses.
The article highlights significant factors influencing Taiwanese equities, particularly tariffs and AI demand, which are crucial for TW's business environment. These market dynamics could compel investors to reassess their portfolios, significantly impacting TW's stock price.
Immediate market reactions are likely to be influenced by upcoming tariff announcements. However, long-term impacts will depend on the sustained level of demand from U.S. tech firms post-announcement.