Taiwan Semiconductor Manufacturing Company Ltd. TSM and other leading Taiwanese stocks have taken a hit in the U.S. pre-market following the announcement of U.S. President Joe Biden’s withdrawal from the presidential race.
What Happened: TSMC’s shares dropped 1.25% in the U.S. pre-market on Monday after a more than 3% fall in Taipei.
Other Taiwanese stocks, including United Microelectronics Corp. UMC and ASE Technology Holding Co., Ltd. ASX, also experienced a dip in the US pre-market by 1.28% and 0.73% respectively. Foxconn, a significant Nvidia AI server maker, saw its stock price plunge nearly 6% in Taiwan.
The Taiex index, which had seen a nearly 28% rise this year as of July 19, plummeted almost 700 points, or 3.04%, at one point on Monday.
Why It Matters: Taiwan’s Foreign Minister Lin Chia-lung had previously asserted that Taiwan must depend on itself for defense and is expected to further boost spending and modernize its military in response to the threat posed by China.
Last week, TSMC shares were also trading following Trump’s suggestion that Taiwan should compensate the United States for its defense, raising concerns about the impact on Taiwan’s chip industry and the country’s stock market. Reports of Biden contemplating stricter trade restrictions with China further jolted the rest of the semiconductor.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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