Taiwan Stocks Break Below 40,000, Close Down 1,873 Points
Taiwan stocks opened sharply lower on the 6th, breaking below the 40,000 mark and 38K and falling below the annual line, plunging as much as 3,737.67 points intraday, a record intraday drop, and closed down 1,873.08 points, the 4th-largest closing drop in history. Facing the sharp market correction, the Ministry of Economic Affairs issued a rare statement after the close on stock market trends, stressing that Taiwan's export growth momentum is strong and its industries have international competitive advantages, and asking all sectors to have confidence in Taiwan's industries.
AI Demand Boosts Q3 Economic Growth to 14.36%
The Ministry of Economic Affairs said that Taiwan's recent economic performance, including the economic growth rate, industrial production index and import-export performance, shows strong growth momentum, and although the stock market has recently fallen in a correction, Taiwan's industrial fundamentals are strong. Benefiting from continued expansion of demand for artificial intelligence, high-performance computing and cloud services, along with related product price hikes and stocking demand for new consumer electronics, shipments and production momentum for electronic ICT products have been boosted, driving related infrastructure demand and increased production in some traditional industries. The Directorate-General of Budget, Accounting and Statistics announced in October that the advance estimate for Q3 economic growth this year was 14.36%.
Exports Top US$660 Billion, Export Orders Aim for US$1 Trillion
The Ministry of Economic Affairs said Taiwan's manufacturing production index for the first nine months of this year was 135.48, up 21.83% year-on-year. Exports exceeded US$660 billion, up 46.2% year-on-year. Export orders reached more than US$810 billion, up 56.01% year-on-year, both surpassing full-year levels last year. Among them, export orders exceeded US$100 billion for two consecutive months in August and September, showing strong order momentum. Full-year exports are expected to exceed US$800 billion and reach up to US$900 billion, while export orders are expected to top US$1 trillion, demonstrating the strong competitiveness and resilience of Taiwan's industry strength.
US$19.23 Billion in Foreign Investment in First 9 Months, Investment Promotion Up 315%
In addition, foreign investment from January to September this year reached US$19.23 billion, and is expected to exceed US$20 billion for the full year, showing foreign firms' confidence in Taiwan's investment environment. This year's investment promotion forum secured 27 companies with future investment of about NT$666 billion, a sharp increase of 315% from last year. The Ministry of Economic Affairs also signed LOIs with 13 representative companies, with future investment of about NT$62.1 billion, up 28.5% from last year.
Semiconductor Chain Momentum Remains Strong, Eyes on US Midterm Elections
On the industry front, AI and cloud applications are driving demand for servers, switches and storage equipment, also boosting demand for wafer foundry, IC packaging and testing, memory, IC design and substrates. Traditional industries have benefited from advanced semiconductor process and high-end packaging and testing expansion, as well as increased machine tool orders, driving increased production of machinery equipment and related components. In addition, AI data center construction and the domestic grid resilience program are driving demand for transformers and power transmission and distribution equipment. Some electronic and industrial plastic products have also benefited from AI supply chain demand, while rising raw material prices have pushed up selling prices, boosting order values. Looking ahead, while the global economy faces geopolitical and trade policy uncertainties, the government will continue to monitor the impact of US midterm election results on subsequent tariff, industrial and trade policy directions. The Ministry of Economic Affairs reiterated that Taiwan has a complete and sound industrial chain with solid fundamentals, and the government continues to drive domestic industrial upgrading through diversified assistance measures, calling on all sectors to have confidence in Taiwan's industries.