Taiwan stocks declined on Wednesday as investors secured profits before the United States Federal Reserve’s rate decision. Market watchers noted that Taiwan stocks had recently set record highs, fueling caution ahead of the announcement.
The benchmark TAIEX fell 191.39 points to close at 25,438.25. Total turnover reached NT$428 billion, equal to around US$14 billion. Analysts said the selling reflected both profit-taking and anxiety over global policy signals.
Major technology names led the downturn. TSMC dipped 1.17 percent to NT$1,265. Foxconn lost 1.62 percent to NT$212. MediaTek slid 1.63 percent to NT$1,510. Delta Electronics slipped 0.59 percent to NT$836. Together, these companies weighed heavily on the index.
Different sectors showed contrasting performances. Computer peripherals, electrical machinery, and semiconductor shares weakened. However, textile, sports and leisure, plastics, and ceramics stocks moved higher. This rotation highlighted shifting investor preferences within the market.
Memory chipmakers stood out with strong gains. Winbond Electronics surged 5.19 percent, while Nanya Technology advanced 5.92 percent. Winbond traded 441 million shares, and Nanya traded 352 million shares. Both ranked first and second in market volume.
Silicon carbide–related companies also extended their recent rally. Episil-Precision, Mosel Vitelic, Episil Technologies, and Niko Semiconductor all hit their daily price limit. Episil-Precision and Mosel Vitelic have now reached the limit for four straight sessions. Demand for SiC remains robust due to its efficiency and power-handling ability.
Market experts offered a cautious outlook. Taishin Securities Investment Advisory Vice President Huang Wen-ching said investors want clarity from the Fed. He noted that equities had already delivered significant gains this quarter. As a result, traders prefer a wait-and-see approach.
Huang added that even if the Fed delivers in line with expectations, the TAIEX may consolidate. He warned that any surprise statement could unsettle global markets. This reinforces why traders are cutting risk before the meeting.
Looking forward, investors will watch U.S. monetary policy for direction. Taiwan stocks may remain sensitive to Fed signals in the near term. Many believe the next move depends on how the central bank frames its rate path.
