The New Taiwan Dollar (NTD) has recently experienced a remarkable surge, briefly breaking the 30 NTD mark to reach 29.59 NTD today (5th). This strong appreciation has led to a rush for currency exchange among the public, causing several online banks to experience system failures and putting significant foreign exchange loss pressure on export-oriented businesses. Analysts have warned that should the NTD rise another 10%, overall profits for listed companies could be impacted by 6% to 7.5%.

Industries particularly affected include PA components, optics, wafer foundries, PC/NB brands, and IC design, as their revenues are primarily denominated in USD. For instance, Delta Electronics (3008) states that every 1% appreciation of the NTD will reduce its EPS by 1.33 NTD; Foxconn (2317) expects a decline in operating margin by 0.2 percentage points; United Microelectronics Corp (2303) faces an impact of 0.4 percentage points; and ASE Technology Holding (3711) sees a reduction of 0.27 percentage points.

According to a report by CTWANT, an internal study from analysts has warned that if the NTD finally appreciates by 10%, the gross margin of listed companies' core businesses may drop by 4% to 5%, coupled with foreign exchange losses, leading to an overall profit impact of 6% to 7.5%. The semiconductor industry is expected to be affected by about 4% to 7%, while the downstream electronics industry could see an impact of about 1% to 1.5%, and the communications industry approximately 5% to 10%. However, analysts also indicated that compared to large semiconductor firms, export brands and component manufacturers face even greater pressure. Although the Central Bank clarified that this wave of appreciation is unrelated to the United States, the trend of NTD's strong rise from 33 NTD in April remains unchanged.