Electronics Sector Stock Price Index Futures Margin & Contract Specifications

What Is the Electronics Sector Stock Price Index?

The Electronics Sector Index is compiled by the Taiwan Stock Exchange (TWSE) and includes all electronics-related stocks listed on the exchange. It reflects the overall performance and trend of Taiwan’s electronics industry.

As Taiwan is a global hub for the technology industry, electronics stocks account for around 60%–70% of the Taiwan Weighted Index’s market capitalization. In practice, when electronics stocks are strong, the broader market is usually strong as well—making the Electronics Index one of the most important indicators for gauging bullish or bearish conditions in Taiwan’s stock market.

The Electronics Index is calculated using a market capitalization–weighted methodology, meaning companies with larger market values exert greater influence on index movements.

To accommodate investors with different capital sizes and risk tolerance, the Taiwan Futures Exchange (TAIFEX) has introduced Mini Electronics Futures (ZEF). The mini contract is one-eighth the size of the standard Electronics Futures, significantly lowering the entry barrier for investors.

Factors Affecting the Electronics Sector Stock Price Index

1. Global Macroeconomic Conditions and Monetary Policy

• Interest Rate Policy: Electronics stocks are largely considered growth stocks and are highly sensitive to interest rates. As a result, U.S. interest rates and Federal Reserve (Fed) policy strongly influence electronics futures prices. When the Fed raises rates, higher funding costs put pressure on high-valuation tech stocks; conversely, rate cuts support valuation recovery and drive electronics futures higher.
• Exchange Rate Movements (USD/TWD): When the New Taiwan dollar depreciates, foreign investors may sell Taiwanese equities in the short term, weighing on the market. However, for electronics exporters, a weaker TWD generates foreign exchange gains, supporting earnings. On the other hand, an excessively strong U.S. dollar often signals capital flowing back to the U.S., which is generally unfavorable for Taiwan equities—including electronics stocks—and can pressure electronics futures prices.

2. Industry Fundamentals and Business Cycles

The electronics industry is highly cyclical. During inventory destocking phases, electronics index performance is typically weak. When inventory restocking begins, the index gains upward momentum, and electronics futures prices rise accordingly.
The index is also influenced by electronics export orders, including sales data and order outlooks for smartphones, laptops, and servers. Strong orders indicate robust demand for electronic products and equipment, supporting electronics futures prices.
New technologies—such as AI, 5G, and electric vehicles—create new sources of value and demand. Breakthroughs and adoption of these technologies can significantly lift electronics futures prices.

3. International Technology Equity Markets

Many Taiwanese electronics companies are part of the supply chains of major U.S. technology firms such as Apple, NVIDIA, and AMD, resulting in a strong correlation with U.S. technology indices.
For example, TSMC’s ADR and its share price in Taiwan often move in line with the Philadelphia Semiconductor Index (SOX).
The Nasdaq Index reflects global risk appetite for technology stocks. When the Nasdaq strengthens, foreign investors typically increase allocations to Taiwanese electronics stocks.

4. Earnings of Taiwanese and U.S. Technology Giants

Earnings results and guidance from U.S. AI leaders directly influence Taiwan’s electronics supply chain stocks. For instance, when NVIDIA reports earnings above market expectations, electronics futures prices are often boosted.
Because electronics futures are market-cap weighted, heavyweight companies—such as TSMC, which accounts for around 40%–50% of the Electronics Index—have an outsized impact. If TSMC’s outlook exceeds expectations, electronics futures prices may rise sharply even if other electronics stocks remain flat.

5. Foreign and Institutional Investor Net Buying or Selling

Foreign investors hold a very large share of electronics stocks, especially heavyweight names. When global risk-off sentiment prompts foreign investors to sell Taiwanese equities, electronics stocks often suffer the largest declines, causing the Electronics Index to underperform.

6. Geopolitics and Supply Chains

Geopolitical developments affect not only fundamentals but also risk premiums. Rising cross-strait tensions between China and Taiwan can heighten market concerns and trigger capital outflows, leading to declines in electronics futures prices.

7. Tariff Policies

Tariff policies are another key factor. For example, export controls imposed during the U.S.–China tech conflict can trigger heavy selling in electronics futures if markets anticipate lost orders from China.
Over the medium to long term, however, global firms may shift orders from China to Taiwan—the so-called “order diversion effect”—which supports the long-term fundamentals of the electronics sector and often leads to a rapid price rebound after initial shocks.
Conversely, threats such as high tariffs on imported chips, like those proposed by the U.S. in 2025, directly hurt Taiwan’s electronics export margins, triggering sell-offs in equities and declines in electronics futures prices.

Electronics Sector Index Futures Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Domestic Futures

Electronics Sector Index Futures Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Electronics Sector Index FuturesFutures, Mini Electronics Sector FuturesFutures.

Electronics Sector Index FuturesLast Trading Day

Futures