Why is Hon Hai Precision Industry stock falling today?

Hon Hai Precision Industry shares fell 2.0% to NT$244 on Monday, pressured by a company-specific regulatory overhang, involving U.S. scrutiny, that has dampened investor sentiment.

A U.S. Section 337 trade investigation that emerged last week — naming Hon Hai alongside Chinese rival Luxshare — has introduced fresh uncertainty around the company’s supply chain operations and competitive standing, particularly in the context of its critical role assembling Apple products.

Regulators were also probing the company and its peers over potential patent infringement involving server power supply makers.

Investors appeared to be treating the investigation as a near-term risk, even as the company’s fundamental trajectory remains robust amid strong artificial intelligence demand.

On the broader competitive and macro front, Taiwan’s technology sector has faced persistent headwinds from profit-taking after the TAIEX reached record highs in recent weeks, and geopolitical sensitivities around Taiwan-based manufacturers continue to weigh on sentiment.