Taiwan stocks plunge 710 points as TSMC and chipmakers sell off

  • Taiwan’s weighted index fell sharply as semiconductor and electronics stocks sold off.
  • The index dropped as much as 710.62 points to 45,620.83 from Friday’s 46,331.45 close.
  • MSCI’s quarterly rebalancing was scheduled for the closing session amid expected higher turnover.

Taiwan’s weighted stock index fell as much as 710.62 points on the 31st to an intraday low of 45,620.83, breaking below the 46,000-point level after all four major U.S. stock indices closed lower and the Philadelphia Semiconductor Index plunged 3.47% on Friday. Taiwan Semiconductor Manufacturing (2330) dropped as much as NT$45 to NT$2,375, while MediaTek, ASE Technology Holding and Delta Electronics also declined sharply. Unimicron Technology hit its daily limit down after prosecutors searched the company over allegations involving Chinese-made PCB products relabeled as made in Taiwan. Analysts described the retreat as a technical correction after the market’s strong advance, while warning that TSMC’s break below its monthly moving average warrants caution. The market also faced heightened geopolitical uncertainty after foreign media reported a U.S. strike on Iranian rocket launchers in the Strait of Hormuz. MSCI’s quarterly index rebalancing was due to take effect in the closing session, and investors were preparing for increased turnover and sharp swings. Institutional investors broadly expected near-term consolidation, favoring phased buying over panic selling or aggressive bottom-fishing.

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