The TAIEX, Taiwan’s benchmark stock index, tumbled 2,954 points, or 6.5%, to close at 42,671 on Friday, after finishing nearly unchanged in the previous session. The drop followed an overnight selloff on Wall Street, led by steep losses in semiconductor shares. The index sank to its lowest level since May 22, dragged down primarily by electronic technology stocks, which fell 7.5%.
TSMC, the world’s largest contract chipmaker and a heavyweight that represents more than 40% of the market’s total capitalization, slid 7.3%. Although the company reported strong results, they fell short of lofty investor expectations, fueling concerns about elevated capital expenditure and a weaker profitability outlook. MediaTek and Delta Electronics dropped 8.9% and 8.7%, respectively, while ASE Technology and United Microelectronics each declined 10.0%.
Losses were broad-based, with the health technology and technology services sectors retreating 4.7% and 7.0%, respectively. Over the week, the TAIEX lost 5.9%, marking its second straight weekly decline amid a global selloff in technology stocks.
