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Taiwan Stocks Plunge Nearly 1,000 Points; Petrochemicals and Finance Provide Support
Electronic Technology · Semiconductors · economic_daily · 2026-10-13
Taiwan stocks fell sharply as tech sector concerns weighed on the market, though strength in petrochemical and financial stocks offered some stability.
What Happened
Tech Sell-off: Following warnings from the CEOs of Broadcom and Intel regarding AI expansion bottlenecks, the Philadelphia Semiconductor Index has faced consecutive declines, triggering a global tech sell-off. The Taiwan market experienced significant volatility, dropping over 1,200 points intraday before closing down 960.65 points at 48,341.31, with trading volume surging to NT$1.12 trillion.
Weighty Stocks Decline: Major tech heavyweights including TSMC, MediaTek, and Delta Electronics saw significant losses, with Delta Electronics falling over 6%. Conversely, financial stocks provided a defensive cushion for the broader market, with notable gains from Hua Nan Financial, CTBC Financial, and First Financial.
Petrochemical Strength: Bolstered by strong third-quarter earnings reports and rising oil prices, the petrochemical sector emerged as a market highlight. Formosa Petrochemical hit its daily limit, while Nan Ya Plastics and other related stocks saw substantial gains as investors rotated capital away from the tech sector.
Market Outlook: Analysts suggest that the current market pullback is not driven by panic, as evidenced by the lack of synchronized selling across major US indices. Investors are now shifting their attention to the upcoming TSMC earnings call this Thursday, which is expected to serve as a critical indicator for the market's near-term direction.