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Taiwan Stocks Plunge Over 1,300 Points, Falling Below 42,000 Mark
Electronic Technology · Semiconductors · economic_daily · 2026-11-05
Taiwan's stock market suffered a sharp decline, dropping 3.2% as concerns over AI data center investments triggered a sell-off in major tech stocks.
What Happened
Market Sell-off: Taiwan's stock market experienced a significant downturn today, with the weighted index falling 1,374.19 points to close at 41,574.72. The 3.2% decline marks the lowest level since late July, accompanied by a heavy trading volume of NT$926.02 billion.
Trigger Factors: The sell-off was primarily driven by fears regarding the impact on US AI data center construction, which led to a sharp decline in the Philadelphia Semiconductor Index. This negative sentiment spilled over into the local market, causing widespread selling pressure across tech-heavy sectors.
Heavyweight Stocks: Major index components faced significant pressure, with TSMC closing down at NT$2,240 and MediaTek falling by NT$255. Delta Electronics saw a decline of over 7%, while Hon Hai also ended in the red. Financial, textile, and cement stocks showed relative resilience amid the broader market rout.
Outlook: The high trading volume suggests intense selling pressure, indicating that the market may face continued volatility in the short term. Investors are advised to closely monitor US tech stock performance and any further developments regarding the AI industry to gauge potential market stabilization.