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Taiwan Stocks Plunge 1,374 Points, Falling Below 42,000 as AI Concerns Weigh on Market
Electronic Technology · Semiconductors · economic_daily · 2026-11-05
Taiwan's benchmark index dropped 3.2% to close at 41,574 points, driven by a sell-off in AI-related sectors and major tech stocks following US election uncertainties.
What Happened
Market Sell-off: The Taiwan stock market experienced a significant downturn today, with the weighted index falling 1,374.19 points to close at 41,574.72. This 3.2% decline marks the 13th largest single-day point drop in history, pushing the index below the 42,000-point threshold to its lowest level since July 31, accompanied by a trading volume of NT$926 billion.
Sector Impact: Concerns regarding the pace of AI data center construction triggered a heavy sell-off in the thermal management and PCB sectors. Stocks such as Auras, Jentech, and Holy Stone hit their daily limit-down, while other key players like Chaun-Choung and ABF substrate manufacturers including Unimicron, Nanya PCB, and Kinsus also suffered limit-down closures.
Heavyweight Performance: TSMC initially provided some support but succumbed to afternoon selling pressure, closing down 0.88% at NT$2,240. Other major tech stocks, including MediaTek and Delta Electronics, faced significant losses of 6.86% and 7.38% respectively, reflecting broad-based weakness across the electronics sector.
Analyst Insight: Analysts at Taishin Securities noted that the decline was largely a reaction to the volatility in US technology and semiconductor stocks following the US midterm elections. While market sentiment is currently cautious regarding AI infrastructure timelines, demand for components remains intact, suggesting a period of consolidation and sector rotation between 40,000 and 42,000 points.