Taipei: Shares in Taiwan plunged over 1,000 points Wednesday after chip stocks in the United States suffered heavy losses overnight amid caution before Micron Technology Inc. released its quarterly results, dealers said. The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 1,057.05 points, or 2.24 percent, at 46,043.6 after moving between 45,819.71 and 46,909.98. Turnover totaled NT$1.45 trillion (US$45.44 billion).
According to Focus Taiwan, the decline followed a 7.87 percent fall on the Philadelphia Semiconductor Index. "After U.S. chip stocks fell overnight, investors here simply used the losses as an excuse to pocket their gains from local semiconductor stocks," Cathay Futures Consultant analyst Tsai Ming-han remarked, highlighting the influence of U.S. market trends on local sentiment. TSMC (Taiwan Semiconductor Manufacturing Co.) experienced significant profit-taking, shedding 4.02 percent to close at NT$2,390.00, contributing about 800 points to the Taiex's overall decline.
The U.S. market's downturn came ahead of Micron's quarterly results, with Micron's shares dropping roughly 13 percent. Tsai noted that investors remained cautious before the results and guidance, which led to a sell-off in Taiwan's semiconductor stocks. Despite TSMC's perceived resilience the previous day, it faced increased pressure during trading.
Other notable movements included Winbond Electronics Corp. falling 3.07 percent to NT$205.00, and Nanya Technology Corp. dropping 3.42 percent to NT$443.50. Smartphone IC designer MediaTek Inc. saw a 5.51 percent decline to NT$4,285.00. However, United Microelectronics Corp., a smaller contract chipmaker, rose 4.71 percent amid reports of a partnership with Intel in 3-nanometer process development.
In the broader tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. declined 1.35 percent to NT$256.00, while power management solution provider Delta Electronics Inc. ended down 3.85 percent at NT$2,000.00. Tsai pointed out that while large tech stocks were highlighted on the sell-side, interest rotated to select old economy heavyweights, providing some support to the Taiex.
On its ex-dividend date, Formosa Chemicals and Fibre Corp. and Formosa Plastics Corp. both soared 10 percent, the maximum daily increase, closing at NT$57.70 and NT$54.50, respectively. Eclat Textile Co. rose 2.24 percent to NT$319.50, and Makalot Industrial Co. increased 0.93 percent to NT$217.00.
The financial sector also ended down 2.08 percent, with Cathay Financial Holding Co. losing 3.08 percent to NT$110.00, and Fubon Financial Holding Co. closing 2.18 percent lower at NT$124.50. Tsai suggested that the Taiex might find technical support below 46,000 points, potentially offering buying opportunities.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$177.42 billion in shares on the market Wednesday, marking the largest net sell in history.