Taiwan Stocks Slide 980 Points as Chip Shares Fall and Taiwan Dollar Weakens

TAIEX gives back the previous day's rally

Taiwan's benchmark stock index fell as much as 980.51 points on October 29, 2026, reaching 46,055.07 as selling in major technology companies erased the previous day's strong advance. Taiwan Semiconductor Manufacturing Co. (TSMC) dropped NT$35 to NT$2,390, while the Taiwan dollar weakened past NT$32.5 against the US dollar.

The TAIEX opened at 47,014.87, down just 20.71 points, before losses widened to about 2.08% from the previous close. The reversal followed a gain of 939.35 points on October 28, meaning the deepest decline exceeded that entire advance by 41.16 points.

MediaTek and Hon Hai also came under pressure. MediaTek fell as much as NT$235 to NT$4,000, while Hon Hai reached NT$247, down NT$4.50. Their declines helped pull the main index lower even as financial shares and several individual technology stocks rose.

The selloff came after the US Federal Reserve left interest rates unchanged and all four major US stock indices finished higher on October 28. Taiwan's market therefore moved in the opposite direction from the preceding US session, with investors also weighing technology earnings, elevated US bond yields and concerns about returns on artificial intelligence spending.

The figures describe trading during the session. A final closing level for the TAIEX and a final exchange rate were not given, leaving the scale of any later recovery unresolved.

How the decline developed

October 29 began with a modest retreat from the previous close of 47,035.58. Early trading then took the index below 47,000, followed by a deeper fall through a closely watched trend line near 46,502.

The sequence shows how quickly conditions changed across the morning:

• October 28: The TAIEX rose 939.35 points and regained the 47,000 level.
• October 29 opening: The index slipped 20.71 points to 47,014.87.
• Early trading: The index reached 46,826.68, with turnover exceeding NT$100 billion within ten minutes of the opening.
• 10:54 a.m.: The TAIEX stood at 46,330.67, down 704.91 points, or 1.5%, on turnover of NT$470.609 billion.
• During the session: The deepest quoted decline reached 980.51 points at 46,055.07.

The market also passed through a quoted low of 46,146 as selling intensified. Those readings capture successive stages of the retreat, from an initial loss of more than 200 points to a decline approaching 1,000 points.

The line near 46,502 was the quarterly moving average, a measure that smooths daily prices over roughly three months. Traders use it to compare the current index with its recent trend. Falling below it put the market beneath both that reference point and the more visible 47,000 threshold.

TSMC and MediaTek lead the pressure

TSMC opened at NT$2,420, down NT$5 from its previous close of NT$2,425. It traded at NT$2,415 early in the session and NT$2,395 as the decline deepened, before reaching the quoted low of NT$2,390. The maximum NT$35 loss amounted to about 1.44%.

MediaTek's fall was steeper in percentage terms. Its opening price of NT$4,205 was already NT$30 below the previous close. At NT$4,000, its loss of NT$235 represented a decline of about 5.55%.

Hon Hai briefly showed more resilience, trading as high as NT$252.50 early in the session. It also opened lower at NT$250 and later reached NT$247, about 1.79% below the previous close of NT$251.50.

The TAIEX is weighted by company size, so movements in large companies have more influence than equal price changes in smaller businesses. Selling in TSMC and other major electronics companies can therefore push the benchmark sharply lower while parts of the market remain positive.

Delta Electronics added to the weakness, falling more than 3% to NT$1,485. The electronics sector index dropped more than 2%, while the semiconductor index declined more than 1.5%, showing pressure across a wider group of technology shares.

Financial shares rise as smaller stocks lose momentum

Financial shares provided one of the clearest pockets of strength, with their sector index rising more than 1% during the morning. Early gains also appeared in memory and display shares, although that resilience became less consistent as selling spread.

AUO, the display panel manufacturer, moved from a gain to a loss and fell nearly 4% to NT$34. Plastics shares also turned negative, with their sector index dropping close to 1%.

The TPEx Index, which tracks shares on Taiwan's exchange for many smaller companies, initially rose 0.28% before turning lower. Its reversal showed that the early contrast between a weak main board and firmer smaller stocks did not last throughout the morning.

Several individual companies nevertheless retained strong gains. Faraday Technology reached its daily upper price limit at NT$231.50. Fitipower Integrated Technology rose 7.81% to NT$207, VIA Labs gained 5.99% to NT$141.50, Elite Semiconductor Microelectronics Technology advanced 5.08%, and Chroma ATE increased 4.49% in early trading.

The mix gave investors a more complicated picture than the headline index alone. Major chip shares were pulling the benchmark down, financial shares were advancing, and selected technology companies were attracting buying despite the broader retreat.

UMC and WIN Semiconductors move in opposite directions

United Microelectronics Corp. (UMC), another major chip manufacturer, fell more than 5% to NT$118.50 early in trading and subsequently touched its daily lower price limit at NT$115.50. Trading volume exceeded 230,000 lots.

Taiwan's daily price limits restrict how far most individual shares can rise or fall in a single session. A stock reaching the lower limit has moved to the bottom of its permitted daily range, while one reaching the upper limit has moved to the top.

WIN Semiconductors moved in the opposite direction, reaching its upper limit at NT$594 after posting third quarter earnings of NT$4.55 per share. Trading volume exceeded 50,000 lots. The company manufactures chips using gallium arsenide, a material used in certain communications and radio frequency components.

The contrast between UMC's fall and WIN Semiconductors' rise illustrated the importance of company results within the broader technology selloff. Investors were selling some chip manufacturers heavily while buying others with earnings news that attracted demand.

The Taiwan dollar reverses an early gain

The Taiwan dollar opened stronger at NT$32.39 per US dollar, an improvement of NT$0.028 from the previous session. It then reversed as shares weakened, crossing NT$32.4 and NT$32.5 before reaching NT$32.564.

At that weakest point, the currency had depreciated NT$0.146 from its previous close. Its midday reading was NT$32.533, weaker by NT$0.115, with turnover at Taipei Forex Inc. reaching US$1.213 billion.

The exchange rate expresses how many Taiwan dollars are needed to buy one US dollar. A rise from NT$32.39 to NT$32.564 therefore means the Taiwan dollar has weakened: buying the same dollar costs more local currency.

Foreign investment can connect the two markets. Overseas investors buying Taiwan shares may exchange foreign currency for Taiwan dollars, while investors moving money out may do the reverse. The day's final foreign investor trading balance and the amount of money transferred abroad were not given.

Asian currencies moved unevenly. The Japanese yen fluctuated around 157 to 158 per US dollar, while the South Korean won recovered some ground after a sharp decline the previous day. Taiwan's currency weakened alongside its stock market.

Why a Fed pause did not calm technology shares

The Federal Reserve's decision to keep its benchmark rate unchanged matched market expectations. The decision nevertheless came with two officials favoring an increase and voting against holding rates steady, keeping attention on the possibility of further tightening.

The Federal Reserve's October 28 statement was approved by the Federal Open Market Committee in a 10–2 vote. It said: "The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate." Lisa D. Cook and Beth M. Hammack dissented, preferring to raise the target range by 1/4 percentage point.

The Fed also continued to focus on inflation and employment data. Holding rates unchanged leaves existing borrowing costs in place, so investors still have to judge how those costs will affect business spending, economic growth and corporate profits.

US Treasury yields added another pressure point. The yield on the US government bond maturing in ten years remained elevated. Higher bond yields give investors an alternative source of returns and can make expensive shares less attractive, especially when much of their value depends on profits expected years from now.

Alphabet's shares fell sharply after regular US trading ended, adding concern about whether large investments in artificial intelligence would generate sufficient profits. That timing matters: gains in the main US indices reflected the regular session, while Alphabet's subsequent decline gave Asian investors another development to consider.

Taiwan's large technology companies sit close to that investment cycle through chipmaking, electronics manufacturing and related equipment. Expectations about AI demand can support their shares, while doubts about customer spending and profitability can quickly change investor appetite.

Central bank decisions remain in focus

The European Central Bank was scheduled to announce its interest rate decision on the evening of October 29, followed by the Bank of Japan on October 30. Those decisions were the next dated events on the market calendar.

Investors generally expected Japan's central bank to leave rates unchanged. Attention centered on whether Governor Kazuo Ueda would signal another increase, with the yen trading near 157 to 158 against the dollar ahead of the decision.

For Taiwan, the immediate developments were concrete: the benchmark had surrendered the previous day's rally at its deepest point, major electronics shares were falling, and the local currency had weakened beyond NT$32.5 per dollar. Financial shares and selected technology winners offered some support, but selling had spread beyond the largest companies during the morning.

Key Points

• The TAIEX fell as much as 980.51 points, about 2.08%, to 46,055.07 on October 29.
• The deepest decline exceeded the previous day's 939.35 point gain.
• TSMC reached NT$2,390, MediaTek NT$4,000 and Hon Hai NT$247 during trading.
• Financial shares rose more than 1%, while UMC touched its lower price limit and WIN Semiconductors reached its upper limit.
• The Taiwan dollar weakened to NT$32.564 per US dollar before reaching NT$32.533 at midday.
• The Fed held interest rates unchanged, with European and Japanese central bank decisions next on the calendar.