TAIPEI (Taiwan News) — Taiwan’s benchmark stock index extended its pullback on Friday, with individual stock performance showing clear divergence.
Stocks that had posted strong gains in recent weeks came under heavy profit-taking pressure. The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell as much as 1,467.93 points during the session, briefly dropping below the 45,000-point mark and recording its fifth-largest intraday decline on record, according to CNA and CTEE.
The index later recovered part of its losses as buying interest emerged at lower levels. It closed down 606.52 points at 45,070.94, slipping below the five-day moving average.
Turnover totaled NT$1.23 trillion (US$39.1 billion). Despite Friday's decline, the TAIEX gained 338 points for the week, extending its advance to a third consecutive week.
TSMC fell 0.84% to NT$2,365. MediaTek declined 2.93% to NT$4,300, Delta Electronics lost 5.15%, and Foxconn dropped 2.9% to NT$284.5.
The memory sector came under pressure after Raymond James analyst Karl Ackerman warned that DRAM and NAND prices could peak around mid-2026, earlier than expected. The report drove Micron Technology shares down more than 7% overnight, adding pressure to Taiwan's memory sector, according to Barron's.
Winbond Electronics hit its daily limit-down. Nanya Technology, Phison Electronics, PSMC and Elite Semiconductor Microelectronics Technology also recorded notable losses.
Heavy electrical equipment stocks also retreated after recent gains following Nvidia CEO Jensen Huang's (黃仁勳) comments on growing artificial intelligence electricity demand. Allis Electric and Shihlin Electric & Engineering both hit limit-down, while Fortune Electric and Chung-Hsin Electric & Machinery Manufacturing fell more than 6%.
AI server-related stocks moved lower. Quanta Computer, Wistron, Inventec, Compal Electronics, and Pegatron all closed lower.
By contrast, funds flowed into passive component stocks. Several names hit their daily limit-ups, including Honey Hope Honesty Enterprise, King Core Electronics, Inpaq Technology, and Max Echo Technology.
Despite broad market weakness, capital rotated rather than exited the market. Investors shifted toward sectors that are perceived to be less sensitive to market swings, including construction, shipping, automotive, biotechnology, financial services, and cloud-computing-related stocks.
Chipmaker UMC rose 5.2%. Diode manufacturer Panjit International, which has expanded into the AI server motherboard supply chain, gained 3.45%, reflecting selective buying in thematic and lower-valuation stocks.
Market participants said the index had accumulated substantial gains after surpassing 46,000 points earlier in the week, which led to profit-taking pressure. Concerns over Broadcom’s outlook, shifting expectations for the memory cycle, and volatility in US technology shares contributed to Friday’s pullback.
However, trading activity remained robust. Analysts said near-term market direction will likely depend on the performance of TSMC, AI supply-chain stocks, and US technology equities.
Yang Li-kai (楊立楷), manager of the E Sun Taiwan Market Capitalization Momentum 50 ETF, said demand for AI infrastructure remains in a structural growth phase. He said Taiwanese suppliers involved in advanced manufacturing, packaging and testing, liquid cooling, high-voltage power systems, high-end printed circuit board materials, silicon photonics, and co-packaged optics are expected to remain key beneficiaries.
These developments are expected to continue generating market interest and supporting capital inflows into related stocks. He added that Taiwan’s equity market may still have room to extend its current uptrend.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
