Taiwan Stocks Fall After Record Run as Tech Shares Drop

Taiwan stocks retreated on Tuesday, Oct. 13, 2026, as the benchmark TAIEX lost 960.65 points to close at 48,341.31 in Taipei after U.S. technology losses and higher crude oil prices triggered selling in semiconductor shares.

According to Focus Taiwan, turnover reached NT$1.13 trillion, while the index moved between 48,066.36 and 49,126.27. The decline followed a record-setting period in which the TAIEX approached the 50,000-point level.

TSMC, which accounts for more than 40 percent of total market value, fell 1.97 percent to NT$2,490.00 and contributed about 400 points to the index decline, according to Focus Taiwan. Other technology companies including Nanya Technology, MediaTek and Alchip Technologies also declined.

Earlier gains had been driven by technology demand and expectations surrounding artificial intelligence infrastructure, with KGI Securities saying Taiwan-listed corporate earnings could grow 53 percent in 2026, followed by 24 percent growth in 2027 and 23 percent in 2028.

Yuanta Securities Investment Consulting Co. previously highlighted the upcoming earnings season and semiconductor outlook as market focuses after the rally.

"Attention is now turning to September sales and third-quarter earnings," said Yuanta Securities Investment Consulting Co., research note.

KGI Securities also said Taiwan equity ETFs recorded average monthly net inflows of about NT$130 billion this year, more than double last year's pace, while investment trusts posted eight consecutive months of net buying totaling NT$780 billion in the first nine months.

Moore Securities Investment Consulting analyst Adam Lin attributed Tuesday's decline to global technology weakness and investor concerns over developments affecting chip demand.

"The initial losses came after heavy losses among U.S. semiconductor stocks overnight after attacks on a Saudi airport, sending oil prices higher," said Adam Lin, analyst at Moore Securities Investment Consulting.

Lin said selling pressure increased as investors reacted to weakness in Asian technology shares and concerns about possible delays involving advanced AI chip shipments.

"Selling intensified as investors were stunned by falling technology stocks in Seoul this morning amid speculation about several developments, including a delay in shipments of Nvidia's Vera Rubin platform," said Adam Lin, analyst at Moore Securities Investment Consulting.

Despite losses among major technology companies, some sectors gained through market rotation. Petrochemical shares rose following improved earnings at major companies in the Formosa Plastics Group, according to Focus Taiwan.

"Despite the heavy losses in technology stocks, the Taiex still saw active rotational buying," said Adam Lin, analyst at Moore Securities Investment Consulting.

Financial stocks also provided support, with the sector rising 1.13 percent as CTBC Financial Holding, Mega Financial Holding and Cathay Financial Holding all advanced, according to Focus Taiwan.

Foreign institutional investors sold a net NT$165.34 billion in shares on the main board Tuesday, the third-largest net sell-off on record, according to the Taiwan Stock Exchange.

"Tuesday's trading showed that the Taiex had strong technical support at around 48,000 points, but any rebound will depend on U.S. market performance," said Adam Lin, analyst at Moore Securities Investment Consulting.

TSMC's upcoming earnings briefing was also being watched by investors after the company reached record levels during the previous rally, with semiconductor demand remaining a key market focus.