Taiwan Stock Market Falls Over 2200 Points, Breaches 40,000 Level with 210 Stocks Hitting Limit-Down; TSMC Contributes Nearly 800 Points; Focus Shifts to Holding Key 6-Month Moving Average

On May 29, Taiwan's stock market plunged over 2,200 points during intraday trading, breaching the psychological 40,000-point level and hitting a low of 39,384 points, approaching the 6-month moving average at 39,256 points. Over 210 listed and OTC stocks hit the daily trading limit-down. At the intraday low point, Taiwan Semiconductor Manufacturing Company (TSMC; 2330-TW) fell over 4%, contributing nearly 800 points to the index decline. MediaTek (2454-TW) and Delta Electronics (2308-TW) each contributed around 145 and 120 points, respectively.

At the intraday low, major contributors to the index drop included TSMC (~800 points), MediaTek (~145 points), Delta Electronics (~120 points), ASE Holding (3711-TW) (75 points). Together, these four large-cap tech stocks accounted for nearly 1,000 points of the decline. Additional contributors included Tripod Technology (~40 points), United Microelectronics Corporation (UMC; 2303-TW) (~40 points), Unimicron (~30 points), Nan Ya Plastics (1303-TW), Nanya Technology (2408-TW), and Yageo Corporation (2327-TW), each contributing over 30 points.

Institutional analysts noted that AI's rigid demand remains strong, and this correction is fundamentally a sentiment-driven adjustment rather than a reversal in fundamentals. Upcoming earnings reports from major tech firms, the Federal Reserve's policy decisions, and announcements on AI-related capital expenditures and monetization progress from companies like Microsoft, Meta, and Amazon will be critical in restoring bullish market confidence.

However, analysts advised investors to remain cautious and wait for stabilization in TSMC and other large-cap electronics stocks before making further moves.