Led by TSMC, Taiwan shares tumble after heavy U.S. tech losses

Taipei, June 24 (CNA) 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).

"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 said, referring to a 7.87 percent fall on the Philadelphia Semiconductor Index.

"Today, TSMC (Taiwan Semiconductor Manufacturing Co.) just fell victim to such profit-taking," Tsai said.

The tumble in the U.S. came before Micron, one of the largest memory chip suppliers in the world, was to report its quarterly results Wednesday U.S. time. Micron shed about 13 percent.

"Before Micron's results and guidance, investors stayed cautious," Tsai said. "In Taiwan, the sell-off in semiconductor stocks emerged and TSMC, which appeared relatively resilient yesterday, faced heavier pressure."

TSMC, which accounts for over 40 percent of the Taiwan exchange's market value, shed 4.02 percent to close at the day's low of NT$2,390.00, contributing about 800 points to the Taiex's fall.

"But, I still think today's downturn was technical in nature. TSMC's fundamentals remain sound during the AI boom," Tsai said.

Among memory chip suppliers, Winbond Electronics Corp. fell 3.07 percent to end at NT$205.00, and Nanya Technology Corp. lost 3.42 percent to close at NT$443.50.

Smartphone IC designer MediaTek Inc. dropped 5.51 percent to end at NT$4,285.00, while United Microelectronics Corp., a smaller contract chipmaker, bucked the downturn, rising 4.71 percent on a reported partnership with Intel in 3-nanometer process development.

Also in the tech sector, iPhone assembler and AI server maker Hon Hai Precision Industry Co. dropped 1.35 percent to close at NT$256.00, and power management solution provider Delta Electronics Inc. ended down 3.85 percent at NT$2,000.00.

"As large tech stocks were highlighted on the sell-side, interest rotated to select old economy heavyweights, providing some support to the Taiex," Tsai said.

On its ex-dividend date, Formosa Chemicals & Fibre Corp. soared 10 percent, the maximum daily increase, to close at NT$57.70, while Formosa Plastics Corp. also jumped 10 percent to end at NT$54.50.

Eclat Textile Co. rose 2.24 percent to close at NT$319.50, and rival Makalot Industrial Co. ended up 0.93 percent at NT$217.00.

With the financial sector ending down 2.08 percent, Cathay Financial Holding Co. lost 3.08 percent to close at NT$110.00 and Fubon Financial Holding Co. closed 2.18 percent lower at NT$124.50.

"Judging from today's movement, I think the Taiex saw technical support as it fell below 46,000 points, which could provide buying opportunities," Tsai said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$177.42 billion in shares on the market Wednesday, the largest net sell in history.