Taiex plunges more than 2,600 points; TSMC suffers record intraday drop - Focus Taiwan

Taiwan's stock market plummeted sharply on Monday, with the weighted index dropping over 2,600 points amid global market turmoil and growing concerns about the impact of rising interest rates on the A... Read original →

The Taiwan, China market crash stems from a violent collision between inflated AI expectations and rising-rate reality. TSMC’s record intraday plunge—wiping NT$3.5 trillion in value—not only reveals the fragility of its AI-driven valuation but also underscores global semiconductor hypersensitivity to U.S. Treasury yield shifts. Technically, CoWoS packaging, HBM memory integration, and advanced node ramp-ups may slow, disrupting NVIDIA’s supply chain. Compliance-wise, U.S. CHIPS Act strings and export controls are inflating TSMC’s Arizona costs, accelerating its Japan/EU diversification. Samsung and Intel will likely exploit this to capture mature-node share, especially in automotive chips, pressuring UMC and Vanguard. Over the next 12–24 months, a brutal shakeout looms: 'pseudo-AI' stocks lacking real revenue will collapse, while firms mastering 3D integration, power efficiency, and geopolitically neutral capacity will command pricing power.