40,000-Point Defense Battle! Walsin Lihwa, Nanya Tech, and Nearly 80 Others Hit Lower Limit; Index Drops Over 1200 Points

Taiwan's stock market suffered a severe decline on Wednesday, with the benchmark index falling by over 1200 points and pushing the market into a "defense of 40,000 points" battle. The sell-off saw nearly 80 listed and over-the-counter companies hit their lower trading limits, signaling widespread investor panic.

Key technology and semiconductor stocks were at the forefront of the decline. Companies such as Walsin Lihwa, Nanya Technology, ASE Technology Holding, GlobalWafers, and UMC all experienced sharp drops, with several hitting their lower daily limits. This broad-based selling pressure dragged the index down significantly from its opening gains.

The market's trajectory was volatile throughout the day. It opened lower, with the Taiex index down 111.88 points at 41491.48. However, a rebound in some heavyweight tech stocks like Foxconn, Realtek, and Innolux, along with gains in financial and traditional industries, briefly pushed the index into positive territory. But this recovery was short-lived as selling pressure intensified, particularly in memory and silicon wafer sectors.

This downturn in Taiwan followed a mixed performance in international markets. While the Dow Jones Industrial Average saw a modest gain and the S&P 500 edged up, the Nasdaq Composite declined, largely due to a significant drop in chip stocks. The Philadelphia Semiconductor Index plunged 4.49%, and Taiwan Semiconductor Manufacturing Company's (TSMC) ADR also fell. In Asia, South Korea's KOSPI initially rose but later experienced a sharp decline, while Japan's Nikkei also saw losses.