MediaTek Shares Plunge Over 7% as Taiwan Market Crashes

Taiwan's stock market suffered a severe sell-off on July 14, 2026, as geopolitical tensions and rising oil prices triggered a broad market decline. The main weighted index plunged 1506 points, while the over-the-counter index dropped nearly 6%, marking one of the worst trading days in history.

IC design leader MediaTek (2454) was among the hardest hit, with its stock price falling over 7% and breaching its quarterly line. The company's shares opened higher but succumbed to heavy selling pressure throughout the day. As of mid-morning, MediaTek's stock was down 5.88% at NT$3600, with significant trading volume.

The market downturn was fueled by renewed conflict between the US and Iran, following US President Trump's threat to reimpose sanctions on Iran and impose transit fees on goods passing through the region. This led to a more than 9% surge in international oil prices, prompting investors to flee the market.

Despite the current market turmoil, analysts remain optimistic about MediaTek's future prospects. The company is expected to launch its first flagship mobile chip utilizing TSMC's 2-nanometer process in the third quarter. Furthermore, its highly anticipated AI accelerator ASIC project is nearing mass production, with MediaTek forecasting approximately $2 billion in revenue contribution from AI ASIC business in the fourth quarter. The company is scheduled to hold its investor conference later this month.