Taiex drops below 40,000 after 1,830.55-point slide as AI capex worries intensify
Taiwan's Taiex broke below 40,000 amid a sharp tech-led selloff, driven by mounting skepticism over AI capex payback and reinforced by an overnight drop in the Philadelphia Semiconductor Index. With TSMC's heavy index weight amplifying declines and semicap components hitting limit-down, the news signals a tightening risk appetite toward AI/semiconductor exposure across Asia's hardware supply chain, pressuring sector-linked equities in the near term.
Affected assets
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AI Insight · NCSKSAMSUNG2USD/USDTAI Insight
▼ Bearish
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Taiwan’s Taiex fell below the 40,000 mark, dropping 1,830.55 points (-4.40%) to 39,772.81 as of 11:53 a.m. local time on July 29. TSMC, which accounts for over 40 per cent of total market value, slid 3.29 per cent to NT$2,205. Some semiconductor component stocks also hit the 10 per cent daily limit down. The selling was driven by deepening doubts about whether AI-related capital spending will deliver the expected returns.