Taiwan Stock Market Looms At Accelerated Losses Amid Semiconductor Downturn (TSE:1308, TWSE:1300)

The Taiwan stock market faces a potential acceleration in declines as weakness in the semiconductor sector, a key driver of the index, intensifies. On February 6, 2026, the Taipei Exchange's weighted index (TSE:1308) and the Taiwan Weighted Stock Index (TWSE:1300) each closed roughly 1.8% lower, reflecting broader sector underperformance. Key metrics show the semiconductor index down 4.2% for the week, versus a 0.8% drop for the overall market. The decline follows a 23% year-over-year slump in semiconductor sales from major foundries, according to industry data released on February 5, 2026. Analysts warn that demand softening in client-server and data center applications is likely to prolong the downturn, with earnings guidance for the first-half of 2026 showing a continued contraction.