Taiwan Stock Market Drops Over 2,000 Points as Foreign Investors Sell Record NT$1.6 Trillion

On July 28, 2026, Taiwan's main stock index fell 2,030.83 points (about 4.65%) to 41,603.36, marking the third‑largest single‑day decline in its history. The drop was driven by a sell‑off in semiconductor stocks, with Taiwan Semiconductor Manufacturing Co. (TSMC) down 2.98%, MediaTek hitting its daily limit down, and Foxconn falling 5.93%. The Financial Supervisory Commission (FSC) said the volatility was normal market fluctuation.

Asian markets posted similar losses: South Korea fell 10.64%, Japan 4.20%, Hong Kong 0.21%, Singapore 0.17%, and Shanghai 1.32%. Despite the slump, the FSC noted that Taiwan’s equity market fundamentals remain sound, with a price‑earnings ratio of roughly 31.8, a dividend yield near 1.6%, and corporate revenues up 35.96% year‑to‑date to NT$30.49 trillion.

Foreign investors have sold more than NT$1.6 trillion of Taiwanese equities this year, a historic high, but experts argue capital has not fully withdrawn, shifting to indices, high‑dividend funds, or other instruments. They also point to ongoing AI‑related investments by domestic firms, which could sustain demand for memory and compute capacity.