TSMC Leads Chipmaker Plunge As Trade Resumes After Typhoon Pause

Taiwanese giant TSMC has tumbled with several other leading chip makers as traders returned from a typhoon-imposed two-day break to play catch-up with a global tech rout, the Agence France-Presse (AFP) reported.

Other chip stocks ASE Technology Holding Co. and Hon Hai Precision Industry Co. slumped at least 4% each. I Image: TSMC

Equities across the world tumbled after disappointing earnings from "Magnificent Seven" titans Alphabet and Tesla fueled worries about the tech sector, which has driven a surge in markets and pushed all three main indexes on Wall Street to multiple record highs.

The rally, sparked by a frenzy to snap up firms linked to artificial intelligence (AI), has led to speculation that valuations are far too high and a correction could be around the corner if reports from other heavyweights such as Apple and Amazon also fall short.

Shares declined 5.6% in Taipei Friday, dragging down the benchmark Taiex index, which fell more than 3% to near a technical correction.

Other chip stocks ASE Technology Holding Co. and Hon Hai Precision Industry Co. slumped at least 4% each. Local markets reopened after a two-day closure due to a typhoon, Charlotte Yang and Sangmi Cha reported for Bloomberg News.