Taiwan Semiconductor Slides Nearly 7% as Foreign Funds Dump $3.6B
Overseas investors withdrew $3.6 billion from Taiwanese equities this week, marking the largest weekly exodus since December and pressuring market liquidity. Taiwan Semiconductor Manufacturing Co. shares fell nearly 7% as AI-focused holdings were liquidated and oil supply concerns stoked global inflation fears.
1. Foreign Fund Exodus Hits Taiwan Markets
Overseas investors sold a net $3.6 billion of Taiwanese shares this week, the largest weekly withdrawal since late December, as global funds reduced exposure to regional markets. This concentrated selling has weighed on overall market liquidity and valuations across Taiwan’s benchmark indices.
2. Sharp TSMC Decline as Investors Liquidate AI Bets
Taiwan Semiconductor Manufacturing Co. shares plunged nearly 7% over the past five trading days, driven by aggressive unwinding of AI-focused long positions. The drop represents the steepest weekly decline for the company in recent months and underscores investor caution on capital-intensive chip investments.
3. Oil Supply Worries Amplify Market Volatility
Mounting concerns over an oil-driven inflation shock—fuelled by escalating Middle East tensions—have compounded the selloff, prompting funds to reassess risk and hedge currency positions. The dual pressure from AI trade exits and oil supply fears has sparked broader volatility in both equities and regional currencies.