FX.co ★ TAIEX Slumps 4.7%, Ends at Over 2-Month Low

The TAIEX, Taiwan’s benchmark stock index, tumbled 2,031 points, or 4.7%, to 41,603 on Tuesday, extending its decline for a third straight session and hitting its lowest level since May 21. The drop was driven by a global selloff in chipmakers that dragged down major technology names.

Sentiment was further pressured by reports that a Chinese state-backed company has begun producing immersion DUV lithography equipment, as well as the market debut of ChangXin Memory Technologies (CXMT).

The electronic technology sector sank 5.3%. TSMC, the world’s largest contract chipmaker and a stock that represents more than 40% of the market’s total capitalization, fell 3.0% after closing flat in the previous session. Delta Electronics and MediaTek slumped 10.0% and 9.9%, respectively.

Among major memory chipmakers, Nanya Technology Corp. and Winbond Electronics Corp. each dropped 10.0%. On the macroeconomic front, Taiwan’s consumer confidence weakened in July, slipping from June’s four-month high.