Taiwan stocks face selloff risk after US chip index plunges 7.2%

U.S. stocks fell sharply on Friday, with the Philadelphia Semiconductor Index plunging 7.2%, as tech earnings failed to ease concerns over massive AI capital spending. Taiwan's stock market faces heavy selling pressure on Monday, with TSMC futures dropping NT$87 in after-hours trading. The Nasdaq fell 2.86%, the S&P 500 dropped 1.82%, and the Dow lost 1.09%. Intel shares crashed nearly 29% on weak guidance, while AMD, Qualcomm, and memory chipmakers also suffered steep declines. Taiwan's weighted index had already fallen 2.49% last Friday, with foreign investors selling NT$112.47 billion. Taiwan index futures fell 867 points overnight, signaling a potential sharp gap-down at Monday's open. The 45,000-point support level is a key focus, as analysts advise investors to manage risk amid expected volatility.