Taiwan's passive component stocks rallied even as the broader market tumbled, a bright spot for investors hunting shelter from the chip selloff.

• Taiwan's main index fell more than 900 points at one point, but passive component makers rose, with several hitting their daily limit.
• Walsin Technology jumped as much as 9% before closing up, on heavy volume.
• Strong July profits drove the move — some parts are in short supply, with orders booked through year-end and into next year.
• Walsin is spending billions of Taiwan dollars this year to expand capacity, and AI-related products should grow to a fifth of sales.
• Foreign investors turned buyers after three days of selling, as money rotated out of chips and into passive components.

Outlook: Money is flowing into passive components while chip stocks wobble, though it is too early to say the group becomes the market's new leader.