Taiwan's stock market opened down hard, losing the 46,000 level, with chip stocks leading the drop — bad news for investors who bought into last week's rally.

• The main index fell more than 500 points at the open, with TSMC, MediaTek, Foxconn and Delta all lower.
• IC substrate maker Unimicron crashed limit-down after prosecutors raided the company over suspected relabeling of China-made boards as "Made in Taiwan"; 14 people were questioned and five released on bail.
• The selloff followed a weak US session, where Fed chair Warsh sounded tough on inflation and pushed up bets on a September rate hike, hitting chip stocks hard.
• Related substrate names Kinsus fell sharply while Nan Ya PCB and Zhen Ding held small gains.
• The scare comes after a strong week: foreign investors poured money in on rising MSCI weightings and Nvidia's strong results, and daily turnover topped the trillion-dollar mark.

Outlook: A pullback of 500 to 600 points is seen as the near-term risk, though the broader picture stays firm and memory and passive-component stocks are being flagged as buy-the-dip candidates.