Drone-parts maker Jin Ming is under investigation over a military drone contract, and its shares have fallen sharply for two consecutive trading days — a setback for its shareholders.

• Prosecutors allege that Jin Ming and its subsidiary installed banned Chinese chips and camera lenses in drones sold to Taiwan's military, and then submitted falsified documentation on the origin of the parts.
• The general manager has been detained and held incommunicado; the chairman has been released and is now covering those duties.
• The shares hit the daily down limit again, falling to NT$32.4 after locking limit-down the previous day.
• The company says operations are normal and notes that drones account for only a small share of sales — metal stamping moulds make up most of its revenue, and defence orders are minimal.
• The broader Taiwan market also fell steeply, with the index briefly dropping more than 1,000 points and TSMC slipping below NT$2,500.

Outlook: Selling pressure on Jin Ming is likely to persist while the investigation continues, even though the contract itself accounts for only a minor part of its business.