Taiwan's stock market took a sharp hit as foreign investors sold off chip and panel stocks heavily, dragging the main index down and barely holding above the 46,000 level.

• Foreign investors dumped huge amounts of UMC (United Microelectronics) stock, driving its share price down to the daily limit.
• Panel makers AUO and Innolux were also heavily sold by foreign investors, adding to the market-wide selloff.
• Financial stocks bucked the trend, with banks like Taishin and CTBC seeing foreign buying interest instead.
• AUO separately reported a swing to a net loss for the quarter and warned that brand customers will likely buy fewer panels next quarter as restocking season winds down.
• ASE Technology, a major chip packaging firm, posted strong profit growth on booming demand for advanced chip packaging tied to AI.

Outlook: Chip and panel stocks may stay under pressure in the near term as foreign selling continues, while AI-related demand keeps advanced packaging and materials firms like ASE on a stronger growth track.