Key Highlights

  • Taiwan's Taiex fell 2.63% to 43,091.87 on Thursday, November 12, 2026, the largest decline among major foreign markets that day.
  • Chipmakers led the drop, with Taiwan Semiconductor (NYSE:TSM), SK Hynix and Advantest lower in Asia and ASML down about 3% in Europe.
  • The selloff followed Nvidia's announcement that Jensen Huang resigned as chief executive, and Nvidia fell 4.34% in the US.
  • The Hang Seng fell 1.26% to 24,008.55, the Nikkei lost 0.70% and the Kospi slid 0.61%.

A Supply Chain Sells Off Together

Taiwan's market is heavily weighted toward semiconductors, so a shock at Nvidia reaches it directly. Nvidia is among the largest customers of Taiwan Semiconductor, the dominant maker of advanced AI chips, and Taiwan also hosts a deep network of packaging, testing and server assemblers that depend on Nvidia orders. When the news of Huang's resignation reached Asian trading, investors reduced exposure to the chain, and the Taiex closed at 43,091.87, down 2.63%. The move was the biggest among the major overseas indexes that day. Taiwan Semiconductor, SK Hynix, a leader in high bandwidth memory, and Advantest, which makes chip testing equipment, were all lower, and ASML, the Dutch supplier of lithography tools, fell about 3% when Europe opened. The broad pattern shows how concentrated the AI hardware ecosystem has become. Foreign investors hold a large share of Taiwan's free float, so global risk reduction often shows up quickly in the index. Server makers and component suppliers in the island's technology cluster are often seen as leveraged to Nvidia order volumes, which magnifies the response to news about the company.

Other Markets and Context

Beyond Taiwan, the Hang Seng fell 1.26% to 24,008.55 on chip worries, with technology stocks weak and reports that the United States might restrict Chinese AI firms' access to advanced chips adding to concern. Japan's Nikkei 225 lost 0.70% to 60,819.36, ending a three-session winning run, and South Korea's Kospi slipped 0.61% to 5,342.73. Rising US yields also weighed, with the 10-year near 5.10%. Some positive signals existed. Taiwan Semiconductor's October Revenue had risen about 59.7% from a year earlier, and SMIC reported third quarter revenue up 34%. In the US session, Applied Materials posted record fiscal fourth quarter revenue of USD 10.41 billion, up 53%, and traded modestly higher after hours, a sign that equipment Demand remains strong. These data points suggest the Business backdrop is firm even as share prices react to the news. Investors in Seoul and Tokyo also focus on memory and testing demand tied to AI accelerators, so weakness in the US designer tends to travel across borders within hours.

What Investors Weigh Now

The central question is whether the selloff reflects a change in demand or a reaction to uncertainty. Orders for AI servers are driven by large customers with committed spending plans, and several US companies raised outlooks this week. But Leadership changes at the leading designer can lead customers and suppliers to ask about product timing and allocations. Investors will look to Nvidia's November 17 results for commentary on supply, to monthly sales data from Taiwanese suppliers and to any shift in export rules. A further complication is the strong dollar and the yen near 160, which affect regional currencies and fund flows. Until those points are resolved, Asian chip stocks are likely to react strongly to each Nvidia headline. Funds that track regional indexes may also rebalance, which can amplify moves in the largest chip names.

Where Things Stand

Taiwan led an Asian chip selloff as Nvidia's leadership change raised questions across the supply chain. The next catalysts are Nvidia's November 17 report and any news on export controls. Strong equipment and revenue data from the sector provide support, but Volatility is likely to persist. Investors in the region will also follow the yen and the dollar, which affect fund flows into Asian equities.