Shares on the Taiwan Stock Exchange declined sharply on Feb.25, with the Taiex index falling 279.59 points, or 1.19%, to close at 23,285.72.

This dip followed news of Microsoft canceling data center leases, raising concerns about potential slowdowns in AI investments.

Total trading volume on the exchange reached NT$392.17 billion (US$11.96 billion). The market opened lower by 0.80%.

The downturn worsened as semiconductor-related stocks, including Taiwan Semiconductor Manufacturing Co. (TSMC), posted significant losses.

TSMC, Taiwan’s most valuable stock, fell 1.86% to close at NT$1,055.00 (US$33.76), significantly influencing the Taiex’s decline.

Recent Taiwan Semiconductor Manufacturing Co. developments