Street's slump overnight. The Weighted Price Index of the Taiwan Stock Exchange fell 201.20 points, or 2.07 percent, to 9,496.47.
The fall followed U.S. shares' decline on profit-taking Thursday after European Central Bank official pointed to rising price risks and a major Wall Street bank lowered its sales expectations for Chinese Internet company Baidu.com.
Traders said outlook for Taiwan's tech and financial issues is still grim in next few days.
Demands ahead of Christmas were already priced in, "(so) there is not going to be much good news in tech going ahead," said Issac Huang of Macquarie Securities.
He added financial issues are likely to be hurt by short-selling before next week's October futures settlement.
In Friday's trade, tech subindex fell 2.3 percent and financial subindex lost 3.5 percent.
TSMC ended down 3.2 percent to NT$61.30, Cathay Financial Holding lost 4.1 percent to NT$80.40, and MediaTek shed 4.8 percent to NT$570.
