The main TAIEX index fell 74.76 points to 7,615.89, after opening up 0.23 percent.

Chip maker TSMC shed 2.09 percent while LCD firm AU Optronics lost 2.34 percent. Electronics shares overall were down 1.19 percent.

Hon Hai fell 1.88 percent. The company denied reports that a plant in China was crippled by a strike, saying on Saturday that its production is on schedule at an important time for Apple.

Financial shares were off 1.1 percent.

The Taiwan dollar was up by T$0.118 to trade at T$29.25.

Foreign investors were net sellers on Friday, offloading T$350 million.