Chip stocks continued to slide, with Hua Hong Grace (01347) dropping 9.07% to HK$95.75 and SMIC (00981) falling 6.40% to HK$57 as of press time, according to market data.

On the news front, Taiwan Semiconductor Manufacturing (TSM) released its latest revenue report on October 8, showing September revenue of NT$511.86 billion, down 0.6% month-on-month but up 54.6% year-on-year.

For the first three quarters of 2026, Taiwan Semiconductor Manufacturing reported revenue of NT$3,898.73 billion, representing a 41.1% increase compared to the same period last year.

Goldman Sachs recently issued a research report estimating that Taiwan Semiconductor Manufacturing's third-quarter revenue will grow 15.3% quarter-on-quarter in U.S. dollar terms, with further growth of 11.0% in the fourth quarter, maintaining rapid expansion throughout the year on the back of strong demand for AI and high-performance computing.

Goldman Sachs forecasts third-quarter and fourth-quarter gross margins of 67.5% and 67.3% respectively, slightly lower than the 67.7% recorded in the second quarter, primarily reflecting the short-term cost dilution effect from the ramp-up of the N2 process node.