The TAIEX, the weighted index on the Taiwan Stock Exchange, lost over 2,000 points and plunged below the 20,000 points mark in the morning session on Monday.

The three major weighted shares, Taiwan Semiconductor Manufacturing Company, Hon Hai Precision Industry Co. and MediaTek Inc., hit their daily decrease limit after the market opened on the first trading day after the Qingming Festival holiday.

Artificial intelligence (AI) shares also suffered heavy losses.