** Shares of world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) fall 2.4% to T$1,030 ($31.60) on Wednesday morning, after U.S. Republican presidential candidate Donald Trump said Taiwan should pay for defence
** Stock of the Apple and Nvidia supplier
on track to snap two straight sessions of gain and heading for the biggest one-day pct decline since July 12.
** "I know the people very well, respect them greatly. They did take about 100% of our chip business. I think, Taiwan should pay us for defence," Donald Trump said in interview with Bloomberg Businessweek on June 25 but published on Tuesday
** The U.S. is Taiwan's most important international supporter and arms supplier, but there is no formal defence agreement and the U.S. is however bound by law to provide Taiwan with the means to defend itself
** There was no immediate reaction from Taiwan's government, nor TSMC
** Benchmark Taiwan SE weighted Index slips 0.3%
** TSMC's Taipei-listed shares have gained 76.2% YTD, U.S. stock up 78.9% YTD
($1 = 32.5980 Taiwan dollars)
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))
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