The main TAIEX index .TWII fell 88.46 points to 7,927.55, after opening up 0.16. LCD makers were among the biggest losers, ending 2.18 percent lower.
Electronics shares .TEI lost 1.1 percent, with HTC down 3.39 percent. Hon Hai Precision Industry (2317.TW) shed 0.99 percent after reporting a 55 percent rise in February sales.
Financial shares .TELI were down 0.97 percent.
The Taiwan dollar was down by T$0.002 to trade at T$29.506.
Foreign investors were net buyers on Friday, picking up T$2.45 billion.
(Reporting by Clare Jim)