By 0104 GMT, the main TAIEX index fell 0.27 percent to 7,026.44 points, after closing down 3.55 percent in the previous session.
Electronics shares were down 0.31 percent, while financial shares were flat.
The Taiwan dollar weakened 0.6 percent to T$30.568.
Foreign investors were net sellers on Friday, bringing their total selling at T$81.952 billion this month.
Read the full story: www.reuters.com/article/2011/09/26/markets-taiwan-stocks-idUST8E7JM02O20110926