The main TAIEX index dipped 0.73 points to 7,071.35. In 2011, it shed 21 percent in its worst yearly performance since 2008.

TSMC , the world's top contact chip maker, slipped 0.92 percent, weighing on electronics, which fell 0.22 percent. Financials slipped 0.15 percent.

Taiwan holds presidential elections on Jan 14 in a vote that will determine whether the island deepens economic integration with mainland China or embarks on a period of more tense and possibly fractious cross-Strait relations. Please double click for full coverage.

The Taiwan dollar weakened slightly to trade at T$30.298.

Foreign investors were net buyers on Friday, bringing their total buying to T$39.38 billion in December.