The share price of Taiwan Semiconductor Manufacturing Co. (TSMC) rose to a new high on Friday, gaining more than 5% to trade at NT$ 2,190 a piece. The surge came after a report of regulatory changes that ease restrictions on how much domestic funds can invest in single stocks.
Taiwan’s Financial Supervisory Commission announced that domestic equity funds and actively managed ETFs which focus solely on Taiwanese equities may now allocate up to 25% of their portfolios to any listed company representing more than 10% of the Taiwan Stock Exchange’s weighting. TSMC, as the only firm currently qualifying under these new criteria, stands to benefit the most from this regulatory shift. Apparently, the policy update prompted strong buying interest in TSMC, reinforcing its position as a dominant force in Taiwan’s equity market.
TSMC’s share price continued its rally after a strong quarterly earnings report last week, which showed a 58% increase in first-quarter profit, supported by robust demand for semiconductors driven by artificial intelligence applications.
For the first quarter ending in March, TSMC reported net profit of NT$572.48 billion, surpassing LSEG analyst consensus projections of NT$543.32 billion. Revenue totaled NT$1.134 trillion, also ahead of the NT$1.127 trillion market estimate and reflecting a 35% year-over-year increase, according to figures released previously.
Demand for cutting-edge chips remains robust, as TSMC supplies major technology companies, including Apple and Nvidia. AI-related orders, particularly those connected to advanced processors designed by Nvidia—the company’s largest customer—supported the quarter’s gains.
TSMC holds a market capitalization of NT$54.08 trillion, constituting over 40% of the total value of the Taiwan equity market.
The surge in TSMC shares contributed to a 2.7% advance in the TAIEX index, making it the strongest performer among Asian benchmarks on Friday. This outperformance occurred despite ongoing geopolitical tensions in the Middle East and persistently high energy prices.
According to the regulator, the revised investment limits are designed to give investment funds greater flexibility, acknowledging the rapid expansion of the technology sector and the growing size of leading companies on the exchange.
