TLDR
- Taiwan’s Financial Supervisory Commission increased the single-stock investment cap for domestic funds from 10% to 25%
- Taiwan Semiconductor is the sole company meeting the criteria, representing over 40% of Taiwan’s stock market capitalization
- TSMC shares in Taiwan surged 5% to an all-time high of NT$2,185
- The chipmaker introduced its A13 process node and revealed plans for an Arizona-based packaging plant opening in 2029
- American Depositary Receipts (TSM) increased 3.3% to $395.49 in premarket sessions, continuing to trade above local share values
Shares of Taiwan Semiconductor Manufacturing Company soared to unprecedented levels on Friday, propelled by a significant regulatory adjustment from Taiwan’s financial authorities alongside announcements concerning advanced chip technology and U.S. manufacturing expansion.
Taiwan’s financial watchdog increased the maximum allocation that domestic equity funds and actively managed exchange-traded funds can invest in any single listed security — rising from 10% to 25%. However, this new threshold exclusively applies to companies representing more than 10% of the Taiwan Stock Exchange’s total market capitalization.
Taiwan Semiconductor stands as the sole entity qualifying under these parameters. The semiconductor giant comprises more than 40% of Taiwan’s equity market value.
Taiwan Semiconductor Manufacturing Company Limited, TSM
TSMC shares traded in Taiwan rallied 5% to close at NT$2,185, marking a new record high.
The company’s U.S.-listed ADRs advanced 3.3% to $395.49 during Friday’s premarket session. Since each ADR represents five underlying shares, the implied valuation per individual share stands at approximately $79.10.
This figure remains elevated compared to the price paid by Taiwan-based investors. A longstanding valuation disparity has existed between TSMC’s domestic shares and its American Depositary Receipts, which typically command a premium due to greater accessibility for global investors. The recent regulatory modification could potentially narrow this differential in the coming months.
TSMC Introduces A13 Process Technology
The favorable regulatory development wasn’t the sole catalyst behind the stock’s rally. Earlier this week, TSMC introduced a next-generation chipmaking platform engineered to produce more compact, faster, and energy-efficient semiconductors.
The chipmaker’s A13 process node — approximately a 1.3-nanometer-class technology — represents an enhancement of its predecessor A14 platform. According to TSMC, the new technology provides roughly 6% greater transistor density and enhanced power efficiency, while maintaining backward compatibility with current chip architectures.
These advanced process nodes target artificial intelligence and high-performance computing sectors, markets where customer demand continues to show robust growth.
Arizona Packaging Facility Scheduled for 2029
TSMC additionally announced expanded U.S. production initiatives. The semiconductor manufacturer confirmed plans to establish an advanced chip packaging operation in Arizona, targeting a 2029 opening.
This facility will enable CoWoS packaging and three-dimensional chip integration — both essential technologies for the sophisticated processors powering artificial intelligence platforms.
Advanced packaging has emerged as a constraint within the AI supply chain, and the Arizona location is designed to alleviate this challenge while simultaneously strengthening TSMC’s American manufacturing capabilities.
Taiwan Semiconductor currently has wafer production plants under development in Arizona. Adding packaging infrastructure would establish a more comprehensive manufacturing ecosystem for the company within the United States.
TSMC’s American Depositary Receipts climbed 3.3% to $395.49 during Friday’s premarket trading session.
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