TLDR
- Taiwan’s Financial Supervisory Commission increased the single-stock allocation cap for domestic funds from 10% to 25%
- Taiwan Semiconductor is the sole company meeting the eligibility criteria, representing over 40% of the Taiwan Stock Exchange’s value
- Shares listed in Taiwan climbed 5% to an all-time high of NT$2,185
- The semiconductor manufacturer introduced its advanced A13 process node and revealed plans for an Arizona packaging plant by 2029
- American Depositary Receipts (TSM) increased 3.3% to $395.49 during premarket hours, continuing to trade above local share prices
Taiwan Semiconductor Manufacturing Company’s domestically traded shares reached an unprecedented peak on Friday, propelled by a significant regulatory adjustment from Taiwan’s financial authorities alongside announcements regarding advanced semiconductor technology and U.S. manufacturing expansion.
The Financial Supervisory Commission of Taiwan increased the maximum allocation that domestic equity funds and actively managed exchange-traded funds can invest in any single listed company — raising the limit from 10% to 25%. However, this adjustment exclusively applies to companies representing more than 10% of the Taiwan Stock Exchange’s total capitalization.
Taiwan Semiconductor stands alone in meeting this threshold. The chipmaker’s market capitalization exceeds 40% of Taiwan’s entire stock market.
Taiwan Semiconductor Manufacturing Company Limited, TSM
Shares in Taipei surged 5% to close at NT$2,185, marking a new all-time high.
American Depositary Receipts traded in the United States rose 3.3% to $395.49 during Friday’s premarket session. Since each ADR represents five local shares, this translates to approximately $79.10 per individual share.
This valuation remains above what investors in Taiwan are paying. A longstanding pricing disparity has existed between Taiwan Semiconductor’s domestic shares and its ADRs, with the latter typically commanding a premium due to greater accessibility for global investors. The recent regulatory modification could potentially reduce this valuation gap going forward.
TSMC Unveils A13 Chip Node
The favorable regulatory development wasn’t the sole catalyst behind the stock’s advance. Earlier this week, TSMC announced a next-generation chipmaking technology designed to create more compact, faster, and energy-efficient semiconductors.
The manufacturer’s A13 node — approximately a 1.3-nanometre-class manufacturing process — represents an evolution of its A14 technology. According to the company, it provides roughly 6% greater transistor density and enhanced power efficiency, while maintaining compatibility with current chip architectures.
These advanced manufacturing nodes target cutting-edge artificial intelligence and high-performance computing sectors, markets where demand from key clients continues to be robust.
Arizona Packaging Plant Planned for 2029
TSMC additionally detailed new American manufacturing initiatives. The semiconductor giant announced intentions to establish an advanced chip packaging facility in Arizona, targeting completion by 2029.
This facility will provide CoWoS packaging capabilities and 3D chip integration — essential technologies for the sophisticated processors powering artificial intelligence applications.
Advanced packaging has emerged as a constraint in the AI hardware supply chain, and the Arizona location is strategically positioned to alleviate this bottleneck while simultaneously strengthening Taiwan Semiconductor’s American operations.
The company currently has wafer production facilities under development in Arizona. Adding packaging operations would create a more comprehensive manufacturing ecosystem in the United States.
Taiwan Semiconductor’s American Depositary Receipts advanced 3.3% to $395.49 in Friday’s premarket session.
