Shares of Taiwan Semiconductor Manufacturing Co. jumped 5% to a new all-time peak on Friday following the island’s regulatory announcement to ease restrictions on fund allocations to individual stocks.
According to the new guidelines, domestic equity funds and actively managed ETFs that focus solely on Taiwanese equities will be permitted to direct up to 25% of their assets to any listed company with a weight exceeding 10% on the Taiwan Stock Exchange.
A longstanding regulation had limited fund managers’ investments in a single enterprise to 10% of their portfolio’s net asset value.
TSMC, whose stock also reached a record high on Thursday, last week disclosed a 58% rise in first-quarter earnings, surpassing forecasts as the surge in artificial intelligence heightens demand for chips.
TSMC’s net profit of 572.48 billion new Taiwanese dollars for the quarter ending in March marked a fourth consecutive quarter of record earnings.
The firm stands as Asia’s most valuable tech company, producing semiconductors utilized in various devices ranging from consumer electronics to extensive data centers.
The globe’s largest contract chip manufacturer continues to experience strong demand for advanced chips from leading clients like Apple, while also gaining from the swift growth of AI, manufacturing cutting-edge processors designed by companies such as Nvidia — now its top customer.
