Taiwan Regulatory Shift Sparks Record Surge for TSMC

Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) climbed to record levels after the nation's financial regulator relaxed restrictions on the amount of a single stock that investment funds are permitted to hold. The policy shift is intended to increase market liquidity and attract greater institutional participation in Taiwan's equity markets. The regulatory easing specifically benefits high-weight assets like TSMC, the world's largest contract chipmaker. According to analysis from JPMorgan Chase & Co., the change in limits could potentially draw more than $6 billion in new capital inflows into the stock. Market reaction was immediate, with TSMC shares gaining as much as 4.8% to reach a new record high. This momentum extended to the broader market, as the benchmark index rose as much as 3.2%, marking it as the best-performing market across Asia during the session. Analysts view the move as a significant catalyst for institutional investors who were previously constrained by concentration limits. By removing these barriers, the regulator has effectively opened the door for larger positions in the semiconductor leader, coinciding with strong global demand for AI-driven hardware.