Taiwan Semiconductor Manufacturing Co. (TSM) stock reached a record intraday high of NT$1,785. The Taiwan Stock Exchange also closed at a new peak. TSM's surge follows reports highlighting its ongoing international expansion, particularly in the U.S. TSM cites land constraints in Taiwan as a strategic necessity for this expansion. A new U.S.-Taiwan trade pact, aimed at securing the advanced chip supply chain, further influences this move.
Strong sentiment across the Taiwanese semiconductor industry buoys the positive momentum. Other Taiwanese foundries are raising prices for mature-node chips. Price increases range from 4% to 8%. Surging demand for components used in AI data centers drives these increases. Robust demand for foundational chips underscores the broad-based strength of the semiconductor market. This occurs even as TSM's most advanced chips receive the primary spotlight. TSM's U.S. ADRs also showed gains in premarket trading.