TSMC shares jump to record high as Taiwan eases single-stock investment caps for funds

Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a remarkable 5% increase, reaching a record high on Friday. This surge follows the announcement from Taiwan's financial regulator regarding a relaxation of restrictions on fund allocations to individual stocks. The updated guidelines permit domestic equity funds and actively managed exchange-traded funds (ETFs) that focus solely on Taiwanese companies to invest up to 25% of their assets in any listed firm whose weight exceeds 10% on the Taiwan Stock Exchange. Previously, fund managers were limited to allocating just 10% of their portfolios’ net asset value to a single company. This news comes on the heels of TSMC's impressive financial performance, where the company reported a staggering 58% rise in first-quarter profits, outperforming market expectations. The company's net income for the three months ending in March reached 572.48 billion new Taiwanese dollars, marking its fourth consecutive quarter of record profits. As Asia's most valuable technology firm, TSMC plays a pivotal role in semiconductor production, supplying chips that power everything from everyday consumer gadgets to extensive data centers. The demand for TSMC's advanced chips remains robust, bolstered by significant clients like Apple and the explosive growth of artificial intelligence. The company is also committed to manufacturing high-performance processors designed by firms such as Nvidia, which has now become its largest customer.