TSMC accounts for over 10% of Taiex turnover Tuesday

Taipei, Feb. 24 (CNA) Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) was a driver of significant gains on the local main board Tuesday, accounting for more than 10 percent of the market's total turnover of NT$861.81 billion (US$27.39 billion), according to data compiled by the Taiwan Stock Exchange (TWSE).

On Tuesday, TSMC, which represented 45.05 percent of total market value, rose 3.42 percent to close at a record high of NT$1,965.00, although the stock came off a historic high of NT$1,975.00.

The turnover of TSMC shares hit NT$86.41 billion, 10.02 percent of the total on the main board, where the Taiex, the benchmark of the Taiwan Stock Exchange, soared 927.56 points, or 2.75 percent, to end at a new high of 34,700.82, the data showed. The stock contributed more than 500 points to the Taiex's rise.

Market analysts said the strong interest in TSMC came as many investors remain upbeat about the current AI boom, with the company providing high-end chips for AI applications, prompting investors to shrug off losses suffered on U.S. markets overnight amid concerns over the White House tariff policies.

As a result, foreign institutional investors bought a net 6.89 million TSMC shares, ending two consecutive sessions of net sales. In addition, local investment trust firms also bought a net 1.49 million TSMC shares, marking the 13th straight session of net purchases.

In addition to institutional investors, retail investors also rushed to pick up TSMC with the value of odd-lot trading reaching NT$3.74 billion, the largest amount among stocks on the main board.

Odd-lot trading typically makes it easier for retail investors to buy high-priced stocks such as TSMC in quantities of less than 1,000 shares.

Due to its strong showing, TSMC's market capitalization hit a new high of NT$50.95 trillion, helping the Taiex reach another market cap record of NT$113.1 trillion.

In January, the world's largest contract chipmaker booked NT$401.26 billion in consolidated sales, a historic monthly high for the company, up 36.8 percent year-on-year and 19.8 percent from December.

The strong January sales reflected robust demand for chips produced using TSMC's advanced 3-nanometer process, which are widely used in AI accelerators, analysts said.

Citing strong AI demand and its technological lead in advanced manufacturing, TSMC has forecast revenue growth of close to 30 percent in U.S. dollar terms for 2026, far outpacing the 14 percent growth expected for the global pure-play wafer foundry market.