Taiwan shares end sharply up as TSMC closes at day's high - Focus Taiwan

The Taiwan stock market closed sharply higher on Wednesday, driven by strong gains in Taiwan Semiconductor Manufacturing Co. (TSMC), which reached a new intraday high. The rally was fueled by optimism... Read original →

TSMC’s intraday high reflects not market euphoria but the convergence of surging AI compute demand and successful 3nm/EUV yield ramp. This deepens its strategic lock-in with NVIDIA, pressuring Samsung to accelerate GAA transistor production—a new foundry arms race is underway. However, U.S. CHIPS Act 'guardrails' are inflating compliance costs for Taiwan, China-based fabs building in Arizona, while Japan’s expanded photoresist export controls threaten supply chain stability. Nanya’s sharp drop underscores a critical divergence: HBM demand cannot absorb legacy DRAM overcapacity. Over the next 12–24 months, if TSMC confirms 2nm mass production timelines at its investor conference, it will cement AI chip dominance—but geopolitical friction may compel clients to fast-track secondary suppliers in India and Vietnam, creating a long-term tension between technological centralization and manufacturing diversification.