Taiwan Semiconductor Manufacturing Co. (TSMC) has seen its US-listed shares trading at nearly a 25% premium over its Taipei-listed counterparts as of last week, signaling strong interest from global investors keen on riding the AI-driven market surge.
The American depositary receipts (ADRs) of TSMC have traditionally commanded a higher price than its shares in Taiwan, primarily due to easier access for international investors and inclusion in major indices. However, last Friday’s 24.6% premium was the largest since October 17, significantly exceeding this quarter’s average of 19%, based on Bloomberg data.
The disparity widened as TSMC’s shares experienced differing trends in their respective markets. On Friday, the Taipei-listed shares dropped 3.3%, mirroring a cautious trading session across Asia. By contrast, investor sentiment improved by the time US markets opened, boosting semiconductor stocks and pushing TSMC’s ADRs up by 1.3%.
By Monday morning, TSMC’s local shares rallied up to 4.4%, narrowing the premium to under 20%. However, this may shift once US trading resumes.