Taiwan Semiconductor Manufacturing Company Ltd (TSMC), the world’s leading semiconductor manufacturer, begins 2026 poised for continued growth boosted by a critical U.S. export license approval and solid market momentum. The company's shares strengthened following the grant of a one-year export license by the U.S. Department of Commerce, permitting TSMC to maintain uninterrupted imports of American chipmaking equipment for its fabrication facility in Nanjing, China.
This annual license eliminates the need to obtain individual approvals from each U.S. vendor, allowing a streamlined process for the delivery of U.S.-controlled tools integral to TSMC’s manufacturing operations. The authorization is expected to facilitate consistent production activities and ensure reliable delivery of semiconductor products, which is crucial for meeting global demand and sustaining market confidence.
TSMC’s stock performance reflects this positive development, having risen approximately 51% over the past 12 months in U.S. trading venues. The favorable investor sentiment is further exemplified as Taiwan’s stock market itself recorded a milestone start to the year. The Taiex index surged by 386.21 points, or 1.33%, closing at a historic high of 29,349.81 points on the first trading day of 2026.
The market's robust performance was underpinned by enthusiastic buying across technology stocks, particularly those linked to artificial intelligence advancements, with TSMC at the forefront. Trading volume increased significantly, registering a turnover of NT$648.84 billion (approximately $20.66 billion), signaling broad and active participation from investors in major cap technology shares.
Analysts attribute part of this inflow to the return of foreign institutional investors who had been absent during the holiday period. The strengthening Taiwan dollar has successfully motivated these investors to reallocate capital toward Taiwanese equities, with TSMC emerging as the primary target. According to Concord Securities analyst Kerry Huang, overseas investors have notably rebuilt positions in TSMC anticipating encouraging updates at the company’s forthcoming investor conference scheduled for January 15.
TSMC’s dominant position in the Taiwanese stock market is underscored by its representation of more than 40% of the market’s total capitalization. This concentration further highlights the company's pivotal role in Taiwan’s equity landscape and the semiconductor industry worldwide.
On the day of reporting, TSMC shares traded at approximately $312.50, marking a 2.83% increase in trading value based on Benzinga Pro data. This share price momentum reflects strong investor appetite driven by both operational assurances from the U.S. export license and broader market enthusiasm for technology firms engaged in artificial intelligence applications.
The combination of regulatory facilitation, investor optimism, and a healthy domestic currency positions TSMC favorably as it navigates the evolving semiconductor and AI infrastructure landscapes in 2026.
Key Points
- TSMC secured a one-year U.S. export license allowing continuous import of American chipmaking equipment for its Nanjing plant.
- License streamlines equipment imports by removing the need for individual vendor approvals, supporting manufacturing stability.
- Taiwan’s stock market opened 2026 at a record high, driven by strong demand in AI-related technology stocks led by TSMC.
- Foreign institutional investors have resumed buying Taiwanese equities, attracted by a strong Taiwan dollar and TSMC's strategic outlook ahead of its January 15 investor conference.
Risks and Uncertainties
- The one-year duration of the export license introduces uncertainty regarding future operational permissions for TSMC’s China facilities beyond that period.
- Dependence on U.S. chipmaking equipment imports exposes TSMC to potential regulatory changes or diplomatic tensions that could affect supply chains.
- Fluctuations in foreign investor appetite or Taiwan dollar strength may impact capital flows and equity market performance.