TSMC Stock Surges to Record High on Advanced Manufacturing and Regulatory Clarity

Taiwan Semiconductor Manufacturing Company (TSMC) shares have opened 2026 by climbing to an unprecedented peak. The semiconductor foundry’s stock closed at $319.93 on the New York Stock Exchange this Friday, propelled by two major developments: the official commencement of its most advanced chip production and a favorable U.S. regulatory decision that alleviates a key operational concern.

Market analysts project revenue growth of approximately 21% for TSMC in 2026. This bullish outlook is primarily driven by unrelenting demand for artificial intelligence hardware. A significant catalyst is Nvidia’s forthcoming Rubin architecture, scheduled for production on TSMC’s 3nm process next year. Investors are anticipating more concrete details on the scaling of the company’s latest manufacturing capacity during TSMC’s investor conference on January 15.

The equity is currently trading about 50% above its 200-day moving average. On the Taipei exchange, shares reached a historic high of TWD $1,585. TSMC’s total market valuation now exceeds $1.6 trillion.

2nm Mass Production Commences with Strong Yields

In a move that solidifies its technological leadership, TSMC has officially initiated high-volume manufacturing of 2-nanometer chips. Production is underway at its Fab 22 facility in Kaohsiung and its Fab 20 site in Hsinchu. A critical early success is the reported initial yield rate, which has surpassed expectations. Higher yields at this initial stage are a vital determinant of future profitability for the new node.

This advancement positions TSMC ahead of rivals Samsung and Intel. The 2nm process is currently the most sophisticated available technology for manufacturing logic chips and is essential for producing next-generation AI accelerators for clients such as Nvidia and Apple.

Should investors sell immediately? Or is it worth buying TSMC?

Industry researchers expect the company to leverage its pricing power, forecasting increases between 3% and 10% across various manufacturing nodes in 2026. This pricing strategy is intended to maintain TSMC’s gross margin firmly above 60%.

U.S. Grants Export License for China Facility

A significant source of uncertainty has been resolved. The U.S. Department of Commerce has granted TSMC a one-year export license for its fabrication plant in Nanjing. This authorization replaces an expired "Validated End User" status and permits the import of U.S. manufacturing equipment without requiring individual approvals for each transaction.

The Nanjing facility focuses on more mature 16nm and 28nm technologies. The license provides stability for TSMC’s supply chain and secures revenue from the Chinese market, despite ongoing geopolitical tensions.

Operations Unaffected by Major Earthquake

TSMC’s manufacturing operations continued without delay following a powerful magnitude 7.0 earthquake off Taiwan’s northeastern coast. While brief evacuations were conducted in parts of the Hsinchu Science Park, subsequent inspections confirmed there were no structural damages and no impact on the sophisticated fabrication tools. Production resumed its normal schedule without interruption.