tsmc's wild ride: some shareholders cash out, but most are still holding
Taipei, Monday, 5 May 2025.
tsmc (2330) experienced a shareholder shift. 26,000 investors sold shares after the stock hit nt$957. These shareholders each made a maximum profit of nt$170,000 per share. Despite this, over 140,000 shareholders who bought during a tariff-related dip remain invested. This shows a strong belief in tsmc’s future. These shareholders are holding steady, even with market ups and downs. The recent activity reflects both short-term profit-taking and long-term confidence in the semiconductor giant.
Shareholder dynamics
The number of tsmc shareholders had previously climbed to a record high of 1.89 million on April 25 [1]. Data from the stock exchange indicates a decrease to 1,864,967 shareholders last week, marking a reduction of 26,020 shareholders [1]. A significant portion of those who sold, 17,445 investors, held less than one share [1]. Investors holding between one and five shares also participated in profit-taking, accounting for approximately 7,686 individuals [1].
Market reaction and ntd appreciation
On May 5, the Taiwan Stock Exchange index experienced a decline of over 400 points [6]. The New Taiwan dollar (ntd) saw a substantial increase on May 3, rising 3.07% to close at nt$31.064 against the us dollar [6]. This surge marks the largest single-day increase in the currency’s history [6]. Analyst Lu Xingzhi noted that the impact of the ntd appreciation on tsmc and the broader Taiwanese semiconductor industry would soon be assessed [6].
Currency impact on tsmc
Lu Xingzhi suggests that a stronger ntd could pressure tsmc to increase its cash dividend payouts [7]. This move would aim to distribute us dollar holdings to shareholders, mitigating the company’s exposure to currency fluctuations [7]. Lu Xingzhi views excess cash as unnecessary for tsmc, arguing that the company should focus on its core operations rather than holding large dollar assets [7]. He also pointed out that tsmc’s financial division has been investing in various us dollar-denominated assets [7].
Expert perspectives on tsmc’s cash strategy
Lu Xingzhi contrasts tsmc’s situation with that of berkshire hathaway, which strategically retains cash for investment opportunities [7]. He argues that tsmc, unlike berkshire hathaway, lacks expertise in investment and should distribute excess cash to shareholders [7]. He estimates that a 6% decline in the us dollar could lead to a nt$120 billion loss for tsmc, potentially offsetting the gains from interest income [7]. This perspective highlights concerns about tsmc’s management of its substantial us dollar holdings [7].
Broader market trends
The recent ntd appreciation has sparked concerns about its effects on taiwan’s export-oriented industries [6]. The machinery industry association is advocating for the ntd exchange rate to remain above nt$30 to the us dollar [8]. On May 5, unimicron, a pcb and semiconductor equipment manufacturer, saw its stock price fall to the daily limit, decreasing by nt$16 to nt$145.5 [6]. Conversely, tf, an asset stock, experienced its stock price rise to the daily limit at nt$20.35 [6].