tsmc's rise fuels life insurance profits: a closer look
taipei, Monday, 24 March 2025.
Taiwan Semiconductor Manufacturing’s (tsmc) stock surge has significantly boosted the investment portfolios of major life insurance companies. Cathay Life Insurance, Nan Shan, Shin Kong, and KGI reported substantial unrealized profits from their tsmc holdings. Cathay Life Insurance alone saw unrealized profits of over 13 billion new taiwan dollars. This financial windfall underscores the impact of tsmc’s performance on the broader financial sector.
insurance firms benefit from tsmc’s surge
Cathay Life Insurance held approximately 83,600 tsmc shares at the end of last year [1]. The cost of these shares was about 76.6 billion new taiwan dollars, averaging 915 new taiwan dollars per share [1]. By the end of the year, the market value of these holdings reached 89.9 billion new taiwan dollars, resulting in unrealized profits of 13.3 billion new taiwan dollars for Cathay Life Insurance [1]. KGI Life Insurance also experienced substantial gains, with unrealized profits exceeding 13.1 billion new taiwan dollars [1].
broader market impact and tsmc’s expansion
The positive sentiment surrounding tsmc is contributing to overall market gains [3]. Taiwan’s stock market opened higher today, mirroring gains in the U.S. markets [3]. The taiex index increased by 139.28 points, reaching 22,348.38 [3]. Tsmc’s stock specifically rose by 15 new taiwan dollars, hitting 987 new taiwan dollars, spurred by the upcoming 2-nanometer expansion ceremony in kaohsiung [3]. This expansion is slated for the end of the month [3].
manufacturing advancements and geopolitical considerations
Tsmc’s advancements in 2-nanometer technology are progressing, with the first batch of 2-nanometer wafers expected to be shared in late April [3]. The company anticipates opening reservations for the second-half production schedule on April 1 [3]. Amid these advancements, geopolitical factors are influencing strategic decisions within the semiconductor industry [2]. Nvidia, a key tsmc client, is reportedly considering shifting some of its Blackwell chip production from Taiwan to the United States, driven by geopolitical tensions and U.S. government incentives [2].
market dynamics and expert opinions
The market’s focus is attuned to several factors, including U.S. President Trump’s tariff policies and the federal open market committee (fomc) meeting [3]. Last week, the three major U.S. stock indices closed positively, though the philadelphia semiconductor index experienced a decline due to Micron’s stock falling by 8% [3]. Despite these fluctuations, the positive performance of tsmc stock reflects confidence in the company’s market leadership and technological advancements [1][3].