Taiwan Moves to Curb Short Selling After TAIEX Suffers Worst Week Since 2001

TSMC shares rose 6% after reports that Nvidia requested it explore manufacturing advanced 3D DRAM memory chips, potentially expanding TSMC's role in AI hardware. TSMC is already a key supplier for Nvidia's AI processors. The move could make TSMC a competitor to Samsung, SK Hynix, and Micron in the DRAM market, according to sources.

TSMC is considering expanding into advanced memory chip production, specifically 3D DRAM, to capture a larger share of the AI hardware market. The move follows a request from Nvidia, its largest customer, and could involve building new factories or acquiring an existing plant. The company has not confirmed plans or timelines. This potential expansion comes amid an AI-driven memory chip shortage that has increased prices and supply demand.

TSMC's US shares rose 6% after reports it may produce 3D DRAM memory chips for Nvidia, entering a market led by Samsung, SK Hynix, and Micron. TSMC confirmed no timeline, focusing on its core foundry business. The move could address AI hardware supply chain bottlenecks, but memory markets are cyclical.

Taiwan and South Korea intervened to stabilize their markets amid a global AI sector selloff. Taiwan imposed short-selling curbs and readied a $15B fund, while South Korea suspended margin calls. Both markets saw significant declines, with Taiwan's Taiex and South Korea's Kospi dropping 4.5% and 6%, respectively. Foreign selling was a major factor in both markets. TSMC, a key Taiwanese semiconductor company, fell 4.7%.

Taiwan Semiconductor (TSM) shares rose 7.45% to $379.41 after Taiwan's Financial Supervisory Commission limited short selling. New rules cap intraday short-sell orders at 3% of 30-day average daily volume, up from 30%, and raise the minimum short-sale margin to 130% from 90%. A NT$500 billion stabilization fund is also available. TSMC's ADR had dropped to $353.10 on Thursday. The Taiex fell as much as 9% on Friday, and TSMC's Taipei shares fell about 8.5%.

Taiwan Semiconductor Manufacturing (TSMC) shares rose 5% after a report it may produce 3D DRAM memory chips for Nvidia. TSMC's forward P/E is below its five-year average, and analysts expect its EPS to nearly triple from 2025 to 2028. The move could compete with SK hynix, Samsung, and Micron in a volatile market.