Investors diversify away from TSMC amid AI hardware demand broadening

Source:Business Times

02 — Who / Subject

TSMC, MediaTek, Samsung Electronics

03 — Where / Locus

Taiwan, South Korea

04 — When / Temporality

May 22, 2026

Verified: May 22, 2026

05 — Why / Core Summary

"TSMC shares are underperforming compared to MediaTek and Samsung as AI demand shifts to inference and broader hardware. Investment caps on single stocks are forcing funds to diversify holdings beyond TSMC. TSMC now accounts for over 40% of Taiwan's Taiex index, prompting institutional rebalancing."

Conflict Analysis

Market analysis of shifting investment trends in the semiconductor sector due to AI-driven diversification.

Recommended Background Resource

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Chip War: The Fight for the World's Most Critical Technology

Author: Chris Miller

This book provides the definitive geopolitical and economic history of the semiconductor industry, explaining why TSMC became the central pillar of global AI hardware and why the current shift toward diversification is a critical turning point for global supply chains.

Explore Background Book (Amazon)

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