One company, three prices: TSMC mispricing echoes the 2000s dotcom bubble

A TSMC chip factory in Hsinchu, Taiwan: the chipmaker is effectively trading at three different prices. Photograph: Lam Yik Fei/The New York Times

Researcher and Acadian Asset Management portfolio manager Dr Owen Lamont notes that TSMC shares, which have doubled over the last year, cost 20 per cent more in the US than in Taiwan. One company, notes Lamont, but two different prices. However, Lamont says you don’t expect to see a 20 per cent mispricing in a company like TSMC, which is valued at over $1 trillion and is the 10th most valuable company in the world. Its premium has gone from zero to 20 per cent in the last two years, a mispricing he describes as “stupid, chaotic, and embarrassing”.Why more CEOs need to be on the shop floor

When you put TSMC “into an ADR wrapper and sell it in America, it’s worth more than in Taiwan”, says Lamont. “When you put it into a closed-end fund wrapper and sell it in America, it’s worth less than in Taiwan. One company, three prices.”

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