DeepSeek V4 Implications and TSM ADR Premium

This report analyzes the impact of the DeepSeek V4 model release on China's internet sector and the flow implications of Taiwan's relaxed single-stock weighting caps for TSMC.

Key Takeaways

• 1.The DeepSeek V4 launch trails state-of-the-art models by 3-6 months but supports the bull case for Data Center providers due to compute constraints.
• 2.Taiwan's FSC has increased the single-stock weighting cap for domestic active funds from 10% to 25%, likely driving significant inflows into TSMC.
• 3.TSM ADR premiums are normalizing toward a 15-25% range after previously reaching 20-30%.

Table of Contents

• Not the Same Type of DeepSeek Moment... V4 Model Launch Implications | GIR View
• TSM ADR Premium & Local Fund Weighting Cap | GIR Strategy View

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