In a notable move, Terry Smith's Fundsmith disclosed a new stake in Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker. According to its quarterly 13F filing, which reflects holdings as of June 30, 2026, the firm acquired 1.15 million shares valued at approximately $548.46 million. The new position immediately constitutes a significant 4.02% of Fundsmith's reported portfolio.
The investment is part of a broader increase in portfolio turnover for Fundsmith in 2026. [6, 7] Smith has noted TSMC's dominance, pointing out it manufactures about 90% of the world's most advanced semiconductors. [6, 7] He believes this position is protected by the immense capital required—an estimated $20 billion—to build a single advanced factory, creating a formidable barrier to entry for competitors. [6, 7]