By Yifan Wang

Shares of Taiwan Semiconductor Manufacturing Co. soared to a new record Monday, pushing the island's benchmark Taiex above its 1990 closing high.

TSMC shares ended 10% higher at 424.50 New Taiwan dollars, as the chip maker extended its rally since late June.

The share-price jump came after U.S. tech giant Intel Corp. said last week that it is delaying the launch of its next generation of 7-nanometer chips. Intel also signaled it might consider outsourcing the manufacturing of its chips.

TSMC is viewed as the most likely candidate for such a business from Intel, given its significant technological advantage over rivals.

The widening gap between TSMC's technological leadership in the chip-making industry and other competitors could eventually drive most, if not all, CPU manufacturing--a market expected to be worth more than US$20 billion in 2025--to the Taiwanese company, Citibank said in a research note.

The Taiex ended 2.3% higher at 12588.30, surpassing its previous closing record of 12495.30 in February 1990. 



  Write to Yifan Wang at yifan.wang@wsj.com