Intensifying Chinese pressure on Taiwan is prompting some equity investors to buck the trend and exit Taiwan Semiconductor Manufacturing Co.

Martin Currie¡¯s Zehrid Osmani began winding down his TSMC position early last year and was fully divested by May. Shelton Capital Management¡¯s Bruce Kahn started selling TSMC shares last October and eliminated his stake by January, while Sydney-based hedge fund Plato Investment Management said it¡¯s ¡°nervous¡± about the world¡¯s largest foundry business.

At the same time, Martin Currie and Plato are among those finding an alternative in ASML, a crucial TSMC supplier.