Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) shares opened more than 3% higher on Thursday, reaching an intraday gain of up to 8% before settling to a rise of 6% at the time of writing.

The surge comes amid reports that the world's leading chipmaker is developing a product similar to Intel's advanced chip packaging technology, signaling concerns about competition from its rival. Chip packaging, the final stage of semiconductor production, involves assembling different silicon pieces into a single unit and wiring them to function as a whole while connecting to other computer components.

According to two sources familiar with the matter, engineers at Taiwan Semiconductor Manufacturing have internally dubbed this advanced packaging project "EMIB-like" and have already discussed the initiative with some customers.