The VanEck Semiconductor ETF (SMH) surged 5% on Thursday, outperforming the broader market, as one of its key holdings, Taiwan Semiconductor Manufacturing Co (TSM), rallied on positive developments.

Taiwan Semiconductor, a major player in the semiconductor industry, announced a leadership change, promoting Rose Castanares as the new president, effective October 1st. The move reflects the company's preparations for continued growth and expansion.

Additionally, the U.S. Federal Reserve's decision to cut interest rates by 50 basis points was viewed as a positive catalyst for semiconductor companies like TSM. Lower borrowing costs could spur increased spending from companies and stimulate demand for semiconductor products.