Taiwan has overtaken India in total stock market value, driven largely by a strong rally in shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker.

According to data compiled by Bloomberg, Taiwan’s market capitalization reached $4.95 trillion as of Monday, surpassing India’s market value of $4.92 trillion, News.Az reports, citing Bloomberg.

Taiwan’s stock market is now ranked as the fifth largest globally, behind only the United States, mainland China, Japan, and Hong Kong.

Taiwan’s rise in global equity rankings has been fueled mainly by TSMC, which now makes up about 42% of the benchmark index, reflecting a high level of market concentration.

Shares of the chipmaker have surged 46% this year as the company continues to benefit from the artificial intelligence boom, where its semiconductors hold a dominant position in the global market.

The increase in Taiwan’s market value highlights the strong investor optimism surrounding artificial intelligence, which has triggered a worldwide rally in technology stocks. Manufacturing hubs such as Taiwan and South Korea have benefited significantly from this trend. Meanwhile, India is facing challenges including rising energy costs, slower corporate earnings growth, and a lack of companies directly tied to the expansion of AI infrastructure.

Taiwan’s benchmark Taiex Index fell 0.3% on Tuesday. Despite the decline, the index remains among the world’s best-performing stock gauges this year, having gained more than 50%. TSMC shares closed 1.7% lower.

Recent regulatory changes have also supported TSMC’s momentum. Last month, Taiwan’s financial regulator raised the limit on how much domestic funds can invest in a single stock. Under the new rules, funds focused exclusively on Taiwanese equities can now allocate up to 25% of their net assets to any listed company whose weighting exceeds 10% on the Taiwan Stock Exchange, compared with the previous limit of 10%. Currently, TSMC is the only company that meets the requirement.

JPMorgan Chase & Co. said in a research note that the regulatory change could attract more than $6 billion in additional inflows into TSMC shares.

News.Az 

By Nijat Babayev