TSMC Boosts Taiwan's Market Value to Surpass India, Taiwan Ranks as the 5th Largest Stock Market Globally

According to Bloomberg, as of Monday, the total market value of Taiwan's stock market has risen to $4.95 trillion, surpassing India's $4.92 trillion, becoming the world's fifth-largest stock market, just behind the United States, Mainland China, Japan, and Hong Kong.

This ranking change is mainly driven by TSMC. As the world's largest chip foundry company, TSMC's stock price has accumulated an increase of 49% this year, and its weight in the Taiwan Weighted Index has exceeded 42%, highlighting a significant increase in the concentration of Taiwan's stock market on a single tech giant.

Bloomberg points out that the rise in Taiwan's market value and the decline in India's market value clearly reflect the two main lines of the global financial market in 2026: the first is that the war in Iran has driven up international oil prices, and the economic growth prospects of energy-importing countries like India are under pressure; the second is that the sustained optimism surrounding AI continues to push up global tech stocks, and tech hardware manufacturing centers like Taiwan and South Korea have thus obtained more direct capital inflows.

Franklin Templeton fund manager Yi Ping Liao attributes Taiwan's market value surpassing to its high concentration in the tech hardware sector. She said:

"The rise in Taiwan's market value essentially reflects its high concentration in tech hardware, which is at the core of the AI investment cycle. Markets with limited tech hardware exposure are gradually being surpassed by markets with higher weights like Taiwan and South Korea."

Regulatory policy adjustments have also provided additional support for TSMC. Taiwan's financial regulatory authority relaxed the ceiling for domestic funds to invest in a single stock last month: funds specifically investing in Taiwan stocks can invest up to 25% of their net assets in a company when the weight of a listed company exceeds 10%, higher than the previous 10% limit.

This condition is currently met only by TSMC. J.P. Morgan research report estimates that this adjustment is expected to attract more than $6 billion of capital inflows into Taiwan's stock market.

Although Taiwan's stock market value has surpassed India's, India's economic volume is still significantly larger. According to International Monetary Fund data, India's economic scale reaches $4.15 trillion, far higher than Taiwan's GDP of $977 billion.