Data compiled by Bloomberg show the total market capitalisation of Taiwan-listed companies has jumped more than 35% this year to $4.47 trillion. In comparison, Canada’s market has risen about 5% to $4.44 trillion.
TSMC, which accounts for nearly 45% of Taiwan’s benchmark index, has seen its market value climb to a staggering $1.8 trillion during the same period.
The shift highlights how the composition of stock markets is influencing national rankings. Taiwan’s technology-focused market has benefited from the global surge in demand for semiconductors and AI-linked companies.
Canada’s market, which is more heavily weighted towards resources and financials, has posted relatively modest gains amid fluctuating commodity prices and slowing economic growth.
Earlier this month, TSMC, the world’s largest contract chipmaker, reported record first-quarter earnings. Net income rose 58% year-on-year to NT$572.5 billion ($18 billion), beating analyst estimates. Revenue increased 35% to NT$1,134.1 billion. In January, the company said it would speed up capital spending to meet rising AI demand, as customers continue to face supply shortages.
TSMC shares have also received support from a regulatory change after Taiwan’s market watchdog said it plans to ease limits on how much funds can invest in a single stock.Under the revised rules, domestic equity funds and actively managed ETFs focused only on Taiwanese stocks will be allowed to allocate up to 25% of their assets to any listed company that has a weighting above 10% on the Taiwan Stock Exchange.
Previously, fund managers were restricted to investing a maximum of 10% of a portfolio’s net asset value in a single company.
The world’s largest contract chipmaker continues to benefit from strong demand for advanced chips from major customers such as Apple, while also gaining from the rapid growth of artificial intelligence by producing high-end processors designed by companies like Nvidia, now its biggest client.
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