Taiwan’s stock market value has reached US$4.95 trillion, overtaking India’s US$4.92 trillion and making it the fifth largest in the world by market capitalization.

The gain was driven largely by Taiwan Semiconductor Manufacturing Co. (TSMC), the Taiwan-based contract chipmaker and the world’s largest semiconductor foundry.

TSMC’s shares have rallied 49% this year and now account for more than 42% of Taiwan’s main stock index.

The concentration could deepen after a rule change that allows Taiwan-focused mutual funds and actively managed exchange-traded funds (ETFs) to invest up to 25% of their net assets in stocks with index weightings above 10%, up from the previous 10% limit.

JPMorgan said the change could bring more than US$6 billion of inflows into Taiwan’s market.

TSMC’s rally has also been supported by its business performance. The chipmaker raised its outlook after its March-quarter profit rose 58% as AI demand lifted revenue.

🔗 Source: Bloomberg

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