Taiwan Semiconductor Manufacturing Company (TSMC) may lose its status as Asia’s largest company by market value to Tencent Holding, driven by growing investor interest in Tencent’s AI projects.

TSMC shares have fallen 11% in 2025 amid a global chip stock downturn, while Tencent’s stock is up 30%, narrowing their market cap gap to US$109 billion.

Despite being below its 2021 peak, Tencent has outperformed other Chinese tech firms facing regulatory challenges and plans to increase AI spending.

TSMC has seen reduced foreign investment, with global funds selling US$5.8 billion worth of shares since Feb. 24.

As of Mar. 19, foreign ownership in TSMC dropped to 72.7%, the lowest since late 2023.