TSMC charm? Taiwan overtakes Canada to become 6th largest stock market amid AI boom

Taiwan’s stock market has moved past Canada’s to become the world’s sixth largest, aided by strong investor demand for artificial intelligence-related stocks and the sharp rise in shares of Taiwan Semiconductor Manufacturing Co. (TSMC).

Data compiled by Bloomberg show the total market capitalization of Taiwan-listed companies jumped over 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 makeup 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 toward 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, while revenue increased 35% to NT$1,134.1 billion. In January, the company said it would accelerate capital spending to meet rising AI demand, as customers continue to face supply shortages.

TSMC shares have also been supported by 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 solely on Taiwanese stocks will be allowed to allocate up to 25% of their assets to any listed company with 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 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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