Taiwan's equity market has overtaken Canada's to become the world's sixth largest, driven by strong demand for artificial intelligence-linked shares and the rapid rise of chip giant Taiwan Semiconductor Manufacturing Co. (TSMC).
Market Capitalization Surge
The total market capitalization of Taiwan-listed companies has surged more than 35% this year to US$4.47 trillion, while Canada's has climbed about 5% to US$4.44 trillion, data compiled by Bloomberg show. TSMC, which makes up nearly 45% of the local equity benchmark, has seen its market value swell to US$1.8 trillion during the period.
Impact of Index Composition
The crossover highlights how index composition is shaping national equity fortunes. Taiwan's tech-heavy market has ridden a wave of global craze for semiconductors and AI, while Canada's resource- and finance-driven benchmark has delivered more modest returns amid volatile commodity prices and moderating economic growth.
This development underscores the growing influence of technology and AI on global financial markets, with Taiwan's semiconductor sector playing a pivotal role in its market ascent.
