Taiwan has surpassed India in terms of stock market value (market cap). The massive surge in shares of ‘Taiwan Semiconductor Manufacturing Company’ (TSMC), the world’s largest chipmaker, in the era of Artificial Intelligence (AI) has given Taiwan this lead. According to Bloomberg, as of Monday, Taiwan’s market cap reached $4.95 trillion (approximately ₹415 lakh crore), while India’s value fell to $4.92 trillion (approximately ₹413 lakh crore).
Now, Taiwan’s name has been included among the world’s top-5 stock markets, after the US, China, Japan, and Hong Kong. Chip Company Behind Taiwan’s Victory The biggest reason for this leap in Taiwan’s stock market is the TSMC company. This single company holds a 42% share in Taiwan’s main index.
So far this year, the company’s shares have registered a 49% increase. This company dominates the supply of semiconductors (chips) used for AI technology worldwide, which is benefiting Taiwan’s market. New Rules Boost Taiwan Recently, Taiwan’s regulator has relaxed investment rules. Now, domestic funds can invest up to 25% of their net assets in a single large company; previously, this limit was only 10%. Currently, only TSMC meets this criterion.
According to JP Morgan, this change could bring an additional $6 billion (approximately 50,000 crore rupees) in investment to Taiwan’s market. Foreign Investors Withdrew ₹2 Lakh Crore from India This year has been challenging for the Indian stock market. So far this year, foreign investors have withdrawn about $24 billion (approximately ₹2 lakh crore) from the Indian market.
The main reasons for this have been the high valuation of Indian shares and the weakness of the rupee. In contrast, investors are putting money into markets like Taiwan and South Korea, which are directly linked to AI hardware and manufacturing. Indian Market Lagged Due to These 3 Reasons India is still far ahead in terms of economy Even though Taiwan may have surpassed India in stock market value, India’s dominance in the overall size of the economy (GDP) remains intact.
According to IMF estimates, India’s economy is 4.15 trillion dollars, while Taiwan’s GDP is merely 977 billion dollars. India remains one of the world’s fastest-growing major economies. What is Market Cap? The ‘market capitalization’ of any country’s stock market refers to the total value of shares of all listed companies there. If a country’s market cap is increasing, it means that investor confidence in the companies there is growing.
