TSM
Taiwan’s market is basically one big TSMC group project
Taiwan’s stock market has climbed to $4.95 trillion, nudging past India’s $4.92 trillion and becoming the world’s fifth-largest equity market. And if you’re wondering who’s doing the heavy lifting: yep, it’s Taiwan Semiconductor, which now makes up about 42% of the benchmark index. That’s not a stock. That’s a shadow economy with a ticker.
The AI money hose is still wide open
TSMC shares are up 49% this year as investors keep tossing cash at anything connected to AI infrastructure. The logic is simple: if the world keeps building data centers like it’s a never-ending Minecraft session, someone has to make the chips. TSMC is still the adult in the room, and analysts say that dominance is only getting stronger.
A new rule that smells like more inflows
Taiwan’s financial regulator just changed the playbook for domestic funds, raising the single-stock investment cap from 10% to 25% when a company accounts for more than 10% of an index. Translation: rules that used to keep fund managers from getting too cozy with one giant stock just loosened up, and TSMC is the only company that currently qualifies.
That’s a big deal because:
- JPMorgan thinks the change could pull in more than $6 billion in fresh inflows.
- Other analysts have floated even bigger numbers, with one estimate calling for $30 billion to $40 billion.
- The flip side? Taiwan’s market may get even more concentrated around TSMC, which is great until you remember concentration cuts both ways.
Big picture
TSMC already had the AI crown. Now it’s getting a policy assist too. For investors, that means the stock’s dominance isn’t just about chip demand anymore — it’s baked into Taiwan’s market structure itself.