Taiwan has overtaken India to become the world’s fifth largest stock market by market capitalization, according to Bloomberg data, after a sharp rally in technology stocks led by Taiwan Semiconductor Manufacturing Company (TSMC).
Taiwan’s total stock market capitalization climbed to nearly $4.95 trillion as of Monday, edging past India’s market value of $4.92 trillion. The development pushed Taiwan ahead of India in the global rankings of equity markets.
The rally in Taiwan’s market has been largely driven by TSMC, the world’s largest contract chipmaker, which now accounts for more than 42% of Taiwan’s benchmark stock index. Continued optimism around artificial intelligence demand, semiconductor exports, and global technology spending has significantly boosted investor sentiment toward Taiwanese equities.
Meanwhile, India’s market capitalization has seen pressure amid recent corrections in broader equities and foreign fund outflows, allowing Taiwan to move ahead in the rankings.
The United States continues to dominate global equity markets with a market capitalization of $77.96 trillion. China remains the second largest market globally at $15.57 trillion, followed by Japan at $8.67 trillion and Hong Kong at $7.26 trillion.
Taiwan’s rise highlights the increasing dominance of semiconductor-driven economies in global financial markets, especially amid the ongoing AI and advanced computing boom.
India, however, continues to remain among the fastest-growing major equity markets globally, supported by strong domestic participation, improving corporate earnings and sustained retail inflows.
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