Taiwan’s stock market has overtaken India’s in relative performance rankings as a powerful rally in semiconductor heavyweight TSMC continues to reshape global equity flows and reinforce Taiwan’s dominance in the AI driven chip economy.
The surge has pushed Taiwan’s benchmark index to levels that now surpass India in market momentum comparisons, reflecting a sharp divergence between two of Asia’s most closely watched emerging markets. While India has remained a key growth story over the past two years, Taiwan’s technology heavy market has accelerated faster on the back of artificial intelligence related demand.
TSMC sits at the centre of this shift. The company’s relentless rise has driven a disproportionate share of gains in Taiwan’s equity market, with its stock rallying strongly as global demand for advanced chips used in AI systems, data centres and high performance computing continues to expand.
Because TSMC makes up a significant portion of Taiwan’s main index, its performance effectively dictates the direction of the entire market. This concentration has amplified gains during the AI boom, turning Taiwan into one of the strongest performing equity markets globally.
The contrast with India is becoming more visible to investors. India’s market has been supported by domestic consumption, financial services and infrastructure growth. But it lacks the same single-sector acceleration that Taiwan is experiencing through semiconductors.
Foreign inflows have increasingly tilted toward Taiwan’s technology sector as global investors chase exposure to AI infrastructure. This has strengthened Taiwan’s valuation multiples and pushed its market capitalization higher relative to several large emerging economies.
However, analysts caution that Taiwan’s rapid ascent also comes with concentration risk. A significant portion of gains is tied to a single company and a single industry cycle, making the market more sensitive to any slowdown in AI investment or disruption in semiconductor supply chains.
Despite these concerns, momentum remains strong. Global technology firms continue to expand spending on AI systems, and TSMC remains the critical supplier enabling that growth. This has kept Taiwan’s equity market firmly in the lead in recent comparative performance rankings against peers such as India.
The shift underscores how deeply artificial intelligence and semiconductor dominance are now shaping global capital flows, with Taiwan emerging as one of the biggest beneficiaries of the current technology cycle.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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