TSMC Effect? Taiwan overtakes Canada to become the world's 6th largest stock market

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.

The total market capitalization of Taiwan-listed companies has surged more than 35% this year to $4.47 trillion, while Canada’s has climbed about 5% to $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 $1.8 trillion during the period.

The crossover shows 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.