TSMC represents over 40% of the total market capitalization of the TAIEX, Taiwan’s main stock index. In May 2026, Taiwan became the world’s fifth-largest equity market by capitalization, surpassing India. When TSMC reported quarterly revenue of $40.2 billion, a 40% year-over-year jump, and profit of $22.3 billion, up 77%, markets deemed the guidance insufficient. TSMC shares fell 7.3% the following session, causing the largest single-day point decline on record for the TAIEX. Sherman Lin, chair of the Taiwan Stock Exchange, is implementing diversification measures, including raising the single-stock holding cap for mutual funds from 10% to 25% and expanding the ETF product lineup.
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