Thanks to the rise in TSMC’s stock price, the market capitalization gap between the Taiwanese and South Korean stock markets has widened to its largest extent in at least 21 years since 2003.
According to Bloomberg, the market capitalization of the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) recorded US$2.252 trillion as of April 8, surpassing the market capitalization of the South Korean KOSPI, which stood at US$1.88 trillion, by US$375 billion.
Bloomberg reported that the Taiwanese stock market has risen by around 14 percent since the beginning of this year, with nearly two-thirds of this increase attributed to TSMC, the world’s largest semiconductor foundry company.
TSMC’s stock price has surged by over 30 percent since the beginning of this year as it supplies advanced semiconductors to global leading tech companies, including Nvidia. Analysts also note that Taiwan has established a comprehensive AI supply ecosystem, ranging from semiconductor design to foundry and server manufacturing, not solely dependent on TSMC.
In comparison, South Korea has memory semiconductor companies such as Samsung Electronics and SK hynix, but its exposure to AI-related industries is relatively limited, according to analysts.
With the announcement by the U.S. government that it would provide subsidies totaling US$11.6 billion (approximately 15.7 trillion won), including US$6.6 billion (approximately 8.9 trillion won) to TSMC, the company’s stock price reached a record high during trading hours on the Taiwanese stock market on April 9. As of 11:30 am Korean time, TSMC’s stock price had risen by 3.58 percent compared to the previous day’s closing price.
The TAIEX also briefly hit a new all-time high during the trading session, rising by 1.40 percent to 20,703.05 compared to the previous day. Meanwhile, the KOSPI is trading relatively flat, down by 0.08 percent to 2,715.39 compared to the previous day. Samsung Electronics is experiencing a decrease of 1.07 percent, while SK hynix is showing an increase of 0.61 percent in stock prices, indicating contrasting trends.
