Taiwan TSMC Surpasses Tencent to Become Asia's Largest Market Cap Company

"TSMC Value Rises Amid Semiconductor Supply Shortage... Tencent Falls Due to China Regulations"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Taiwan's semiconductor foundry company TSMC has surpassed China's tech company Tencent to become the largest company by market capitalization in Asia.

While TSMC, the world's number one semiconductor foundry, benefited from the global semiconductor supply shortage, Tencent's stock price plummeted due to comprehensive regulations imposed by Chinese authorities.

The South China Morning Post (SCMP) reported on the 18th, citing Bloomberg data, that Taiwan's TSMC overtook China's Tencent to become the largest company by market capitalization in Asia.

According to Bloomberg, as of the closing price on the 17th, TSMC's market capitalization reached $540 billion.

The second largest company by market capitalization in Asia is Tencent, with a market capitalization of $538 billion as of the closing price on the 17th.

The third largest company by market capitalization in Asia was recorded as Alibaba, China's largest e-commerce company. Alibaba's market capitalization was $479.4 billion.

TSMC is on a growth trajectory due to the global semiconductor supply shortage caused by the COVID-19 pandemic. This year, TSMC's stock price has risen by 9.4%.

According to the semiconductor foundry revenue rankings compiled by market research firm TrendForce, TSMC recorded sales of $12.92 billion in the first quarter of this year, maintaining its undisputed number one position.

TSMC's global foundry market share increased from 54% in the fourth quarter of last year to 55%.

On the other hand, Tencent, China's largest internet and online gaming company, was hit hard by stringent regulations on internet technology companies imposed by Chinese authorities.

In particular, on the 3rd, the Economic Information Daily, a newspaper published by China's state-run Xinhua News Agency, referred to online games as "spiritual opium," causing gaming-related stocks to plummet simultaneously.

Following this report, Tencent's stock price fell by as much as 11% at one point.

Chinese authorities have been imposing various regulations on giant tech companies since last November, when they blocked Ant Group's initial public offering (IPO) on the Shanghai and Hong Kong stock exchanges.

Ant Group, a fintech company led by Alibaba Group founder Jack Ma, planned to simultaneously list on the Shanghai and Hong Kong stock exchanges in early November last year, aiming to raise a record $34 billion (38.3 trillion KRW), but the IPO was canceled due to a sudden halt by Chinese authorities.

Subsequently, Chinese authorities launched an "internet security review" of Didi Chuxing, China's largest ride-sharing company, immediately after its listing on the New York Stock Exchange (NYSE) at the end of June, citing reasons such as "preventing national data security risks, safeguarding national security, and ensuring public interest."

This content was produced with the assistance of AI translation services.