Taiwan Stock Market Ranks 5th Globally; Morgan Stanley Predicts 60% Growth in AI Semiconductor Market by 2027

Taiwan's stock market capitalization has surpassed India's to become the 5th largest in the world. Despite market concerns over a potential AI bubble, Morgan Stanley stated today that TSMC's production capacity serves as a leading indicator for AI semiconductors, predicting a 60% growth in the addressable market by 2027. While components like memory and substrates are currently tight, there is no visible risk of AI supply chain disruption next year. Shawn Zhang, head of Morgan Stanley's Greater China semiconductor research team, noted that geopolitical tensions between the US and China have concentrated AI orders in Taiwan. Furthermore, due to power shortages and high capital expenditures, cloud service providers are shifting toward ASIC and silicon photonics technologies. Joseph Moore, head of the semiconductor research team, noted that supply constraints in DRAM and 3nm processes are actually preventing over-expansion, keeping the market healthy.