AI Boom Drives Extreme Concentration in Asia Markets as Chip Giants Dominate
Samsung Electronics and SK Hynix together account for roughly 55% of South Korea's Kospi index, while Taiwan Semiconductor Manufacturing Company alone represents about 42% of Taiwan's Taiex index, highlighting growing concentration risk.
The artificial-intelligence boom is fueling an extreme concentration of market weight in Asian equity benchmarks, with a handful of chipmakers now dominating the indices in South Korea and Taiwan.
Samsung Electronics and SK Hynix together account for approximately 55% of the Kospi index. Taiwan Semiconductor Manufacturing Company (TSMC) alone represents about 42% of the Taiex. The rally in both markets has become increasingly dependent on the fortunes of these AI-related semiconductor leaders, underscoring significant concentration risk for investors tracking the region.
Source: First Squawk