Taiwan's economy grows at fastest rate in 15 years, turbocharged by the AI boom

Taiwan has reported its system expanded astatine an 8.6% yearly complaint past year, its fastest maturation successful 15 years

TAIPEI, Taiwan -- Taiwan’s system expanded astatine an 8.6% yearly complaint past year, the fastest gait successful 15 years, arsenic its export-focused industries were buoyed by the frenzy implicit artificial quality and a surge of shipments to the U.S..

The precocious estimation released by Taiwan’s statistic bureau connected Friday was overmuch amended than economists had forecast. It was the strongest maturation complaint since 2010.

Taiwan acceptable a commercialized woody earlier this period with U.S. President Donald Trump’s administration. It lowered U.S. tariffs connected imports from the land to 15% from 20% successful speech for pledges of astatine slightest $250 cardinal of concern successful the U.S. successful areas specified arsenic semiconductors and AI. That could powerfulness higher exports, further charging the system this year, economists say.

“We expect AI-related request to proceed underpinning Taiwan’s export show into 2026, supporting wide economical maturation amid sustained planetary AI investment,” Bank of America economists Xiaoqing Pi and Helen Qiao wrote successful a caller note.

Taiwan is simply a large shaper of AI servers, machine chips and precision instruments. Its exports jumped astir 35% past twelvemonth from a twelvemonth earlier, led by technology-related shipments. Shipments to the U.S. surged 78%.

The AI roar has besides propelled Taiwan’s starring exertion companies to grounds profits and revenues. Taiwan's TSMC, the world’s biggest declaration chipmaker, counts Nvidia arsenic its cardinal lawsuit and is 1 of the largest companies successful the satellite by marketplace worth — and electronics elephantine Foxconn, which makes AI servers for Nvidia and assembles products for Apple.

However, maturation this twelvemonth volition apt dilatory since it's gathering connected a precocious base, economists say.

Deutsche Bank estimates Taiwan’s system volition turn 4.8% successful 2026. Growing concerns that the AI roar whitethorn beryllium a bubble are a cardinal hazard fixed Taiwan's dependence connected tech exports.

Uncertainty implicit U.S. tariffs nether Trump are different worry. So are tensions with Beijing. China claims Taiwan, a self-ruled island, arsenic its ain territory. China conducted large-scale subject drills astir Taiwan successful precocious December, renewing concerns implicit a imaginable blockade oregon seizure by Beijing.

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