Taiwan's economic growth forecast for 2025 has been raised to 7.37%, marking the fastest expansion in 15 years. This surge is primarily driven by strong global demand for artificial intelligence (AI) technologies, which has significantly boosted the island's exports and investments. The robust demand for AI chips and technology has led to record export orders, potentially exceeding $700 billion for the year.
Taiwan's economy has benefited from soaring exports, particularly in the semiconductor industry, with companies like TSMC experiencing substantial profit increases due to AI-related demand. This boom has also eased concerns about potential impacts from trade disputes, as many tech goods have been exempted from tariffs. The United States has become a key market, with exports skyrocketing due to the demand for chips and servers powering AI infrastructure.
Looking ahead, Taiwan's economic growth is projected to continue, driven by the expansion of AI and high-performance computing applications. The growth forecast for 2026 has also been revised upwards, reflecting confidence in sustained export growth. This positions Taiwan as a critical player in the global technology supply chain, poised to benefit from the ongoing AI revolution.
