According to the statistics office on Friday, Taiwan’s tech-heavy economy is predicted to grow at its highest rate in 15 years due to the surge in demand for artificial intelligence (AI) technology. However, next year’s forecast is likely to be clouded by US tariffs.
According to the Directorate General of Budget, Accounting and Statistics, GDP is estimated to grow by 7.37% this year, which is significantly better than the 4.45% pace it projected in August and a level not seen since the 10.25% reported in 2010.
For businesses like Nvidia and Apple, Taiwan is essential to the global AI supply chain. Taiwan Semiconductor Manufacturing (TSMC), the largest manufacturer of chips utilized in AI applications worldwide, serves as its cornerstone.
According to analyst Kevin Wang of Taishin Investment Advisory, “the growth exceeded expectations due to strong demand for AI servers as US CSPs (cloud service providers) continued to intensify their competition.
However, due to worries about the effects of US tariffs, the agency is wary of the GDP growth forecast for 2026. Semiconductors are now exempt from the 20% tariff on Taiwan’s exports to the US, which Taipei is negotiating to lower.
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