TAIPEI, Taiwan (AP) – Taiwan’s economy expanded at an annual rate of 8.6% last year, the fastest in 15 years, as enthusiasm around artificial intelligence and a surge in shipments to the United States boosted export-heavy industries.
Advance estimates released by Taiwan’s statistics bureau on Friday were far higher than economists expected. This was the highest growth rate since 2010.
set by Taiwan trade agreement Earlier this month, he met with the administration of US President Donald Trump. It lowered U.S. tariffs on imports from the island from 20% to 15% in exchange for pledging at least $250 billion in U.S. investments in areas such as semiconductors and AI. Economists say this could boost exports and further boost the economy this year.
“We expect AI-related demand to continue supporting Taiwan’s export performance through 2026, supporting overall economic growth amid sustained global AI investment,” Bank of America economists Hsiao-Ching Pi and Helen Chao said in a recent note.
Taiwan is a leading manufacturer of AI servers, computer chips, and precision equipment. Exports rose nearly 35% last year from a year earlier, driven by technology-related shipments. Shipments to the U.S. soared 78%.
The AI boom is also driving Taiwan’s big tech companies. record Profit and Revenue. Taiwan’s TSMC, the world’s largest contract chipmaker, counts Nvidia as a major customer and is one of the world’s largest companies by market value. Home appliance giant Foxconnmakes AI servers for Nvidia and assembles products for Apple.
But economists say growth this year is likely to slow because it is built on a high level.
Deutsche Bank predicts that Taiwan’s economy will grow by 4.8% in 2026. Concerns are growing that the AI boom may be coming to an end. bubble These are important risks given Taiwan’s dependence on technology exports.
Uncertainty surrounding U.S. tariffs under the Trump administration is also a cause for concern. The same goes for tensions with the Chinese government. China claims Taiwan, an autonomous territory, as its own territory. Implemented by China large scale military exercises They began patrolling around Taiwan in late December, renewing concerns about the possibility of a blockade or occupation by the Chinese government.
