23.10.202507:19:53UTC+00Taiwan Sees 2026 GDP Growth Above 3% on AI Boom

Taiwan's economy may experience growth surpassing 3% next year, contingent on the continued increase in demand for artificial intelligence (AI) applications, as stated by Economic Affairs Minister Kung Ming-hsin on Thursday. This perspective offers a more optimistic outlook compared to prior projections. Speaking in Taipei, Kung expressed confidence that economic growth in 2026 could potentially exceed 3%, propelled by the swift expansion of AI-related sectors, according to a Reuters report. In contrast, Taiwan's central bank last month anticipated economic growth to be 2.68% for the coming year, a decrease from the projected 4.55% for 2025. This cautious forecast considers the implications of US tariffs on Taiwanese exports, currently imposed at 20%. Taiwan, known for its significant role in semiconductor production and as the headquarters of TSMC, the leading global contract chipmaker, supplies companies like Nvidia, thus contributing to the worldwide AI industry surge. The Taiwanese government is engaged in discussions with the United States to negotiate a reduction in tariffs, which presently do not apply to semiconductors.