Taiwan Forecasts Fastest Economic Growth in 16 Years on AI Boom

Semiconductors remained the key engine of Taiwan’s economy, driving a sharp increase in manufacturing production at the start of 2026.

A person walks past the logo of Taiwan Semiconductor Manufacturing Company at Hsinchu Science Park in Hsinchu, Taiwan, on April 18, 2025. Annabelle Chih/Getty Images

Taiwan’s economy is on track to post its strongest annual growth in 16 years as soaring demand for artificial intelligence (AI) tech fuels exports, manufacturing, and investment.

Taiwan’s National Statistics Agency said on May 29 that real gross domestic product (GDP) is now expected to grow by 9.64 percent in 2026. It is a sharp upward revision from its previous forecast and one of the strongest growth rates recorded since the global financial crisis.