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Taiwan’s economy grows 8.6% in 2025, fastest rate in 15 years, turbocharged by the AI boom

Taiwan's 8.6% growth in 2025, the fastest in 15 years, was driven by a 78% surge in US shipments and a 35% rise in technology exports, officials said.

  • Advanced estimates show Taiwan's economy expanded at an 8.6% annual rate last year, the fastest pace in 15 years, beating economists' forecasts, Taiwan's statistics agency reported on Friday.
  • Amid an AI frenzy, export-focused industries boosted manufacturing, lifting exports nearly 35% and shipments to the U.S. surged 78% last year with AI servers, computer chips and precision instruments.
  • Major firms ramped production as TSMC, the world's biggest contract chipmaker, counts Nvidia as a key client and Foxconn, electronics giant, makes AI servers for Nvidia and assembles products for Apple, boosting profits last year.
  • Deutsche Bank estimates Taiwan's economy will grow 4.8% in 2026, and Bank of America economists Xiaoqing Pi and Helen Qiao wrote AI demand will support exports that year.
  • Amid the gains, analysts warn the AI boom may be a bubble given Taiwan's tech export reliance, while uncertainty over U.S. tariffs under President Donald Trump and China's late December drills raise geopolitical risks.
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Taiwan's economy grows 8.6% in 2025, fastest rate in 15 years, turbocharged by the AI boom

Taiwan has reported its economy expanded at an 8.6% annual rate last year, its fastest growth in 15 years.

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The Globe & Mail broke the news in Canada on Friday, January 30, 2026.
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