TAIPEI, Taiwan — Taiwan’s economy has recorded its most robust annual expansion in 15 years, achieving an impressive 8.6% growth rate throughout the previous year. This exceptional performance, significantly surpassing economic forecasts, has been primarily driven by soaring exports in artificial intelligence technologies and increased shipments to the United States.
The island nation’s statistical authority released advanced estimates indicating this represents the strongest economic performance since 2010. Taiwan’s strategic position as a manufacturing hub for AI servers, computer chips, and precision instruments has positioned it advantageously within the global technology supply chain. Export figures reveal a remarkable 35% annual increase, with shipments to the U.S. market surging by an extraordinary 78%.
Recent trade agreements with the United States have further strengthened Taiwan’s economic prospects. The newly established trade deal reduces U.S. tariffs on Taiwanese imports from 20% to 15% in exchange for substantial investment commitments exceeding $250 billion in semiconductor and AI sectors within the United States.
Leading technology corporations including Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn have reported record-breaking profits and revenues. TSMC, the world’s premier contract chipmaker and key supplier to Nvidia, continues to demonstrate formidable market presence, while Foxconn maintains critical manufacturing partnerships with both Nvidia and Apple.
Despite current successes, economists project moderated growth in coming years due to higher baseline comparisons. Deutsche Bank forecasts approximately 4.8% economic expansion for 2026. Potential challenges include concerns regarding AI market sustainability, evolving U.S. trade policies under potential Trump administration changes, and ongoing geopolitical tensions with Beijing. China recently conducted substantial military exercises around Taiwan, reinforcing territorial claims over the self-governed island.