Taiwan’s economy is currently experiencing a period of rapid growth, with GDP rising by 6.5% in the first quarter of the year, exceeding expectations. The surge in exports of AI-related tech has been one of the key drivers behind this growth. Taiwan’s AI industry has seen a substantial increase in sales, particularly driven by sales of AI-related hardware, which soared by more than 400% in March alone. This growth has been attributed to investments in AI-related technologies and the strength of the US economy, providing a boost to Taiwan’s export demand.
Taiwan is a major player in the manufacturing of microchips, with TSMC producing 90% of the world’s most advanced processor chips. The increasing demand for these semiconductors due to the AI craze has elevated TSMC to become the world’s ninth most valuable company, worth nearly $720 billion.
In addition to the AI boom, strong consumer spending has also contributed to Taiwan’s growth in the first quarter, with sectors such as tourism, food and beverages, as well as the stock market, experiencing a rebound. However, economists have warned that growth may slow down in the rest of 2024, with estimates suggesting GDP will increase by 3.4% by year-end. Despite these warnings, companies like TSMC and Intel are predicting a potential slowdown in semiconductor demand in the coming months.
The rise in exports has been fueled by ChatGPT technology and other advances in artificial intelligence that have expanded Taiwan’s economy significantly. As such