Taiwan’s economic growth rate in Q4 exceeds expectations due to robust AI demand

issued Friday, January 30, 2026 · 08:16 PM

8.6% in 2025, the fastest pace since 2010, when the island’s economy grew by 10.3%.

[TAIPEI] Taiwan’s tech-heavy economy grew much faster than expected in the fourth quarter, the Government Statistics Bureau said on Friday (Jan 30), attributing the growth to strong demand for chips and related technologies that power artificial intelligence.

For the full year of 2025, the economic growth rate was 8.6%, the fastest pace since 2010, when it grew at 10.3%.

Taiwan plays a pivotal role in the global AI supply chain for companies like Nvidia and Apple. That position is supported by Taiwan Semiconductor Manufacturing, the world’s largest contract chip manufacturer.

According to the National Statistics Agency, gross domestic product (GDP) grew by 12.7% in the October-December quarter compared to the same period last year, exceeding analysts’ estimates in a Reuters poll of 8.5% and 8.2% growth in the third quarter.

“Demand for applications such as AI and high-performance computing far exceeded expectations.”

Taiwan’s economy has developed significantly, supported by its role as a major producer of cutting-edge semiconductors that power AI.

Although chips were excluded, the impact of the 20% tariff imposed by the United States was largely avoided.

The US government agreed in January to cut this to 15% as part of a broader trade and investment deal. Reuters