The rapid development of AI has driven Taiwan’s impressive economic growth performance in 2025. Hsien-Ming Lien, President of the Chung-Hua Institution for Economic Research (CIER), pointed out that with the continuation of the AI wave, the outlook for Taiwan’s related industries in 2026 remains promising. The trend of Taiwanese businesses “decoupling from China and pivoting to the U.S.” is expected to persist, and Taiwan’s mature supply chain capabilities will serve as an important pillar for the U.S. push to reshore manufacturing. Moving forward, the global economy will continue to be influenced by factors such as U.S. tariff policies, competition in the AI industry, and China’s internal structural pressures. Consequently, Taiwanese business deployments will place greater emphasis on risk diversification and proximity to major markets.
Manufacturing Reshoring to the U.S.: The Trend of Taiwanese Businesses “Decoupling from China and Pivoting to the U.S.” Remains Unchanged
On the industrial front, the AI and semiconductor industries have not only driven high-tech development but also created opportunities for sectors such as machinery, metal processing, components, and equipment maintenance to enter new ecosystems. Furthermore, AI technology can assist enterprises in addressing labor shortages, enhancing efficiency, and promoting a low-carbon transition. Even in the face of tariffs and low-price competition from China, certain traditional industries have demonstrated resilience by leveraging non-price competition and breaking into high-value-added supply chains.
President Hsien-Ming Lien believes that Taiwan’s economic growth presents structural differences: AI-related industries are performing outstandingly, while traditional industries remain under significant pressure. The industry expects the government to strive for conditions similar to those in Japan and South Korea in tariff negotiations with the U.S. He also suggested that Taiwan’s investment in the U.S. should not be limited to the technology sector but could also extend to industries such as food and beverage as well as services.
Taiwan’s greatest advantage lies in its complete and highly flexible manufacturing supply chain. Under U.S. policy aimed at reshoring manufacturing, Taiwan plays a crucial and irreplaceable role. The proportion of investment by Taiwanese businesses in the U.S. is expected to continue to increase.
Author: CIER Editorial Team
Date: December 16, 2025