Taiwan’s government-affiliated economic research institute maintained its “positive” economic outlook, citing growing global demand for AI and rising semiconductor exports. The assessment suggests that technology-driven industries continue to serve as a growth engine for Taiwan’s economy, even amid global uncertainty.
The Chung-Hua Institution for Economic Research (CIER), a Taiwanese state-run research institute, announced on the 28th (local time) in its October economic index assessment that “Taiwan’s economy is maintaining a gradual but stable recovery phase, and exports of AI, semiconductors, and ICT are driving growth.”
The agency maintained its economic indicator at the “yellow-red (positive)” level for three consecutive months, indicating that the gradual recovery that has continued since June of this year remains in effect.
In its report, CIER analyzed that “demand for AI servers and high-performance semiconductors from major global IT companies is steadily increasing, and Taiwan’s advanced semiconductor production and exports have entered an upward trend again.” The report cited the expansion of orders in the semiconductor supply chain, centered around TSMC, and the increased production of electronic components and data center equipment as key factors contributing to this positive trend.
The report also noted that “private investment and exports are showing a simultaneous recovery, while improved consumer sentiment is contributing to the expansion of domestic demand.” However, it added that “global interest rate uncertainty, the conflict between China and the US, and geopolitical risks in the semiconductor supply chain remain factors of caution.”
According to data from Taiwan’s central bank, semiconductor-related exports increased 17% year-on-year in the third quarter of this year, with AI server and data center component sectors growing by over 25%. Meanwhile, traditional manufacturing and construction industries continued to slow.
The Taipei Stock Exchange is also reflecting positive trends. Major technology stocks, including TSMC and MediaTek, have risen 8-12% over the past month, leading the market recovery. The Taiwanese dollar has shown relatively stable movements, and net foreign capital inflows have also expanded.
Richard Pai, a research fellow at CIER, said, “The AI industry is positioned as a key engine of Taiwan’s economic growth,” and predicted, “In particular, investment in semiconductors and AI equipment will drive GDP growth by 2.5 to 3 percent annually through 2026.”
Taiwan’s Ministry of Economic Affairs also stated, “AI infrastructure, advanced chips, and the electric vehicle parts industry have solidified as the three major axes of new growth,” adding, “It is highly likely that the export recovery will be even greater in the first half of next year.”