Taiwan's AI-Powered Economy Soars in the Shadow of Bubble Fears and China Threats

Nvidia CEO Jensen Huang describes Taiwan as the 'center of the world's computer ecosystem.'

Taiwan's AI-Powered Economy Soars in the Shadow of Bubble Fears and China Threats
Photo of Asia Vital Components Chairman Spencer Shen introducing the laboratory equipment during an interview with The Associated Press in New Taipei City, Taiwan, Friday, Jan. 30, 2026, by Chiang Ying-ying/AP

TAIPEI, Taiwan, Feb. 12, 2026 (AP) — In Taipei, real estate agent Jason Sung is betting that home prices around a high-tech industrial park in the northern part of Taiwan's capital will soon take flight – because of computer chip maker Nvidia.

The area is where Nvidia plans to build its new Taiwan headquarters as it rapidly expands on the island, set to surpass Apple to become the biggest customer of Taiwan semiconductor maker TSMC, the biggest contract manufacturer of the advanced chips needed for artificial intelligence.

Nvidia CEO Jensen Huang describes Taiwan as the “center of the world's computer ecosystem.” It's riding high on the global AI frenzy. Its economy grew at an 8.6% annual pace last year, and it's hoping to maintain that momentum after it recently sealed a trade deal with U.S. President Donald Trump that cut U.S. tariffs on Taiwan to 15% from 20%.

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