Taiwan's Economy Grows 8.6% in 2025, Fastest Rate in 15 years, Turbocharged by AI Boom

Taiwan’s exports jumped nearly 35% last year. Companies like chip-maker TSMC and Foxconn, a manufacturer of iPhones, have logged record profits and revenues.

Taiwan's Economy Grows 8.6% in 2025, Fastest Rate in 15 years, Turbocharged by AI Boom
Photo of soldiers standing by to conduct a practice operation during a military exercise in Chiayi County, Taiwan, on Wednesday, Jan. 28, 2026, by Chiang Ying-ying/AP

TAIPEI, Taiwan, Jan. 30, 2026 (AP) — Taiwan’s economy expanded at an 8.6% annual rate last year, the fastest pace in 15 years, as its export-focused industries were buoyed by the frenzy over artificial intelligence and a surge of shipments to the U.S.

The advanced estimate released by Taiwan’s statistics agency on Friday was much better than economists had forecast. It was the strongest growth rate since 2010.

Taiwan set a trade deal earlier this month with U.S. President Donald Trump’s administration. It lowered U.S. tariffs on imports from the island to 15% from 20% in exchange for pledges of at least $250 billion of investment in the U.S. in areas such as semiconductors and AI. That could power higher exports, further charging the economy this year, economists say.

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