Taiwan is optimistic about its economic growth prospects for 2026, projecting an increase of more than 3%, driven primarily by the burgeoning demand for artificial intelligence (AI) applications. This outlook was shared by Economic Affairs Minister Kung Ming-hsin during a press briefing held on Thursday in Taipei.
Minister Kung”s comments reflect a more positive perspective compared to earlier forecasts. Just last month, the central bank of Taiwan estimated a growth rate of 2.68% for the upcoming year, a reduction from the anticipated 4.55% for the current year. This downward revision was attributed to the effects of U.S. tariffs on Taiwanese exports, which are currently set at 20%.
During the briefing, Kung expressed his strong optimism regarding the potential for the economy to surpass the 3% growth mark in 2026, citing the rapid expansion of the AI sector as a key driver. Taiwan is recognized as a significant player in the semiconductor industry, home to the world”s largest contract chip manufacturer, TSMC. TSMC supplies major tech firms, including Nvidia, which are at the forefront of AI technology development.
Next week, Taiwan”s statistics bureau is expected to release preliminary data on the country”s economic growth for the third quarter. However, updates on the economic outlook for 2025 and 2026 will not be available until several weeks later. Furthermore, Taiwan continues to engage in discussions with the United States to seek reductions in the tariffs that currently do not apply to semiconductor exports.
