AI Demand Drives Taiwan Banks’ Foreign-Currency Deposits, Loans to Records

Taiwanese banks are seeing a surge in foreign-currency financing as global investment in AI infrastructure, data centers and semiconductor capacity accelerates. CTBC Bank, First Commercial Bank and Mega International Commercial Bank said funding needs for factory construction, equipment purchases and working capital are expanding as technology supply chains build capacity and shift production overseas. The trend is increasingly important for banks’ corporate lending and cross-border finance businesses.

Central bank data reported on July 20 showed foreign-currency loans at Taiwan’s domestic banks totaled about NT$841.2 billion at the end of May 2026. The balance fell NT$22.1 billion from April but remained NT$215.8 billion higher than at the end of 2025, the strongest increase on record for the first five months of a year. Annual growth stayed above 60% for a fourth consecutive month from February through May.

Taiwan’s export-oriented economy generates substantial foreign-currency proceeds for local companies, making corporate payments, overseas earnings and treasury flows important sources of deposits at domestic banks. Surging demand for artificial intelligence infrastructure and high-performance computing has boosted shipments across the island’s semiconductor and server supply chains. The resulting inflows have lifted foreign-currency balances and highlighted how the AI-led export cycle is reshaping bank funding.

The Financial Supervisory Commission said foreign-currency deposits at Taiwan’s domestic banks exceeded NT$16 trillion for the first time at the end of May, extending their record high. The increase was driven mainly by stronger AI-related exports and continued inflows of overseas earnings and customer payments to supply-chain companies. CTBC Bank ranked first among the six largest foreign-currency deposit holders, with NT$1.71 trillion.

The artificial intelligence boom has increased cross-border procurement and investment by server, semiconductor and supply-chain companies, raising their need to manage funds for receipts and payments in U.S. dollars and other foreign currencies. Foreign-currency deposits and loans at Taiwan’s domestic banks, tracked by the Financial Supervisory Commission, have therefore become important gauges of export momentum, corporate investment and exchange-rate risk.

By the end of April, foreign-currency deposits at domestic banks were closing in on NT$16 trillion, while foreign-currency loans had climbed to NT$863.3 billion, both record highs. The latest growth was driven mainly by funding demand from AI-related companies, indicating that technology supply-chain expansion and overseas transactions continue to increase the scale of banks’ foreign-currency business.

Rising global investment in AI infrastructure is fueling capacity expansion among Taiwan’s AI server, high-performance computing and electronics suppliers. Companies need more foreign-currency funding for procurement, shipments and working capital. The rapid increase in foreign-currency lending by Taiwanese banks, a gauge of cross-border trade and corporate investment, also shows that AI-related business is spreading from manufacturing revenue to bank lending and trade finance.

Outstanding foreign-currency loans at Taiwanese banks exceeded NT$852.7 billion at the end of March 2026, an all-time high and up 68.89% from the same period in 2025. CTBC Bank, Taipei Fubon Bank and First Commercial Bank said revenue growth in AI servers, HPC and related electronics industries had generated strong demand for trade finance and working capital.