TIER Raises Taiwan’s 2026 Growth Forecast to 10.38% on AI Boom

Taiwan’s economy is heavily leveraged to the global semiconductor and information-technology hardware cycle. Surging spending on artificial intelligence, high-performance computing and cloud infrastructure has lifted demand for advanced chips, servers and related equipment, driving exports and capacity investment. The boom matters because it could keep growth in double digits even after Taiwan’s strong 2025 performance, while broadening momentum from external trade to private investment and household consumption.

The Taiwan Institute of Economic Research on July 24 raised its 2026 GDP growth forecast to 10.38% from 7.56% in April, a 2.82-percentage-point upgrade. The estimate topped Academia Sinica’s 10.16% forecast issued July 13 and the Chung-Hua Institution for Economic Research’s 10.35%. Merchandise exports jumped 47.1% year-on-year in the first half, led by electronics and ICT products. TIER President Chang Chien-yi said the AI-driven opportunity should last at least through 2028.