Taiwan Credit-Guarantee Financing Tops NT$1.16 Trillion on AI Boom

Taiwan’s artificial-intelligence investment boom is driving stronger funding demand across the semiconductor and information and communications technology supply chains. Small and medium-sized enterprises are borrowing to expand factories, purchase equipment and bolster working capital as orders increase. The Small and Medium Enterprise Credit Guarantee Fund of Taiwan helps companies with insufficient collateral secure bank financing, making its guarantee activity a key gauge of business investment and industrial momentum.

The fund facilitated more than NT$1.16 trillion ($35.7 billion) of financing from January through July, the highest amount recorded for the seven-month period. Demand was led by SMEs serving AI-related semiconductor and ICT industries. At the current pace, the fund could meet its full-year financing target as early as the end of August, putting the annual total on course to set a record.