Strong AI Supply-Chain Demand Drives Taiwan Banks' May Working-Capital Loans to Record High

As artificial intelligence technology surges worldwide, the AI supply chain has become a key engine of Taiwan's economic growth. Companies are stepping up inventories, purchasing materials and expanding capacity to meet strong market demand, sharply increasing their need for bank working-capital financing. Changes in domestic banks' lending portfolios reflect Taiwan's key role in global technology supply chains and provide an important gauge of activity among its semiconductor and electronics manufacturers.

Financial Supervisory Commission data showed that domestic banks' total outstanding loans had exceeded NT$47 trillion by the end of May, rising NT$428.3 billion during the month. The Banking Bureau said strong demand across the AI supply chain prompted companies to stock up on materials and expand capacity, driving a NT$350.1 billion monthly surge in working-capital loans. The increase was a record for May and accounted for more than 80% of the month's overall lending growth, showing that AI business opportunities had translated into a tangible wave of financing demand.