Growing like ‘gangbusters’: Can Taiwan maintain its economic momentum?
Taiwan's economy is experiencing a significant boom driven by high global demand for AI chips and technology exports. However, experts warn that geopolitical tensions and demographic challenges may threaten long-term sustainability.
Why it matters
Taiwan's central role in the global semiconductor supply chain makes its economic stability a critical factor for international tech markets.
Taiwan’s GDP is soaring on the back of US imports of AI chips, but experts warn that problems could arise with Donald Trump and China.
x whatsapp-stroke copylink google Add Al Jazeera on Google info Taiwan dominates the global market for semiconductors [File: Tyrone Siu/Reuters] By Megha Bahree Published On 1 Aug 2026 1 Aug 2026 A Pacific island has become one of the biggest economic success stories of the year so far.
Taiwan has witnessed a dramatic boom in recent months driven by the mania for artificial intelligence (AI). Earlier this year, its stock exchange soared to become the fifth largest in the world based on market capitalisation, the value of its publicly traded shares, overtaking the United Kingdom, Canada and India.
Much of that upward momentum has been driven by AI and other technology exports highly sought after by the United States.
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