Taiwan Q4 economic growth beats forecasts on solid AI demand

At 8.6% in 2025, it is the fastest pace for the island’s economy since 2010, when it grew by 10.3%

[TAIPEI] Taiwan’s tech-focused economy grew much more than expected in the fourth quarter, said the government statistics agency said on Friday (Jan 30), crediting the growth thanks to strong demand for the chips and related technologies that power artificial intelligence.

For all of 2025, the economy expanded by 8.6 per cent – its fastest pace since 2010, when it grew 10.3 per cent.

Taiwan plays a pivotal role in the global AI supply chain for companies such as Nvidia and Apple. Its position is anchored by the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing.

Gross domestic product grew a preliminary 12.7 per cent in the October-to-December period from a year earlier, the statistics agency said, surpassing the 8.5 per cent growth forecast by analysts in a Reuters poll, as well as 8.2 per cent in the third quarter.

“Demand for applications such as AI and high-performance computing far exceeded expectations,” it said.

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Taiwan’s economy has made big strides, supported by its role as a major producer of advanced semiconductors that power AI.

It has largely brushed off the impact of the 20 per cent tariffs imposed by the US, though they excluded chips.

Washington agreed in January to cut that to 15 per cent, as part of a broad trade and investment deal. REUTERS