Taiwan’s economy rides AI boom to better-than-expected growth
Gross domestic product expanded 7.64% in the July-September period
[TAIPEI] Taiwan’s economy grew more than expected in the third quarter, adding to its gains from the AI boom.
Gross domestic product expanded 7.64 per cent in the July-September period, according to a statement from the statistics bureau in Taipei on Friday (Oct 31). That surpassed the 6.25 per cent median estimate in a Bloomberg survey of economists.
Taiwan’s economy has performed well in 2025, largely due to its status as the top producer of the chips and servers powering the development of artificial intelligence. Underscoring that strength, Taiwan earlier reported that exports hit a record in August.
Still, economists have expressed some concern about the outlook for Taiwan because of US tariffs, the slowing of purchases firms made to beat levies taking effect and the high base of comparison in recent quarters.
In July, the Trump administration hit Taiwan with a 20 per cent duty on Taiwan’s shipments – higher than the rates placed on Japan and South Korea. This week during President Donald Trump’s visit, the US and South Korea finalised a deal to lower tariffs and spur investment in America.
Officials in Taiwan have indicated they are trying to cut a better deal with the US but so far that hasn’t materialised.
Underscoring worries about the impact of tariffs, the government will also begin distributing cash handouts of NT$10,000 (S$423) to citizens and permanent residents in November.
Still, there’s optimism that the AI boom will continue boosting Taiwan’s economy. Earlier this month, Taiwan Semiconductor Manufacturing hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes companies will spend more on the new technology. BLOOMBERG
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