Taiwan’s economy could grow above 3% in 2026, supported by the strong demand for artificial intelligence (AI) applications, according to Economic Affairs Minister Kung Ming-hsin. Speaking on Thursday, Kung expressed a more optimistic outlook than earlier forecasts, citing rapid AI expansion as a key growth driver.
Last month, Taiwan’s central bank projected a lower growth rate of 2.68% for next year, compared to an estimated 4.55% expansion in 2025. The downgrade reflected concerns about U.S. tariffs on Taiwanese exports, currently set at 20%.
Kung told reporters in Taipei he remains “quite optimistic” that the economy will exceed expectations thanks to the accelerating AI industry. Taiwan continues to play a central role in the global tech supply chain, as home to the world’s largest contract chipmaker, TSMC, which supplies Nvidia and other major companies leading AI innovation.
The Taiwan statistics bureau is scheduled to release preliminary third-quarter growth figures next week. Updated forecasts for 2025 and 2026 will follow in the coming weeks. Meanwhile, Taiwan remains in negotiations with the United States to reduce the export tariff, which currently excludes semiconductor products.
