The AI Boom Is Real, And Taiwan Is Cashing The Checks

Economic Growth Outlook - Taiwan raised its 2026 economic growth forecast, now expecting GDP to expand by 7.71% this year, significantly higher than the previous estimate of 3.54% [4] - The Directorate General of Budget, Accounting and Statistics indicated that further upward revisions are possible due to strong demand for AI-driven exports [5] AI-Driven Exports - Taiwan's exports surged approximately 70% in January, marking the fastest growth in 16 years, driven by increasing global demand for AI-related hardware [2] - Taiwan Semiconductor Manufacturing Co. (TSMC) remains a key player, reporting a 37% increase in January revenue and plans to increase spending in 2026 as major tech companies ramp up AI investments [3][4] Semiconductor Industry - TSMC is crucial to Taiwan's economy and is the world's leading contract chipmaker, significantly influencing the country's stock index [2] - Taiwan projects a 22.22% increase in exports for 2026, reflecting strong demand in the semiconductor sector [6] Nvidia's Expansion - Nvidia is establishing a significant presence in Taiwan with plans to build a headquarters in Taipei, which includes a 50-year lease for the Beitou-Shilin Technology Park site [8] - The project is expected to involve an investment of over 40 billion New Taiwanese dollars (approximately $1.3 billion) and create over 10,000 jobs, further solidifying Taiwan's role in the global AI and semiconductor landscape [9]