Taiwan economy reports surprise twelve percent growth driven by global demand for artificial intelligence chips
Taiwan's economy grew by a preliminary 12.68 percent in the final quarter of 2025. Strong demand for AI hardware drove the fastest annual expansion since 2010.
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Taiwan's government statistics agency reported Friday that the gross domestic product of Taiwan 
TWgrew by a preliminary 12.68% during the period from October to December 2025 compared to a year earlier. This figure significantly exceeded the 8.5% expansion predicted by analysts in a Reuters poll and surpassed the 8.2% growth rate recorded in the third quarter of the year. The agency identified stronger than expected demand for technologies powering artificial intelligence and high-performance computing as the primary catalyst for the economic acceleration.
TWgrew by a preliminary 12.68% during the period from October to December 2025 compared to a year earlier. This figure significantly exceeded the 8.5% expansion predicted by analysts in a Reuters poll and surpassed the 8.2% growth rate recorded in the third quarter of the year. The agency identified stronger than expected demand for technologies powering artificial intelligence and high-performance computing as the primary catalyst for the economic acceleration.The quarterly results contributed to a full-year economic expansion of 8.63% for all of 2025. This performance marks the fastest annual growth rate for the economy since 2010, when the island recorded a 10.25% increase. The statistics agency noted that demand for applications such as AI and high-performance computing far exceeded its initial expectations, reinforcing the pivotal role the region plays in the global technology supply chain for major international firms.
