Taiwan's GDP exceeds expectations! The AI boom boosts export momentum, with an economic growth rate of 7.64%.

The Directorate-General of Budget, Accounting and Statistics recently released the latest data, indicating that Taiwan's economic growth rate in Q3 2025 reached 7.64%, significantly surpassing the market expectation of 6.25% and marking the second highest growth rate in nearly four years. Analysis points out that the demand for emerging technologies, such as AI, continues to be robust, resulting in the best performance for exports in 17 years. The Directorate-General estimates that the annual economic growth rate is expected to exceed 5%, higher than the previously estimated 4.45%.

The AI boom drives exports to surge, with a GDP growth rate of 7.64%.

The Directorate-General of Budget, Accounting and Statistics stated that Taiwan's GDP growth rate in the third quarter reached 7.64%, mainly attributed to a significant increase in the export of high-tech products such as semiconductors and AI servers. CIER official Jiang Hsin-yi pointed out at a regular press conference:

“External demand contributed to a new high in 17 years this quarter. Assuming export momentum continues, the annual growth rate is expected to reach at least 5%.”

The chart shows data provided by the Directorate-General of Budget, Accounting and Statistics, indicating that Taiwan's economic growth rate will reach 7.64% in Q3 2025 due to strong demand for AI, with the possibility of growth looking at 6% in 2025.

BNP Paribas ( Economist Jeeho Yoon ) stated that due to the continued strong demand for AI, this force is expected to continue boosting Taiwan's economic growth. He predicted that if this trend continues, Taiwan's GDP growth rate for the entire year of 2025 could reach 6%, higher than their original estimate of 5.3%.

The export demand driven by AI has become a major force for Taiwan. In particular, the exports of chips and servers benefited from the US tariff exemption, resulting in Taiwan setting a historical high in exports in August.

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Despite the impressive performance, many economists remain cautious about Taiwan's bright export trend benefiting from AI. Gareth Leather, a senior economist at Capital Economics in Asia, pointed out:

“This rapid growth is unlikely to last long, especially as the effect of companies placing orders in advance to cope with U.S. tariffs gradually fades.”

He believes that Taiwan's current export boom is partly due to importers “rushing to stock up before the uncertain tariffs take effect,” and that data in the coming quarters may face pressure from a high base period. However, he still maintains Taiwan's annual growth forecast at 7.5% and expects the central bank to keep interest rates unchanged.

( Note: The base period refers to the time point or period used as a benchmark for comparison. Here, the base period being too high means that the data from the previous period was too good or too high, resulting in the next period, even with decent performance, appearing to show a slowdown in growth. )

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The United States imposes a 20% tariff on Taiwan, and Taiwan's efforts to negotiate have not yet succeeded.

In July of this year, the Trump administration imposed a 20% tariff on Taiwanese products, higher than the rates faced by Japan and South Korea. During Trump's recent trip to Asia, the U.S. and South Korea reached an agreement to lower certain tariffs and promote investment in the U.S.; however, there has been no progress on the agreement between the U.S. and Taiwan. The Taiwanese government has expressed a desire to negotiate tax reductions with Washington, but consensus has yet to be reached.

In response to the pressure from tariffs, the government announced that starting in November, it will distribute NT$10,000 in cash to each person, including nationals and permanent residents, to support consumer confidence.

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The AI boom continues, TSMC has raised its revenue forecast twice.

In the industrial sector, TSMC ( once again raised its revenue growth expectations for 2025 earlier this month, indicating that the global demand for AI infrastructure and chips remains strong. This not only consolidates Taiwan's key position in the global semiconductor supply chain but also gives outsiders confidence that the AI industry will continue to drive Taiwan's economic growth.

) TSMC is approaching the 1,500 mark, optimistic about revenue and future prospects for AI as stated in the earnings conference (

This article states that Taiwan's GDP has exceeded expectations! The AI boom has boosted export momentum, with an economic growth rate of 7.64%. It first appeared in Chain News ABMedia.