Taiwan’s Export Boom Driven by AI and Semiconductor Demand

Taiwan’s Ministry of Finance (MOF) has reported a remarkable surge in the country’s exports, which reached US$61.8 billion in October—an impressive 49.7% increase over the same period last year. This marks the largest growth in nearly 16 years. The MOF attributes this rise to growing global demand for semiconductor products and artificial intelligence (AI) technologies.

Imports also saw double-digit growth, increasing by 14.6% year-over-year to US$39.22 billion. The resulting trade surplus stood at US$22.58 billion in October 2025, highlighting the continued strength of Taiwan’s economy.

AI Demand Fuels Export Growth

Taiwan is currently engaged in talks to reduce the 20% tax on its exports to the United States, although semiconductors are presently excluded from these discussions. The MOF believes that export momentum will remain strong, driven by the traditional year-end shopping season in Western markets and the accelerating global adoption of AI and high-performance computing (HPC) applications.

Looking ahead, the ministry projects that Taiwan’s exports could reach US$600 billion in 2025, translating to a 30% annual growth rate. However, the MOF warned that evolving U.S. tariff policies and ongoing geopolitical uncertainties could impact future trade, emphasizing the need for careful monitoring.

Expansion of Data Centers and Semiconductor Markets

According to the MOF’s statistical bulletin released on October 30, the global boom in AI technologies is fueling rapid construction and upgrading of data centers. This expansion is in turn boosting the market for memory and related storage devices.

For example, from January to September 2025, Taiwan’s DRAM shipments soared by 99.0% year-over-year to US$11.5 billion. Exports of computer parts and accessories, including memory modules, also set new records, reaching US$23.9 billion—an increase of 1.3 times compared to the previous year.

Conversely, exports of other computer storage devices, such as hard disk drives (HDDs) and solid-state non-volatile storage devices (SSDs), declined by 10.6% and 0.3% respectively.

Import Growth and AI Chip Production

Taiwan’s DRAM imports doubled year-over-year to a record US$32.4 billion, primarily due to increased demand for high bandwidth memory (HBM) used in AI chip production. Leading Taiwanese companies, such as TSMC, continue to be key suppliers for giants like Nvidia and Apple.

The MOF anticipates that exports from these companies could increase by 35% to 40% year-over-year in November, maintaining strong momentum.

Key Export Destinations and Sector Growth

Export figures showed robust performance in several markets. Taiwan’s exports to China increased by 3.2% in October, while exports to the U.S. surged by 144.3% year-over-year to $21.135 billion. Semiconductor exports rose by approximately 29.2%, and electronic component exports increased by 27.7% to $21.16 billion.

On the import side, the recorded growth of 14.6% to $32.22 billion was lower than the 25.3% growth predicted by experts.

TIER Doubles Taiwan’s Economic Growth Forecast

Reflecting this export boom, the Taiwan Institute of Economic Research (TIER) has nearly doubled its prediction for Taiwan’s economic growth rate in 2025—from 3.02% to 5.94%. TIER credits this revision to strong global demand for AI technologies, particularly from the U.S., supporting both investments and exports in Taiwan.

Data from the Directorate General of Budget, Accounting, and Statistics (DGBAS) showed that real exports of goods and services increased by 30.64% year-over-year, fueled by new consumer electronics products and innovative technologies like AI. Imports also rose by 25.27% during the same period.

Outlook and Caution

While the outlook for exports and economic growth remains positive, TIER cautions that growth may slow in 2026 due to the high base effect in the electronics and information technology sectors. The institute forecasts economic growth and export growth to moderate to 2.60% and 3.08%, respectively, in 2026.

Sun Ming-te, Director of TIER’s Macroeconomic Forecasting Center, also warned of concerns regarding a potential AI bubble, noting that widespread cross-investment among tech companies has yet to lead to major breakthroughs.

**Conclusion**

Taiwan’s export boom, driven by AI and semiconductor demand, continues to provide substantial momentum to its economy. Nevertheless, ongoing geopolitical and economic uncertainties warrant close attention as the nation navigates its future growth trajectory.
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