AI Demand Drives Taiwan Machinery Exports to Record High

Taiwan’s machinery exports rose 26.2% year-on-year to a record US$3.5 billion in May, marking the 16th consecutive month of growth, according to the Taiwan Association of Machinery Industry.

The increase was driven primarily by strong demand for AI-related applications and semiconductors, which boosted shipments of electronic equipment. Electronic equipment exports surged 59.7% to a record US$719.3 million, while inspection and testing equipment exports rose 34.1% to US$593.5 million. Power transmission equipment exports increased 7.7% to US$190.2 million, and machine tool exports edged up 2.4% to US$193.8 million.

During the first five months of 2026, Taiwan’s machinery exports reached US$14.6 billion, up 19.9% from a year earlier. The United States remained the largest export market, followed by China and Singapore.

The association said demand linked to AI infrastructure and semiconductor investment continues to support export growth. However, currency movements remain a challenge for Taiwanese manufacturers competing with exporters from Japan and South Korea. It added that machine tool exports are expected to improve further in the second half of the year.

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