Taiwan’s Economic Growth Fueled by AI Semiconductor Demand

Taiwan is poised to benefit significantly from the global surge in artificial intelligence (AI) investments, particularly in the semiconductor sector. The demand for high-performance semiconductors, essential for AI applications like ChatGPT, is expected to drive global AI semiconductor revenue to $119.4 billion by 2027.

Home to Taiwan Semiconductor Manufacturing Co. (TSMC), Taiwan holds a dominant position in the advanced logic chip market. Despite temporary supply constraints, TSMC’s expansion plans are set to meet the growing demand for AI chips. The growth is further bolstered by major tech companies developing custom AI chips using TSMC’s fabrication processes.

While U.S.-China trade tensions pose potential risks, Taiwan’s robust semiconductor industry continues to be a key driver of its economic growth.

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