Taiwan's AI Boom Sparks Uneven Economic Growth

Taiwan’s economy is witnessing record growth as global demand for artificial intelligence and advanced computer chips continues to rise. The island, which produces nearly 90 percent of the world’s most advanced semiconductors, has become one of the biggest beneficiaries of the AI revolution.

Economic growth in Taiwan reached 8.63 percent in 2025, while exports jumped sharply due to booming demand for technology products. Semiconductor giant TSMC remains at the centre of this success, supplying chips to major companies including Nvidia and Apple.

For many people working in Taiwan’s technology industry, the AI boom has created exciting opportunities and rising incomes. Major technology events and growing investments have further strengthened Taiwan’s position as a global tech hub.

However, not everyone feels included in the country’s economic success. Many workers outside the tech industry say wages remain low while living costs, especially housing prices, continue to rise.

Economists warn that Taiwan is increasingly becoming a “K-shaped economy”, where one section of society becomes wealthier while others struggle financially. Although the semiconductor industry drives much of the growth, it employs only a small portion of Taiwan’s workforce.

Experts say Taiwan’s earlier economic model, which relied on small and medium businesses, distributed wealth more evenly across society. Today, large corporations dominate investment and attract most of the profits linked to AI and technology growth.

Many Taiwanese citizens also worry about rising inequality. Surveys show a growing number of families feel financially anxious because everyday expenses and property prices are increasing faster than salaries in non-tech sectors.

While Taiwan’s stock market has more than doubled in recent years, critics argue that only people with investments are truly benefiting from the boom.

Analysts say Taiwan now faces the challenge of ensuring that economic growth reaches a broader section of society instead of remaining concentrated within the technology and semiconductor industries.