Taiwan's Export Boom Ignites as AI Gold Rush Lifts Global Chip Demand

This article first appeared on GuruFocus.

Taiwan's export engine just roared back to life. October shipments jumped 49.7% from a year earlierthe strongest pace since 2010as global appetite for high-end semiconductors powering artificial intelligence keeps accelerating. Exports to the US soared 144.3% to a record level, making up more than a third of Taiwan's total and marking their biggest share since 1990. The Ministry of Finance said the surge was driven by demand for information and communication technology products, highlighting Taiwan's critical position at the center of the global AI supply chain.

Warning! GuruFocus has detected 6 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator.

The AI investment boom could be rewriting Taiwan's growth story. OpenAI's $1.4 trillion commitment to chip and data center spending has created a wave of demand benefiting Taiwan Semiconductor Manufacturing Co., the key supplier to Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Tesla (NASDAQ:TSLA). Woods Chen, chief economist at Yuanta Securities, said the AI trend has turned out stronger than expected, forecasting Taiwan's economy could expand 7.5% in 2025 versus a median estimate of 5.2%. While shipments to the US hit new highs, exports to China and Hong Kong grew just 3.2%, underscoring how Taiwan's export engine is increasingly tied to AI-driven markets.

Despite trade headwinds from Washington's 20% reciprocal tariff, Taiwan's tech products remain exempt under a Section 232 national security review, keeping its core industries insulated for now. Finance ministry officials expect total exports to reach roughly $600 billion next year, extending strength into year-end. With third-quarter growth already beating forecasts, Taiwan could remain one of the world's fastest-growing developed economies, powered by an AI revolution that continues to reshape global trade flows and industrial demand.

View Comments