Taiwan is experiencing one of the largest benefits from the global artificial intelligence boom due to its world-class semiconductor industry and rising demand for manufacturers such as Apple Inc. and Nvidia Corporation.
Nvidia is currently building a new headquarters in Taiwan while it expands rapidly on the island. In addition, Nvidia Corporation is expected to overtake Apple Inc. as the largest customer at the Taiwan Semiconductor Manufacturing Company —the world’s largest semiconductor fabrication facility for cutting-edge chips used for AI work. CEO Jensen Huang has labeled Taiwan as “the centre of the global computer ecosystem.”
Taiwan’s economy experienced an 8.6% growth in 2021, primarily because of a June 2022 increase of chip and AI-related equipment exports. In 2025, exports are anticipated to increase nearly 35%, with shipments to the United States experiencing a whopping 78% increase due to the strong demand for AI servers and processors. Key components of this growth includeTaiwan Semiconductor Manufacturing Company Limited and Foxconn, both of which manufacture AI servers for Nvidia Corporation and/or assemble devices for Apple Inc.
The AI boom is making Taiwan Semiconductor Manufacturing Company Limited one of the most valuable businesses in the world; its profits are surging as Taiwan Semiconductor Manufacturing Company Limited invests tens of billions of dollars to build new chip factories in Taiwan and/or the United States. As a result, Foxconn’s value has also doubled since 2023 based on a transition into the AI infrastructure market.
Despite the positive effects that have been shown thus far, many experts warn about the dangers of Taiwan’s heavy dependence on technology. Some believe that the growth in AI could create another bubble like the one we saw in the dot-com bust of 2000. C.C. Wei, chairman of Taiwan Semiconductor Manufacturing Company Limited, has also indicated that Taiwan Semiconductor Manufacturing Company Limited needs to invest wisely while meeting the increasing demand for AI production.
The potential of conflict with China, and Beijing’s claims that Taiwan is part of its territory, create an environment of uncertainty within Taiwan. There is significant military force surrounding Taiwan by China, although some analysts assert that Taiwan’s crucial part of the global supply chain of chips help deter any conflict.
While the recent boom in AI has resulted in growth and increased value of Taiwan’s stock markets, the benefits have not been equal across all sectors. Salary increases for technology employees have increased dramatically, while the cost of living has continued to rise significantly for the majority of residents. Therefore, wealth inequality has grown significantly within Taiwan, despite the overall growth and wealth created through Taiwan’s weal from AI.