Taiwan's economy is booming on the back of the AI boom, with the government sharply raising its 2026 growth forecast — very good news for Taiwan and its chipmakers.

• Taiwan now expects its economy to grow 11% in 2026, the fastest since 1987, driven by global demand for AI.
• Exports are set to jump over 20%, with chip sales leading as cloud giants pour money into AI infrastructure.
• Chipmakers are ramping up spending on new factories and equipment, lifting business investment.
• A strong stock market and job market are making people wealthier, so they're spending more too.
• The one downside: prices are rising above 2%, as bad weather lifts food costs and the AI rush causes shortages in tech parts.

Outlook: Growth is expected to stay strong but cool to around 6% in 2027 as inflation eases.