Taiwan's economy is booming on the back of the AI buildout, and the good news is spreading beyond chips into the rest of the country's industry and government finances.

• Taiwan is now the biggest supplier of AI hardware to the US, mostly servers and GPU modules.
• Exports jumped about 45% in the first seven months of this year, with sales to the US up more than 60%.
• UBS expects Taiwan's economy to grow 11% this year and 4.3% next year, above what most forecasters predict, with risks tilted higher.
• The boom is showing up elsewhere: companies are buying record amounts of machinery, retail sales are at multi-year highs, and old-line metals and machinery makers are picking up again.
• Tax revenue has surged, and Taiwan's budget has run a surplus almost every year for a decade, giving the government room if things turn.

Outlook: Growth should broaden as data centers go up in India, Indonesia, Australia and possibly South Korea, easing Taiwan's heavy reliance on the US market.