AI-driven demand and other emerging technologies kept Taiwan's export momentum strong in the first quarter of 2026, with exports reaching US$195.74 billion, rising 51% year on year. Economic growth hit 13.69%, the highest quarterly growth in 39 years. Taiwan's GDP is forecast to reach NT$32 trillion (US$1.02 trillion) in 2026.

Explosive AI-driven demand and a booming memory rebound push Taiwan's chip industry to NT$1.93 trillion (approx. US$61.9 billion) in the first quarter of 2026, with foundry and memory segments leading the charge.

Advanced Semiconductor Engineering (ASE) and PCB manufacturer Wus Printed Circuit are teaming up to build a new packaging facility in southern Taiwan, as the world's largest chip assembler moves to expand capacity ahead of surging AI-driven demand. The plant, to be located in the Kaohsiung Nanzih Technology Industrial Park, is scheduled to open in September 2029.

AI-driven demand and new product cycles are accelerating competition among major memory makers, creating pressure across storage and component supply chains. Production is running near full capacity, margins on some DDR5 products have improved, and next-generation HBM will be a focal point of contention through 2027 and beyond.

Vanguard International Semiconductor said AI-driven demand has largely offset geopolitical and macroeconomic headwinds and will be the dominant force shaping semiconductor industry conditions in 2026. The wafer foundry said AI infrastructure buildout has crowded available capacity, pushed prices higher and accelerated customer orders for its Singapore 12-inch fab, with sampling now slated for July