Taiwan central bank sees exports driven by tech demand into 2027

Taiwan central bank sees exports driven by tech demand into 2027
Tech drives Taiwan exports

Taiwan's export outlook remains supported by demand tied to emerging technology applications as the island's semiconductor sector continues to benefit from AI-related spending. The central bank says that momentum extends into next year, even as economic growth in 2027 is likely to moderate because of a high comparison base this year.

Highlights

  • Taiwan's central bank projects 5.82% economic growth next year, with exports and private investment supported by strong emerging technology demand.
  • The central bank raised its 2026 GDP growth forecast to 11.48%, up from the previous 9.45% estimate in June, citing continued industry momentum.
  • Taiwan's semiconductor sector, led by TSMC and driven by AI technology demand, underpins exports while geopolitical and weather risks remain key inflation uncertainties.

Central bank outlook for exports and growth

As reported by Reuters, Taiwan's central bank says in a report to lawmakers that strong demand for emerging technology applications is expected to keep supporting exports and private investment into next year.

The bank says the economy is forecast to expand 5.82% next year, adding that this still represents steady growth even though the pace moderates after this year's relatively high base. Last month, the central bank raised its 2026 economic growth forecast to 11.48% from 9.45% projected in June.

Chip sector support and key risks

Taiwan remains a major semiconductor manufacturing hub and is home to TSMC, the world's largest contract chipmaker, whose customers include Nvidia. That industry position continues to tie the island's trade performance closely to AI-related technology demand.

The central bank also says geopolitical risks and weather conditions are the main uncertainties for Taiwan's future inflation path. Those factors could influence the broader economic outlook even as technology-led exports remain resilient.

In our earlier article on the AI-linked tech selloff and rate-hike fears, we explained how hotter-than-expected U.S. inflation data pushed investors to reprice the cost of financing large-scale AI buildouts, weighing on Nasdaq futures and major AI names. We also noted that chipmakers and related tech stocks came under pressure as bond yields jumped and markets grew more cautious about funding conditions for AI investment.

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