🧠 Food for thought

Implications, context, and why it matters.

Taiwan’s AI boom is huge, but it is not lifting every industry

• Growth stayed centered in tech. Orders for telecommunications products climbed 120.9%, while electronic products rose 73.7% 1.
• The gains did not reach every sector. In 2025 data, base metals and plastics and rubber posted weaker or falling export orders as a supply glut weighed on demand. Taiwan’s Ministry of Economic Affairs (MOEA) tied part of that pressure to oversupply from China 2.
• Demand was broad across markets. Orders from China rose 45.7%, Europe increased 45.2%, and Japan grew 32.9% in March 1.

The surge reveals Taiwan’s deep role in the global AI buildout

• Export orders are rising as cloud and AI companies spend more on data centers and other infrastructure 3.
• Taiwan sits near the center of that buildout, especially through Taiwan Semiconductor Manufacturing Co. (TSMC). The company is widely seen as holding an essentially dominant position in advanced chipmaking at scale, which can tighten supply for leading-edge chips 3.
• That position can give Taiwan more room to raise prices, with estimates putting possible 2026 increases at 3% to 10% 3.
• Taiwan’s leverage also shapes politics. US tariffs on imports from Taiwan fell to 15% from 20% under a deal tied to investment pledges, while pressure has grown for more chip production in the US 4.