Taiwan’s economy inches upwards but misses target as AI tech demand fails to materialise
- Taiwan has released its GDP growth numbers for the third quarter, avoiding contraction but landing shy of the government’s target
- Figures arrive as global demand for artificial intelligence and related technology reaches new heights, raising questions on how the tech hub can capitalise
Taiwan’s economy grew 2.32 per cent in the third quarter, falling short of a government forecast and reflecting only mild interest in the island’s signature hi-tech gear even as artificial intelligence (AI) gains traction worldwide.
Globally, the AI market is expected to grow 17.3 per cent from this year through 2030 riding a wave of demand for chatbots, blockchain, and healthcare automation applications, market research firm Statista has forecast.
Taiwan already supplies about 60 per cent of the world’s semiconductor chips. Industry leaders and economists have said they expect more orders eventually for graphic processing units, memory chips, storage hardware and other components that aid AI transactions.
But the third quarter’s figures show only a nascent beginning for that possible upcycle.
“We’re seeing the tech sector in general drawing down inventory,” said Tony Phoo, an economist with Standard Chartered Bank in Taipei. “We are watching out for data that will suggest that the global demand for consumer electronics has stabilised.”
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