Taiwan’s export surged 69.9 per cent year-on-year in January to a record $65.77 billion, far exceeding Reuters poll expectations of a 51.9 per cent rise and accelerating from December’s 43.4 per cent growth
Taiwan’s export engine roared into 2026 with its fastest growth in 16 years, as global demand for artificial intelligence (AI) chips turbocharged shipments and reinforced the island’s pivotal role in the semiconductor supply chain.
Exports surged 69.9 per cent year-on-year in January to a record $65.77 billion, far exceeding expectations in a Reuters poll for a 51.9 per cent rise and accelerating from December’s 43.4 per cent growth, according to data released by Taiwan’s finance ministry. It marked the 27th consecutive month of annual export expansion and the strongest monthly increase since 2010.
Imports rose 63.6 per cent to $46.87 billion, leaving a trade surplus of $18.89 billion for the month.
AI demand powers record gains
The finance ministry attributed the outsized jump to robust demand linked to AI and cloud computing applications. Taiwan, home to the world’s largest contract chipmaker TSMC, sits at the heart of global semiconductor production, supplying technology giants including Nvidia and Apple.
Exports of information, communication and audio-video products—a category that includes many AI-related items—more than doubled, soaring 129.8 per cent year-on-year to $28.71 billion and accounting for 43.7 per cent of total exports. Shipments of electronic components climbed 59.8 per cent to $22.36 billion, also a record high.
By market, exports to the United States skyrocketed 151.8 per cent to $21.28 billion, making the US Taiwan’s largest export destination in January with a 32.4 per cent share. Exports to mainland China and Hong Kong rose 49.6 per cent to $16.03 billion, while shipments to ASEAN countries jumped 61.8 per cent. Exports to Europe more than doubled, up 106 per cent.
The ministry said the comparison was also helped by a lower base last year, when the Lunar New Year holiday fell in late January, reducing working days. Even so, officials expect momentum to continue, forecasting export growth of 20–27 per cent in February despite this year’s holiday falling mid-month.
Tariffs absorbed, relocation pressure builds
Taiwanese exporters have so far weathered US trade tensions with limited damage. While Washington imposed 20 per cent tariffs on certain goods last year, key semiconductor exports were excluded. The rate was reduced to 15 per cent last month under a broader trade and investment understanding between Taipei and Washington.
The export boom comes as the United States steps up efforts to diversify semiconductor manufacturing away from Taiwan, citing supply chain resilience and geopolitical risk. However, Taipei this week pushed back against pressure to relocate more advanced chip production overseas.
Officials view the island’s manufacturing concentration—often dubbed the “Silicon Shield”—as a strategic asset that acts as a deterrent against potential Chinese aggression. Maintaining cutting-edge fabrication capacity at home is seen not only as an economic priority but also as a geopolitical bargaining tool in dealings with both Washington and Beijing.
A two-track economy emerges
The blistering pace of export growth has also highlighted widening divergences within Taiwan’s domestic economy. While semiconductor and high-tech manufacturers are reaping windfall gains from the AI boom, more traditional sectors are seeing comparatively modest expansion.
In January, exports of base metals and related articles rose 22.3 per cent, machinery shipments increased 29.4 per cent, and plastics and rubber products edged up 8.6 per cent—solid but far below the triple-digit growth recorded in AI-linked categories.
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