Taiwan’s economy grows with AI advancements, yet some remain concerned

Taiwan’s booming semiconductor industry, which produces about 90% of the advanced chips for AI technologies like ChatGPT, has led to significant economic growth, with GDP rising 8.63% in 2025 and 13.69% in early 2026. However, concerns about a “K-shaped economy” have emerged, as benefits are concentrated in tech sectors while traditional industries struggle. The semiconductor sector employs only 300,000 people out of an 11 million workforce, raising issues of wealth inequality and reliance on a single industry for growth.

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