How AI made Taiwan the world’s fastest growing large economy

Taiwan has overtaken India as the world's fastest growing large economy in 2026, thanks to a surge in artificial intelligence (AI) investment and exports driven by semiconductor manufacturing giant Taiwan Semiconductor Manufacturing Company (TSMC). According to data released on Friday, Taiwan's GDP grew by 14.36% in the July-September quarter, the highest among major economies.

This follows growth of 15.43% in the January-March quarter and 12.93% in April-June. Economists predict that Taiwan's GDP will continue to expand at a rate of 11.05% in 2026 and 6.04% in 2027. While India's GDP growth rate in the first two quarters of 2026 was 8.6% and 7.8%, respectively, the difference in their GDP is not that large - $4 trillion for India and $1 trillion for Taiwan.

TSMC, the world's largest manufacturer of semiconductor chips, plays a crucial role in Taiwan's growth. Its net revenue in 2026 is estimated at $175 billion, which is 43% higher than last year. TSMC's contribution to Taiwan's GDP is estimated at 8.9%, with net revenue accounting for almost half of the country's growth rate.