Taiwan's GDP increased by 6.51% from the previous year in the first quarter of 2024, outpacing South Korea's 3.4% and Singapore's 2.7%, thanks to exports of AI chips and AI servers.
Taiwan's exports supporting the AI boom helped it sit firmly at the top of the Four Asian Tigers in the first quarter, economic analysts said. Taiwan's first-quarter 2024 GDP increased by 1.13% compared to the previous quarter, according to the Directorate-General of Budget, Accounting and Statistics (DGBAS).
Net demand from the rest of the world contributed 5.46 percentage points to Taiwan's economic growth in the first quarter, DGBAS figures show. Exports of goods and services grew by 12.91% year-on-year in US dollars, and 16.25% in Taiwan's currency in the first quarter.
Except for those enjoying the strong AI momentum, other makers' exports were weak during the quarter, according to industry observers. At a Central Bank meeting held on May 2, economics minister Wang Mei-hua was opposed to the idea of raising interest rates that would heap pressure on exporters, the observers said.
On the same day, Taiwanese President Tsai Ing-wen attended a ceremony Powerchip held to unveil its new semiconductor plant in Tongluo, northern Taiwan.
Tsai stressed that the semiconductor industry represents its past, present, and future for Taiwan. In the second half of 2023, Taiwan's semiconductor industry saw its output reach NT$4.3 trillion (US$132.08 billion) and employ more than 250,000 people. It is the driving force of Taiwan's economy and innovations.
Article translated by Rodney Chan
