Taiwan's Economy
Taiwan at a Glance
An overview of Taiwan's economy - its high-tech exports, income levels and outsized role in global semiconductor supply chains.
Taiwan has about 23 million people.
A tech powerhouse
- Taiwan produces the large majority of the world’s most advanced semiconductors, mostly through TSMC.
- Electronics and ICT products dominate exports.
Income
Taiwan’s income per person rose to levels comparable with many rich countries, especially in purchasing power terms.
Trade
- Major markets: China (including Hong Kong), the US and Southeast Asia.
- AI server demand boosted exports strongly in 2024-25.
Structure
- Manufacturing is a large share of the economy.
- Many small and medium firms alongside giants.
History
Taiwan was one of the “Four Asian Tigers” with South Korea, Hong Kong and Singapore.
Political status
Taiwan’s international status is disputed with China, adding geopolitical risk.
The phone inside
The processor chip in many smartphones and AI servers around the world was made in a TSMC fab in Taiwan.
Thinking a small island can't matter much globally
Taiwan makes most of the world's advanced chips.
Key takeaways
- Taiwan has about 23 million people.
- It makes most of the world's advanced chips.
- Electronics dominate exports.
- It was one of the Four Asian Tigers.
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