<div id="readability-page-1">TAIPEI, Jan 30 : Taiwan's tech-focused economy grew much more than expected in the fourth quarter, the government statistics agency said on Friday, thanks to strong demand for the chips and related technologies that power artificial intelligence. For all of 2025, the economy expanded 8.63 per cent, its fastest pace since 2010, when it grew 10.25 per cent. Taiwan plays a pivotal role in the global AI supply chain for companies like Nvidia and Apple. Its position is anchored by the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co,. Gross domestic product grew a preliminary 12.68 per cent in the October-to-December period from a year earlier, the statistics agency said, surpassing the 8.5 per cent growth forecast by analysts in a Reuters poll, as well as 8.2 per cent in the third quarter. &#34;Demand for applications such as AI and high-performance computing far exceeded expectations,&#34; the agency said in a statement. Taiwan's economy has made big strides, supported by its role as a major producer of advanced semiconductors that power AI and it has largely brushed off the impact of 20 per cent U.S. tariffs, though they excluded chips. Washington agreed this month to cut that to 15 per cent as part of a broad trade and investment deal.</div>

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<p>Taiwan's economy grew 12.68% in Q4, surpassing forecasts of 8.5%, driven by strong AI-related chip demand. For 2025, growth reached 8.63%, the fastest since 2010. Taiwan's pivotal role in the global AI supply chain, supported by Taiwan Semiconductor Manufacturing Co., has helped it withstand U.S. tariffs, which are set to decrease from 20% to 15% as part of a trade deal.</p>

- Taiwan's technology-driven economy experienced unexpected growth in the fourth quarter, largely due to strong demand for AI-related chips and technologies.  
- The government reported an annual growth rate of 8.63% for 2025, marking the fastest increase since 2010, supported by key players like TSMC in the global AI supply chain.  
- GDP rose by 12.68% year-on-year from October to December 2023, exceeding forecasts, while the demand for applications in AI and high-performance computing significantly outpaced expectations.

Taiwan Q4 economic growth beats forecasts on solid AI demand