Taiwan’s economy is experiencing a dramatic surge fueled by its dominant position in global semiconductor manufacturing and the artificial intelligence boom. The Chung-Hua Institution for Economic Research (CIER) recently revised Taiwan’s 2025 GDP growth forecast upward to 5.45%, citing strong demand in semiconductors and AI driving investment and exports. However, this impressive growth has exposed a widening economic divide, with legislators arguing that gains are concentrated almost entirely in the electronics, AI, and memory sectors while traditional industries struggle to keep pace.