Catenaa, Saturday, February 14, 2026-Bank of America nearly doubled its forecast for Taiwan’s economic growth in 2026, citing sustained global demand for artificial intelligence hardware after a standout expansion last year.

The bank raised its projection for Taiwan’s gross domestic product growth to 8 percent from 4.5 percent, according to a research note issued Tuesday by analysts including Xiaoqing Pi.

The revision follows a surge in activity tied to the global buildout of AI infrastructure, where Taiwanese firms play a central manufacturing role.

Taiwan’s economy expanded 8.63 percent in 2025, its fastest pace since 2010, driven by strong exports of semiconductors, advanced chips and related components.

That momentum has carried into early 2026 as cloud providers, chip designers and device makers continue to invest heavily in AI capacity.

The upgraded outlook adds to a series of optimistic revisions by global banks that had already expected growth to cool after last year’s sharp acceleration.

Instead, demand for servers, high-end processors and networking equipment has remained firm, supporting factory output and export orders.

Taiwan Semiconductor Manufacturing Co. and other major suppliers remain key beneficiaries of the trend, as customers push to secure leading-edge chips amid tight capacity and long lead times.

Analysts see spillover effects across equipment makers, materials suppliers and logistics firms.

While the outlook is stronger, risks remain. Taiwan’s trade-heavy economy remains exposed to shifts in global demand, technology cycles and geopolitical tensions in the region.

Any slowdown in AI investment or disruptions to supply chains could temper growth later in the year.

For now, Bank of America said the scale and persistence of AI-related demand suggest growth will remain elevated through 2026.