Taiwan’s government raised its 2026 economic growth forecast to 9.64% on May 29. This projection marks a 16-year high driven by surging demand for artificial intelligence technologies.
The upgrade directly benefits Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and a key supplier for Nvidia and Apple. TSMC is now prioritizing energy efficiency to address rising electricity consumption from AI hardware expansion. The company aims to significantly reduce power usage in future chip generations to meet evolving requirements for sustainable performance.