📈 Semiconductors, the Engine of Taiwan’s Export Growth Since 2010

Semiconductors—integrated circuits and data processing units—have become the primary driver of Taiwan’s export growth since 2010. While exports of other goods have remained relatively flat, semiconductor exports have surged—especially since 2022, fueled by rising global investment in artificial intelligence and booming shipments to the United States.

From 2010 to April 2025 (LTM), semiconductor exports grew by 430%, rising from $50 billion to $267 billion. In contrast, exports of non-semiconductor goods averaged around $239 billion over the period and stood at $239 billion in April 2025 (LTM). Since late 2024, semiconductor exports have surpassed all other goods for the first time. As a result, semiconductors now make up 53% of Taiwan’s total exports—up from just 18% in 2010.

Taiwan has emerged as a dominant force in the global semiconductor supply chain, accounting for over 60% of global foundry revenue and more than 90% of advanced chip production through TSMC. This global leadership has made Taiwan’s export profile increasingly dependent on the performance and strategic positioning of the semiconductor sector.

 However, the sharp rise in semiconductor exports has also significantly increased Taiwan’s export concentration, heightening vulnerability to cyclical downturns in the tech industry or disruptions in major markets such as the U.S. and China. Key inflection points include the U.S. CHIPS and Science Act of 2022—which incentivized domestic semiconductor production and increased demand for Taiwanese chips—and the 2023–2024 escalation in U.S.-China tech tensions, which further constrained Taiwan’s exports to the Chinese market.

Looking ahead, Taiwan’s export trajectory will likely be shaped by three key forces: (1) sustained U.S. investment in semiconductors, coupled with protectionist trade policies; (2) China’s drive to build a self-sufficient semiconductor ecosystem amid intensifying U.S. export controls; and (3) a slowdown in Taiwan’s own chip investment—especially by TSMC—due to geopolitical uncertainty and shifting global production strategies. These dynamics will have far-reaching implications for Taiwan’s export-driven economy.

Meanwhile, the global rollout of generative AI, autonomous systems, and edge computing continues to fuel demand for high-performance chips—sectors where Taiwan maintains a competitive edge.