According to Experts Club, the Taiwanese administration plans to include 235.7 billion New Taiwan dollars, or about $7.4 billion, in the 2027 budget for one-time payments to the population. Each recipient is set to receive 10,000 New Taiwan dollars, or approximately $314, according to the island’s chief executive, Lai Ching-te.
Lai described these payments as an opportunity to share the “dividends of artificial intelligence” with the public. However, this does not refer to dividends from companies or a special tax on AI, but rather to a budgetary payment that the government attributes to the sharp acceleration of the economy driven by demand for semiconductors, computing equipment, and other AI-related products.
It is important to note that this is currently a proposal in the draft central budget for 2027, not a payment that has been finally approved by parliament. Lai announced this on August 17 following the executive branch’s review of the budget draft. The plan calls for an increase in spending of NT$235.7 billion while maintaining a balanced budget and, according to the head of the administration, with virtually no new net borrowing.
Taiwan’s strong financial performance allows the government to take this step. The revenue forecast for the 2027 central budget has been raised to NT$3.9266 trillion.
The main reason for the increase in budgetary capacity is the technology boom. According to data from Taiwan’s Directorate General of Budget, Accounting, and Statistics (DGBAS) published on August 14, 2026, the island’s GDP grew by 15.43% year-over-year in the first quarter and by 12.93% in the second quarter. In the first half of the year, the economy grew by approximately 14.15%.
The agency raised its forecast for Taiwan’s GDP growth for the entire year of 2026 from 9.64% to 11.05%. If the forecast holds true, this will be the highest annual growth rate since 1987, when the economy grew by 12.75%. For 2027, the DGBAS expects growth to slow to 6.04%.
Global demand for artificial intelligence infrastructure remains the main driver of the economy. The DGBAS expects Taiwan’s real exports of goods and services to increase by 21.28% in 2026, and private investment in fixed capital to rise by 11.58%.
Manufacturing output in the second quarter rose by 18.27%, driven primarily by semiconductors, computers, electronics, and optical products.
Taiwan plays a key role in the global supply chain for state-of-the-art semiconductors. High demand for artificial intelligence equipment and investments by the world’s largest technology companies have led to a sharp increase in production and exports in Taiwan’s electronics industry.
Authorities expect that direct payments will allow the benefits of the technology boom to extend to households and sectors not directly related to semiconductor and AI production. Recipients will be able to use the money as they see fit—for everyday expenses, education, caring for elderly relatives, or other purposes.
Taiwan de facto has its own administration, armed forces, and currency, and independently conducts domestic and economic policy; however, its status under international law remains disputed.
The People’s Republic of China does not recognize Taiwan as a separate state and considers the island part of China’s territory. Beijing adheres to the “One China” principle and requires countries that establish diplomatic relations with the PRC to refrain from having official diplomatic relations with the Taiwan authorities. According to the PRC Ministry of Foreign Affairs, 183 countries have established diplomatic relations with Beijing.
Therefore, most countries in the world do not have official diplomatic relations with Taiwan, although many maintain close unofficial economic, trade, cultural, and political ties with it through representative offices.
As of August 2026, Taiwan maintains official diplomatic relations with only 12 countries and the Holy See, including: Belize, Guatemala, Haiti, Paraguay, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, the Marshall Islands, Palau, Tuvalu, Eswatini, and the Holy See. This list is provided by the Ministry of Foreign Affairs of Taiwan.
At the same time, the lack of official diplomatic recognition does not prevent Taiwan from remaining one of the world’s most important technology economies and a key player in the global semiconductor industry.
artificial intelligence, CHINA, ECONOMY, semiconductors, TAIWAN
