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Taiwan is carrying an AI-fueled GDP growth forecast of 11%, a rate that economists say is unlikely to prove sustainable.
The concern centers on a structural feature: an economy whose output is heavily indexed to semiconductor demand holds its sector concentration regardless of how fast the demand cycle runs, and that concentration is what economists are now flagging as the binding constraint.
Concentration as the constraint The mechanism behind the caution is how tightly Taiwan's economic output tracks global semiconductor cycles.
Artificial intelligence infrastructure buildout has driven demand for advanced chips, and that demand pushed the headline growth figure to 11%. The underlying concentration, however, remains unchanged.
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