Taiwan is emerging as the stronger bet in the AI trade over South Korea as the year winds down. In the first half of 2026, South Korea exported $496.3 billion in goods, outpacing Taiwan at $416.6 billion, with both economies surpassing Japan’s $384.4 billion. Integrated circuits represent about 30% of total exports for both countries, but AI chips now account for roughly 80% of Taiwan’s exports compared to over 40% for South Korea. Taiwan’s real GDP grew 8.63% in 2025, with per-capita GDP reaching approximately $39,477, putting it ahead of South Korea for the first time in 22 years. Both economies remain exposed to rising geopolitical risks and overreliance on AI-linked sectors.
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