Taiwan’s central bank governor, Yang Chin-long, has warned of the risks of an AI bubble, citing concerns over speculative capital expenditures financed by aggressive corporate borrowing within the tech sector.
AI Boom in Taiwan
The AI boom has become a major driving force in Taiwan’s economy, with the central bank carefully monitoring the risks of over-expansion via over-leveraging. Governor Yang stated that while the growth driving the AI boom is real, so are the risks of an AI bubble.
Taiwan plays a crucial role in the global AI supply chain for tech giants, including Nvidia and Apple, anchored by chipmaker Taiwan Semiconductor Manufacturing Co (TSMC). TSMC has been leading Taiwanese stocks to record highs this year, with demand remaining high despite rising component costs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
