The analyst expects the construction industry in Taiwan to expand by 3.6% in real terms in 2026, before registering an annual average growth rate of 3.9% from 2027 to 2030, supported by investments in transport infrastructure, renewable energy, and semiconductor manufacturing plants, amid growing demand for artificial intelligence (AI). TaiwanSemiconductor Manufacturing Co (TSMC), which is the world’s largest chip manufacturer, recorded a revenue of over TWD1.1 trillion ($38.4 billion) in the first quarter of 2026, marking a year-on-year (YoY) growth of 35%; this surge was driven by sustained demand for advanced semiconductors and AI chips from TSMC’s key customers such as the American technology companies Apple and Nvidia; increasing investments in AI infrastructure and data centres; rising adoption of advanced chip technologies; and growing demand from technology firms developing their own AI-focused semiconductor chip internally.
Industry growth in 2026 will also be supported by investments as part of Taiwan’s 2026 Budget, which was announced in August 2025. Notably, the budget includes an expenditure of TWD3.0 trillion ($103.1 billion), which is 3.8% higher than the expenditure of TWD2.9 trillion ($99.4 billion) earmarked in 2025. Of the total expenditure earmarked for 2026, TWD556.6 billion ($18.9 billion) has been allocated for education, science and culture; TWD548.8 billion ($18.7 billion) for defense; TWD427.5 billion ($14.5 billion) for economic development affairs; and TWD302.6 billion ($10.3 billion) for general public services. The budget includes an allocation of TWD670.4 billion ($22.8 billion) for key public infrastructure to promote balanced regional development; TWD203.1 billion ($6.9 billion) to strengthen forward-looking technological planning to facilitate inclusive industrial transformation and upgrading; TWD105.5 billion ($3.6 billion) to enhance climate change adaptation measures; and TWD31.1 billion ($1.1 billion) for ten new major AI infrastructure projects. The Ministry of Economic Affairs reported in January 2026 that three government incentive programs, which were launched in 2019 to encourage local and foreign investments, have attracted TWD2.6 trillion ($89 billion) in combined investments pledges from 1712 companies and created over 164,500 jobs.
Industry growth in 2026 will also be supported by investments as part of Taiwan’s 2026 Budget, which was announced in August 2025. Notably, the budget includes an expenditure of TWD3.0 trillion ($103.1 billion), which is 3.8% higher than the expenditure of TWD2.9 trillion ($99.4 billion) earmarked in 2025. Of the total expenditure earmarked for 2026, TWD556.6 billion ($18.9 billion) has been allocated for education, science and culture; TWD548.8 billion ($18.7 billion) for defense; TWD427.5 billion ($14.5 billion) for economic development affairs; and TWD302.6 billion ($10.3 billion) for general public services. The budget includes an allocation of TWD670.4 billion ($22.8 billion) for key public infrastructure to promote balanced regional development; TWD203.1 billion ($6.9 billion) to strengthen forward-looking technological planning to facilitate inclusive industrial transformation and upgrading; TWD105.5 billion ($3.6 billion) to enhance climate change adaptation measures; and TWD31.1 billion ($1.1 billion) for ten new major AI infrastructure projects. The Ministry of Economic Affairs reported in January 2026 that three government incentive programs, which were launched in 2019 to encourage local and foreign investments, have attracted TWD2.6 trillion ($89 billion) in combined investments pledges from 1712 companies and created over 164,500 jobs.
The Construction in Taiwan - Key Trends and Opportunities to 2030 (H1 2026) report provides detailed market analysis, information, and insights into the Taiwanese construction industry, including:
- The Taiwanese construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Taiwanese construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Taiwan. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in Taiwan, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
