Taipei: Taiwan is anticipated to achieve its most substantial economic growth in 15 years, driven by increasing global demand for AI technology, as stated by Academia Sinica. The leading academic research institute in Taiwan has projected a 7.41 percent growth rate for 2025, marking an increase of 4.48 percentage points from its July forecast.According to Focus Taiwan, this growth rate surpasses all recent projections by major research institutions both domestically and internationally. It exceeds the 7.40 percent forecast by the Cathay Financial Holdings-National Taiwan University research team and the 7.20 percent prediction by J.P. Morgan. Peng Shin-kun, a distinguished research fellow at Academia Sinica, attributed this projected high to the expansion of the semiconductor and ICT sectors.The prediction follows reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, plans to establish three additional 2-nanometer process factories in southern Taiwan. Earlier, Nvidia's founder Jensen Huang visited Taiwan to secure an increased chip supply.However, Peng warned that this strong growth conceals a notable decline in traditional industries. Academia Sinica also mentioned that the projection is contingent on various factors, including U.S. currency and trade policies, geopolitical changes, supply chain shifts, and the continuous development of AI and other emerging technologies.When asked about the sustainability of the AI market's momentum, Academia Sinica economist Lin Chang-ching commented that the duration of the boom depends on the effective integration of AI into different sectors to create a comprehensive "AI industry." Growth is expected to persist into 2026, although a high comparison base is likely to moderate the annual growth rate to 3.71 percent, according to the institute.