Taichung Claims 21st Consecutive Season of Economic Dominance: AI, Demographic Dividend, and Festival Economy Drive Continued Growth

Taichung's economy continues to demonstrate strong growth momentum, achieving new records in multiple economic indicators driven by manufacturing expansion and active commercial investment. According to the latest statistics from the Ministry of Economic Affairs, in the second quarter of 2026 (115 Q2), Taichung City ranked first in five out of eight key metrics—including company and business registrations and capital amounts—marking the 21st consecutive quarter since Q2 2021 (110 Q2) that the city has secured at least four top national rankings. This sustained performance highlights Taichung’s robust industrial investment and commercial development.

Chang Feng-yuan, Director of the Economic Development Bureau, stated that compared to the same period last year, the number of company registrations in Taichung increased by 2,545, with capital growing by 7.34%. Business registrations rose by 3,068, with capital increasing by NT$780 million (2.94%). Sector-wise, the largest growth in company registrations occurred in professional, scientific, and technical services; finance and insurance; and construction. Manufacturing led in capital growth. For commercial registrations, construction, accommodation and food services, and wholesale and retail saw the most significant increases, with wholesale and retail topping capital growth. This reflects a dual-engine growth model driven by manufacturing expansion and commercial vitality.

Chang emphasized that Taichung’s strategic location, well-established industrial clusters, and continuous population growth—now nearing 2.87 million—have fueled rapid expansion in semiconductor, optics, precision machinery, and automation equipment industries, driven by rising demand for AI, high-performance computing, and advanced processes. This has led to simultaneous growth across manufacturing, services, and construction, creating a virtuous cycle of investment, production, employment, and consumption, showcasing Taichung’s economic resilience.

The benefits of economic growth are directly reflected in household income and tax revenue. According to Ministry of Finance data, Taichung’s comprehensive income tax rose from NT$33.5 billion in 2019 (108) to NT$60 billion in 2025 (114), an increase of nearly 80%. Business income tax grew from NT$55.9 billion to NT$74.2 billion (33% increase), ranking third among the six major cities in growth rate. According to the Directorate General of Budget, Accounting and Statistics, average household disposable income rose from NT$1.083 million in 2019 to NT$1.172 million in 2024 (113), an increase of approximately NT$90,000 over five years. The 2024 annual growth rate of 4.91% ranked first among the six cities, indicating that investment, infrastructure, and industrial upgrading are delivering tangible benefits to residents.

As of the end of June 2026, Taichung had 19,778 registered factories, maintaining the highest total among the six major cities. The number of new factories established since 2019 (108) is also the highest nationwide. Beyond new construction, companies are deepening investments through production line expansions and equipment upgrades. For example, Zhi Sheng Industrial invested NT$1.48 billion to acquire a factory in the Precision Technology Park, while Largan Precision made its third major investment in the Taichung Industrial Park, cumulatively investing nearly NT$2.6 billion in land and facilities—demonstrating strong corporate confidence in Taichung.

In addition to manufacturing, commercial investment continues to strengthen Taichung’s economic landscape. The Han Shen Intercontinental Shopping Mall opened in April, followed by the iFG Farglory Plaza Taichung in July, establishing new commercial hubs in central Taiwan. The Shuinan Mega Dome successfully completed its private operator selection, with an investment exceeding NT$50 billion, making it the largest sports-related BOT project in the country. Meanwhile, the Taichung International Exhibition Center has hosted 55 exhibitions, attracting nearly 1.7 million visitors and generating over NT$65 billion in business opportunities. Upon completion of its second phase, an additional 2,100 exhibition booths will be added, further boosting transportation, accommodation, dining, and tourism sectors.

The city government will continue enhancing competitiveness through diversified strategies, including investment promotion, festival economy, exhibition economy, and emerging industry development. The Economic Development Bureau is not only improving major infrastructure and the investment environment but also actively promoting emerging sectors like unmanned vehicles. Through international exchanges, forums, business matchmaking, and securing flight test zones, the city aims to help local industries capture global markets and inject new growth momentum into Taichung’s economy.

The Han Shen Intercontinental Shopping Mall, opened in April, has driven a consumption boom in Beitun District. (Photo: Taichung City Government)