Speaking at a parliamentary hearing, Governor Yang Chin-long told lawmakers that the AI boom has become a major driving force in Taiwan's economy, while warning that the central bank must carefully monitor the risks of speculative capital expenditures financed by aggressive corporate borrowing within the tech sector.

The Financial Policy Committee stressed that valuations ‘have also become more stretched’ amid concerns of a potential AI bubble.

The BIS warns that over $1 trillion in leveraged AI spending could trigger a credit market contagion, drawing dot-com parallels with implications for