South Korea, Taiwan overtake Japan in exports for first time on AI chip boom

During the first half of 2026, South Korea and Taiwan each surpassed Japan in total exports for the first time, marking a historic reordering of export rankings among the three East Asian economies. The Nikkei analysis pinpoints the cause: both South Korea and Taiwan are benefiting more from surging demand for semiconductors in the first half of 2026. South Korea's SK Hynix is among the few companies globally that produce advanced semiconductors, positioning the country to capture disproportionate gains from the AI boom. As demand for semiconductor infrastructure accelerates worldwide to support AI systems, the competitive advantage has shifted toward the nations whose chipmakers can supply these critical components. Japan, traditionally a dominant exporter, has lost its top position as the semiconductor-heavy export baskets of South Korea and Taiwan grow faster in the current environment.