Gaming News

Taiwan's Central Bank Governor Warns of AI Sector Bubble

July 10, 2026Pablo Navarro1 мин

Yang Chin-long, the Governor of Taiwan's Central Bank, stated before Parliament today that while the growth driven by Artificial Intelligence (AI) is genuine, the entire sector is at risk of forming a bubble.

AI has become Taiwan's primary economic engine. However, according to Reuters, the central bank will maintain a close watch on the risks associated with speculative investments, particularly those financed by the "aggressive" borrowing of technology companies.

During the central bank's quarterly meeting in June, its board did not consider the inflationary pressures stemming from the AI surge sufficient to warrant an interest rate hike, although the decision to keep rates unchanged was not unanimous. Following a reassessment of sector volatility, it appears the central bank governor's perspective has shifted, or at least taken a more cautious turn.

Jensen Huang, the CEO of Nvidia, frequently visits the island, a major hub for AI chip manufacturing. He remains optimistic about future prospects, notwithstanding the soaring cost of raw materials.