By the end of the day, the young engineer, who wishes to remain anonymous, had signed a purchase agreement for a 120 square meter apartment worth 20 million NT$ (630,000 US dollars) – his second apartment.

“It is the best way to invest. My income will grow even faster in the next few years, and that applies to many others as well, so the value of the property will increase,” said Peter, who works at Quanta Computer, an electronics manufacturer in close proximity.

Fuyu Fuyu means "giving wealth" in Mandarin – and that is exactly what Quanta does. As the world's largest contract manufacturer of laptops, Quanta benefits immensely from the global AI boom, since the company also produces high-end servers needed for processing large language models. Quanta's stocks and profits have risen, and the employees benefit from this.

The founder and chairman Barry Lam has been Taiwan's richest man since April, according to Forbes.

The employees will share cash bonuses totaling 3.9 billion NT$ this year, an increase of 30% compared to 2023.

Quanta is just one of many companies that bolster Taiwan's reputation as a global center for technology and prosperity. UBS predicted last week that Taiwan will have 47% more millionaires by 2028 compared to today – the largest increase worldwide, mainly driven by the growth of the semiconductor industry.

Investors, economists, and human resource experts say that the benefits are not only reaching the executives and engineers at Taiwan's largest technology companies, who benefited from stock grants in the early days of the chip sector, but are also reaching a broader segment of the population.

Mark Duh, Chairman of Fuh Hwa Investment Trust, one of the largest domestic asset managers, says: "There is a broader wealth effect, and new groups and younger talents are benefiting from it.

The titan of the industry – and one of the main drivers of increased prosperity – is Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip manufacturer, which is now the most valuable publicly traded company in Asia. TSMC reported a 40% increase in revenue in the second quarter last week.

But hundreds of other Taiwanese companies, which dominate the AI supply chain – from chip design houses and server manufacturers to suppliers of chip testing equipment and component manufacturers – are also benefiting from the boom.

Many employees in senior and mid-level positions in the AI supply chain received bonuses last year that exceeded two years' salaries.

Winway, a provider of chip testing products, paid its employees bonuses equivalent to 30 months' salary. The median salaries of non-executive employees at Global Unichip, a semiconductor design house, increased by one-fifth last year, marking the third consecutive annual rise. The company has recorded double-digit growth rates in total salary expenses for three consecutive years.

The AI boom is just the latest boost for Taiwan's prosperity. During the pandemic, the country's massive electronics industry benefited from the semiconductor and IT boom triggered by the demand for remote work. The rise of electric vehicles has further fueled demand.

Taiwan's first generation of post-war entrepreneurs is transferring their wealth to their children.

Many wealthy Taiwanese who used to spend most of their time in China are returning home due to the worsening investment climate and pressure from their clients to diversify risks.

The rising salaries are also boosting domestic consumption. Ferrari doubled its sales in Taiwan over the last four years, indicating a boom in high-end consumption.

People are investing their increasing salaries in real estate. The real estate market is growing rapidly, which in turn benefits other industries," says Duh.

Construction companies and building material manufacturers recorded the highest salary increases for non-executive employees last year.

The labor shortage in Taiwan, which has a shrinking population, is driving up wages even in low-paid service sectors. Wages in the hotel and restaurant industry have increased by 5.5% this year, the largest increase in at least a decade.

Lai Wei-wen, labor economist at the Chung Hwa Institution for Economic Research, says: "I believe the main reasons for the increase in wages in the tourism sector are the post-pandemic travel boom and the labor shortage.

In the January elections, young people frustrated by low entry-level salaries and the growing gap between top earners in the tech industry and the service sector turned away from the ruling Democratic Progressive Party, resulting in its loss of the parliamentary majority.

Sure, here is the translation of the heading:

"Money invested in real estate by high-earning tech employees drives property prices up, making them unaffordable for younger workers in other industries. A residential property now costs an average of ten times an annual salary, compared to 8.6 times four years ago.

A government official still hopes for a broader distribution of wealth "At least we see a change. The AI boom is our best hope for deepening prosperity.