On its path to Taiwan, Gaemi had also exacerbated seasonal rains in nearby Philippines, triggering flooding and landslides that killed six.
The superstorm hit Taiwan's eastern Yilan County at around 12:00 am local time Thursday (1600 GMT Wednesday), said the Central Weather Administration.
"Wind and rain continue to intensify, posing a threat to various parts of Taiwan, (and its outlying islands of) Penghu, Kinmen, and Matsu," it said, calling on the public to "be on high alert".
The first typhoon to make landfall in Taiwan this year, Gaemi was "expected to be the strongest" one in eight years, a government forecaster told AFP.
It had caused downpours and strong gusts across Taiwan before its arrival, killing one motorist in southern Kaohsiung city who was crushed by a falling tree, and a woman in eastern Hualien, authorities said.
More than 200 people were injured by Wednesday evening, while more than 290,000 homes were plunged into darkness due to power outages, disaster officials said.
The weather also forced the self-ruled island to cancel some of its annual Han Kuang war games -- which test preparedness for a Chinese invasion -- though an anti-landing drill went ahead as scheduled on Wednesday morning on Penghu, west of Taiwan's main island.
By 8:00 pm (1200 GMT) on Wednesday, authorities had evacuated more than 8,000 people living in precarious conditions across Taiwan, particularly in Hualien -- a mountainous area with a high risk of landslides.
Trains and ferry services were suspended and hundreds of international and domestic flights were cancelled on Wednesday.
"We expect that the impact of the typhoon will be extended to four days (until Friday)," said Taiwan's Central Weather Administration chief Cheng Jia-ping.
Schools and offices will remain closed for the second day in a row in several cities -- including Taipei -- with authorities expecting adverse weather to continue across the island.
Gaemi is expected to make its way across the strait later today and hit China's eastern Zhejiang and Fujian provinces, where authorities have issued a red storm alert.
- 'Exercise strong vigilance' -
Gaemi swept past the Philippines, intensifying monsoons that were typical this time of the year and triggering widespread flooding in Manila that turned streets into rivers.
Landslides killed six in provinces surrounding Manila, police and disaster officials said.
Weather authorities in Japan's southern island region of Okinawa urged residents to "exercise strong vigilance" against storms, high waves and floods.
Massive waves crashed ashore in Taiwan's northeastern Yilan county, while strong gusts whipped the rain sideways and sent signs flying.
A fisher surnamed Hsu tied down his boat at a typhoon shelter in a harbour crowded with docked vessels.
"I am worried about the typhoon -- the boats are my tool for making money," he told AFP.
Government offices were closed and streets emptied in the capital Taipei, while some stores had their entrances sandbagged to prevent potential floodwater.
Taiwanese chip giant TSMC, the world's largest chipmaker, said it would maintain normal production and that it had "activated routine typhoon alert preparation procedures" at all fabrication plants.
Taiwan is accustomed to frequent tropical storms from July to October but experts say climate change has increased their intensity, leading to heavy rains, flash floods and strong gusts.
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