New National Drive to Transform Into an "AI Island"
Taiwan is embarking on an ambitious path with a sweeping national AI program aimed at generating $510 billion in economic activity by 2040. Unveiled by top government agencies, the initiative draws from Taiwan’s past successes in technology infrastructure and signals a strategic leap into the future, positioning the island as a pivotal force in the global artificial intelligence landscape
[Reuters].
The "AI New Ten Major Construction" Plan
A central pillar of this transformation is the "AI New Ten Major Construction" plan, which echoes the historical legacy of Taiwan’s renowned infrastructure boom in the 1970s. With a budget of approximately NT$200 billion (around $6.2 billion USD), this initiative is designed to foster artificial intelligence growth across all sectors, from manufacturing and services to public infrastructure and research
[TechSoda].
- Large-scale investment over four years (2025-2028).
- Co-led by the National Development Council and the National Science and Technology Council.
- Intended to position Taiwan as a global AI leader and accelerate adoption in every industry.
Technological Focus Areas
The plan identifies several cutting-edge technologies as priorities for development, including:
- Silicon photonics
- Quantum computing
- Advanced AI robotics
These areas are expected to underpin Taiwan’s efforts to become an essential part of the worldwide AI value chain.
Economic and Industrial Impact
Taiwan’s government forecasts that, alongside its world-leading
semiconductor and high-tech hardware industries, these AI investments will stimulate robust economic growth. Official projections for 2025 indicate a GDP growth rate of
3.1%, attributed largely to the expansion of AI-driven sectors and a thriving export market
[AInvest].
Key companies like
Taiwan Semiconductor Manufacturing Company (TSMC) dominate global chip production for AI servers, with support from international innovators such as Asustek and NVIDIA. Private investment in AI infrastructure is forecast to rise markedly as a result.
Legal and Policy Environment
Taiwan has set a benchmark goal of surpassing NT$1 trillion in digital economy value by 2026, with efforts coordinated by the Ministry of Digital Affairs and the National Development Fund. Strategic actions include:
- Funding for startups and AI projects.
- Building energy-efficient data centers and advancing low-energy AI solutions.
- Seeking international partnerships to leverage global expertise.
The government is also beginning to address potential ethical and legal ramifications, such as
AI fairness and
discrimination, recognizing that responsible development is key to public trust and sustainable progress
[GLI].
AI Tools Fueling Transformation
Prominent AI tools, including
ChatGPT and advanced robotics software, are set to play foundational roles in research, industry, and daily life, supporting innovation and new business models across Taiwan.
Looking Ahead
With its strategic investment and cohesive vision, Taiwan is not only reinforcing its status as a global technology hub but also setting a course for a future where artificial intelligence is deeply woven into the fabric of its economy and society. As the “AI Island” vision advances, Taiwan’s blend of government initiative, industrial might, and tech innovation is poised to deliver transformative impact for decades to come.
Building energy-efficient data centers and advancing low-energy AI solutions.
Building energy-efficient data centers and advancing low-energy AI solutions.
