Taiwan Draws NT$200 Billion Plan to Transform into AI Nation
The Taiwanese government is actively formulating an ambitious "AI New Ten Major Construction" plan, earmarking a substantial budget of approximately NT$200 billion(around US$6.2 billion) to comprehensively enhance Taiwan's global competitiveness in artificial intelligence and accelerate the AI-driven transformation across all industries. This pivotal initiative, jointly planned by the National Development Council (NDC) and the National Science and Technology Council (NSTC), is expected to be submitted to the Executive Yuan for final approval by the end of this month, laying the groundwork for Taiwan's national vision of becoming an "AI Island."
Historical Echoes: The 'Ten Major Construction Projects' Legacy
The naming of this initiative as "AI New Ten Major Construction" intentionally echoes Taiwan's seminal "Ten Major Construction Projects" (十項建設) of the 1970s. Those original projects, launched during a critical period of economic development, focused on large-scale infrastructure, including highways, railways, airports, and industrial complexes. They were instrumental in modernizing Taiwan's economy and transforming it into a vibrant industrial powerhouse. By invoking this historical precedent, the government signals the profound ambition and national significance it attaches to the current AI plan, positioning it as a new era of transformative development for a "smart" Taiwan.
NT$200 Billion Budget and Multi-Billion Dollar Investment Catalyst
This bold plan anticipates an investment of at least NT$190 billion (US$5.9 billion) over the next four years (2025-2028), with a significant expansion of approximately NT$ 90 billion (around US$2.8 billion) coming from science and technology budgets, public construction budgets, and the National Development Fund. The National Development Fund will play a crucial role as a "catalyst," establishing 10 thematic funds, each worth tens of billions of NT dollars.
Currently, seven major themes have been confirmed: small and medium-sized enterprises, strategic services, manufacturing, cultural and creative industries, green growth, AI, and robotics. Two additional areas, sports and healthcare, are actively being prepared, with full deployment of all funds expected within the year to support AI innovation across various ministries and industries, according to local media reports.
Three Smart Applications, Three Key Technologies, and Four Foundational Infrastructures
The "AI New Ten Major Construction" encompasses three smart applications, three key technologies, and four foundational infrastructures, aiming for a comprehensive and balanced approach to AI development:
Three Smart Applications:
Building a Trillion-Dollar Scale "Platform Software Industry": Centered on smart city system solutions, this aims to export Taiwan's software capabilities globally and research relevant policy incentives.
Promoting AI Adoption in Millions of Enterprises: Encouraging millions of businesses to adopt AI technologies to accelerate digital transformation, industrial upgrading, and create new trillion-dollar industries.
Fostering a "Nationwide Smart Living Circle": Integrating AI technology into daily life to address societal challenges such as an aging population and declining birth rates, implementing various convenient solutions like smart healthcare and smart transportation.
Three Key Technologies: These are indispensable core components for future AI development and are considered key drivers for Taiwan's next wave of technological growth.
"Silicon Photonics": Establishing a new "sacred mountain" industry (a term often used to describe Taiwan's semiconductor industry) to solidify Taiwan's critical position in global AI advanced packaging, with national-level laboratories to be built.
"Quantum Technology": Aiming to establish one of Asia's top three quantum computing centers and invest in national-level quantum research laboratories.
"Smart Robotics": Leveraging Taiwan's globally strongest ICT supply chain to develop the nation into a major global robotics supply chain hub.
Four Foundational Infrastructures: Integrating various sectors including transportation, healthcare, education, culture, and utilities to ensure that the benefits of AI are accessible across all regions, promoting balanced regional development. These include:
Sovereign AI and Computing Power: Through public-private partnerships, building national computing power infrastructure with the goal of climbing from Asia's fourth to second in this domain.
Cultivating AI Talent: Investing NT150billion(approximatelyUS4.6 billion) annually to establish an "innovation and entrepreneurship rainforest ecosystem."
Smart Government and Data Governance: Improving relevant regulations and constructing Taiwan's sovereign AI training corpus.
Balanced Regional AI Development: Enabling industries in various regions to create high-value, high-salary job opportunities.
Charting the Future Together: Collaboration Across Sectors
During the planning process, the National Development Council reportedly convened multiple cross-ministerial discussions and consulted with leading domestic enterprises such as TSMC, Hon Hai (Foxconn), Asus, and ASE Technology Holding. This collaborative approach aims to ensure the plan effectively aligns with industry needs and jointly positions Taiwan for future business opportunities. Premier Cho Jung-tai recently stated that in response to the AI wave, Taiwan aims to become a global center of AI influence. The "AI New Ten Major Construction" is a critical step towards realizing this vision.
Legislative Hurdles: The Stalled AI Basic Law
While the executive branch drives forward with ambitious AI development plans, legislative progress on foundational AI governance remains bogged down. Discussions surrounding an "AI Basic Law" proposal are once again facing delays in the Legislature. KMT Legislator Ko Ru-chun expressed his frustration on Facebook, saying that an initial draft of an AI Basic Law was proposed as early as 2019 by then-KMT legislator Hsu Yu-jen (Jason Hsu), but unfortunately failed to pass review at the time. With the rapid global expansion of generative AI in 2024, the KMT has once again proactively put forward a proposal, demonstrating an intent for forward-looking deployment.
Ko emphasizes that while countries like the European Union, the United States, South Korea, and Japan have all established AI-related regulations, Taiwan lacks any overarching legal framework. This not only impacts international cooperation and trust but could also lead to chaotic applications and disorderly domestic industrial development. Ko warns that without proper AI regulations, Taiwan's citizens would be "running naked in the AI wave," potentially encountering opportunities (like schools of fish) but lacking the tools to seize them, or facing major threats (like great white sharks) without the means to protect themselves. He stressed that AI must not be hijacked by ideology or become a tool for political wrangling, as this would only cause Taiwan to fall behind globally and miss opportunities for industrial upgrading.
Ko further emphasized that the current legislative effort for the AI Basic Law is not solely about preventing risks but also about promoting development, aligning with international standards, and implementing digital equity to ensure Taiwan's presence in the AI era. The draft version proposed by his office in collaboration with the KMT think tank focuses on four key points:
Development-oriented: Moving beyond a "prevention-only" approach to actively promote AI growth.
International Alignment: Establishing a risk-tiering mechanism in line with global practices.
Data Openness: Strengthening sovereign and traditional Chinese language data training corpora.
Digital Equity: Ensuring care for vulnerable groups and addressing regional disparities.
NDC Minister Liu Ching-chung emphasized that AI will be ubiquitous in the future. The ultimate goal of the AI New Ten Major Construction plan is to secure Taiwan's pivotal position in global AI competition and fulfill the national vision of building an "AI Island," allowing AI to comprehensively drive Taiwan's innovation and growth.