Taiwan Launches Ambitious Plan for AI Industrial Future

To accelerate AI convergence in Taiwan’s industrial sector, the Ministry of Economic Affairs (MOEA) announced plans to leverage the Trustworthy AI Dialogue Engine (TAIDE), Taiwan’s proprietary open-source model, along with industry-specific data. This initiative aims to develop AI application models tailored to 10 key industries—including metal machinery, healthcare, and business services— with a target of 50% AI adoption in manufacturing by 2028 and the cultivation of 200,000 AI specialists.

According to the MOEA's recent report to the Legislative Yuan, Taiwan intends to seize the upcoming five-year window of AI advancement to secure its role as a central player in the global supply chain. The MOEA is focusing on enhancing the semiconductor and AI sectors and facilitating the dual transformation of small-and medium-sized enterprises (SMEs) toward digital and net-zero operations, balancing growth with sustainability.

Also, to counter price-driven competition from China's mature processing technology, the MOEA is accelerating the development of high-performance AI chips, heterogeneous integration, and silicon photonics (SiPH). Plans also include the establishment of semiconductor testing lines to provide customized validation and trial production platforms, with the aim of achieving a top-two global rank in IC design within five years.

On advanced chip processing, the MOEA outlined its strategy to channel R&D subsidies into the domestic industry, pushing Taiwan toward global leadership in chip design and development. This year, the IC design sector’s share in advanced process output is projected to grow from 39% to 43%. The MOEA also plans to encourage foreign tech firms to establish operations in Taiwan, bringing critical semiconductor and AI technologies, collaborating with local firms on R&D, and introducing overseas expertise. The goal is for international talent to comprise at least 50% of the workforce, reinforcing Taiwan's AI talent base and driving innovation.