TLDRs;
- Taiwan launches ten new AI infrastructure projects to strengthen global competitiveness by 2026.
- The plan targets quantum tech, silicon photonics, robotics, and smart applications with heavy government funding.
- Taiwan’s stock market, GDP growth, and employment rates hit multi-decade highs amid strong tech exports.
- Industrial production surges 14.4% year-on-year, fueled by record AI chip demand and semiconductor output.
Taiwan has unveiled an ambitious plan to cement its place as a global technology powerhouse through ten new artificial intelligence (AI) infrastructure initiatives.
Announced by President Lai Ching-te during his National Day address, the projects aim to elevate Taiwan into the world’s top five computing centers while driving innovation in quantum technology, silicon photonics, and robotics.
Lai emphasized that these initiatives form a “chain of guardian mountains”, a metaphor for the strategic pillars designed to fortify Taiwan’s industrial and technological capabilities. He underscored that the government will intensify research and development investments to secure the nation’s role in an increasingly AI-driven global economy.
Starting in 2026, ministries will begin allocating budgets for these projects, echoing Taiwan’s commitment to aligning with global AI trends such as those outlined in the U.S. AI Action Plan released earlier this year.
Major Investments in Core Technologies
According to Premier Cho Jung-tai, the ten AI initiatives will target smart applications, infrastructure foundations, and key technological frontiers. The plan includes significant financial commitments, amounting to hundreds of billions of Taiwan dollars, to expand the country’s computing power and AI ecosystem.
Key areas of focus include quantum computing, which promises breakthroughs in processing speed, silicon photonics, vital for next-generation data transmission, and robotics, where Taiwan seeks to enhance automation across industries. The projects are designed not only to strengthen domestic R&D capacity but also to attract international partnerships and capital inflows into AI and deep tech.
Securities analyst Boryi Chien noted that the plan could fuel sustained market momentum across multiple sectors, including AI-related industries, aerospace, networking, and defense technologies. Chien added that policy benefits may continue to attract investors toward companies showing strong September revenue growth.
Taiwan’s Economy Surges Ahead
The AI push comes amid a period of economic strength and optimism for Taiwan. Lai highlighted that 2025 marks “a year in which Taiwan rises,” pointing to a series of record-breaking indicators that showcase the country’s resilience and innovation capacity.
The Taiwan Stock Exchange recently hit an all-time high of 27,301 points, while total market capitalization surpassed US$3 trillion, ranking eighth globally. Moreover, employment figures are at their best levels in 25 years, reinforcing confidence in the domestic labor market.
The Asian Development Bank (ADB) projects 5.1% GDP growth for Taiwan this year, the highest among the Four Asian Tigers and ahead of mainland China. This growth is largely driven by robust performance in semiconductors, information and communications technology (ICT), and electronic components, sectors deeply intertwined with AI and high-performance computing demand.
AI and Chips Drive Record Industrial Output
Complementing Lai’s announcement, last month, the Ministry of Economic Affairs (MOEA) reported that Taiwan’s industrial output soared 14.4% year-on-year in August, reaching record levels on the back of AI chip demand.
The manufacturing subindex, which constitutes over 90% of total output, rose 15.5%, while electronics component production jumped an impressive 31.5%, driven by booming demand in AI, wafer foundries, integrated circuit (IC) design, and high-performance computing.
This strong performance highlights the tight integration between Taiwan’s AI ambitions and its semiconductor sector, the foundation of the nation’s economic and technological dominance.
