Taiwan aims to become AI-island based on semiconductor industry

Some products in technology giant Delta in Taiwan

Taiwan's high-ranking government officials stated their commitment to advancing AI integration during a meeting with an international press group from 12 countries on July 23. The group visited Taiwan's global supply chain sector, highlighting the island's pivotal role in the tech industry.

Taiwan's Foreign Minister Lin Chia-lung said the government's foreign policy, built on the pillars of democracy, peace, and prosperity, would further deepen economic diplomacy, including AI adoption. He also emphasised a focus on Southeast Asia as part of promoting an east-bound policy.

"Taiwan needs to evolve from a 'silicon island' into an AI island,” he added, highlighting the need to integrate AI into the industry and accelerate AI innovation and applications.

Leveraging its position as a leading global ICT player with semiconductors as its prime product, Taiwan aims to enhance its technological prowess.

Taiwan's Deputy Foreign Minister Tien Chung-kwang acknowledged the significant impact of the Covid-19 interruption on the chips supply chain and stressed the new focus on AI.

TSMC, Taiwan's leading semiconductor manufacturer, has been producing the world's most advanced chips, crucial for AI applications.

Tien said, "Taiwan is in a perfect position to spread AI in the future, taking advantage of existing technological advances. With AI expected to remain a major driver of the worldwide semiconductor industry, the government is committed to promoting Taiwan as an AI island by establishing AI as the second economic driver."

Taiwan's National Development Council Deputy Minister Kao Shien-quey said Taiwan was leveraging the power of AI to drive industries such as smart medicine, innovative finance, and retail through digital transformation.

Kao noted that Taiwan's export of electronic components and the ICT industry combined exceeded 60 per cent of its total export volume.

"Taiwan will need to achieve balanced development across all sectors over the next four years," she said.

Kao added that the Taiwanese tech industry, particularly semiconductors, was guaranteed to remain resilient into the future due to its major clients in the United States, such as Apple, AMD, NVIDIA, and Qualcomm.

Taiwan is renowned as the world’s leading producer of semiconductors, accounting for 70 per cent of global production. During the pandemic, a shortage of Taiwanese chips severely impacted the German and Japanese vehicle sectors.

According to Taiwan's Industrial Development Administration and the Ministry of Economic Affairs, Taiwan ranked second in global semiconductor production last year, following the US. Taiwan's prominent semiconductor companies, including TSMC, Mediatek, and ASE Group.

TSMC, operating for 37 years, has created about 76,000 jobs and produces over 16 million 12-inch equivalent wafers annually, making it the largest logic IC capacity provider in the world. TSMC contributes 7.3 per cent of Taiwan's GDP and 13.4 per cent of its total export turnover

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Taiwanese investments expand horizons in Vietnam Despite global economic challenges, trade ties and investment cooperation between Vietnam and Taiwan continue to flourish.

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