Taiwan will invest more than US$3.2 billion to build a world-class AI industry, Nikkei Asia reported on Nov. 18, 2025.
The funding will back the government’s 10 Major AI Infrastructure Projects, a strategy likened to Taiwan’s 1970s infrastructure push that helped reshape the economy. President Lai Ching-te’s administration wants AI to become a new industrial pillar alongside semiconductors.
Premier Cho Jung-tai said a draft 2026 budget allocates over US$1.0 billion for the first phase of long-term investment. Officials project the program could create US$224 billion in added value by 2028 and US$480 billion by 2040.
The initiative targets three core technologies: silicon photonics, quantum computing, and AI robotics, supported by specialized research hubs. Taiwan also aims to rank among the global top five in computing power, including a national facility in Tainan and a major Kaohsiung data center planned by Nvidia and Foxconn. Energy supply remains a key risk.
