Taiwan pledges $25 billion yearly AI push to build a smart island.

President Lai Ching‑te met with the award‑winning companies of the 22nd Taiwan Golden Root Award at the Presidential Office today and outlined the government’s key policy direction for the future development of Taiwan’s industry. He said the administration is fully committed to advancing ten new artificial‑intelligence infrastructure projects, with the goal of turning Taiwan into a globally recognised “AI island.” At the same time, Lai stressed that the government will not overlook the small‑ and medium‑sized enterprises (SMEs) and micro‑enterprises that make up the overwhelming majority of Taiwan’s economic fabric. Beginning next year, an annual budget of up to NT$250 billion will be allocated to comprehensively support SMEs and micro‑enterprises in upgrading and transforming, thereby deepening and accelerating the overall industrial transition.

The Taiwan Golden Root Award traditionally recognises companies that remain rooted in Taiwan, cultivate domestic capabilities and possess global competitiveness. During his audience with these exemplary firms, President Lai highlighted that Taiwan’s ability to maintain a steady footing amid rapid shifts in the international political‑economic landscape—and to secure a pivotal role in the semiconductor and high‑tech sectors—relies heavily on the contributions of these local award‑winners. Facing a worldwide reshuffling of supply chains, the pressure of net‑zero carbon targets, and the explosive growth of AI technologies, Taiwan’s industrial structure stands at an unprecedented turning point. The government acknowledges that large corporations have the resources to confront these challenges on their own, but the vast majority of Taiwanese firms—SMEs and micro‑enterprises—often confront significant constraints in capital, talent and technology.

To alleviate the pain points SMEs encounter during transformation, the forthcoming NT$250 billion support programme, slated to launch next year, will serve as a key engine for a dual‑track economic advance. The policy goes beyond financial subsidies, encompassing technical assistance, the introduction of digital tools and low‑carbon transition measures. President Lai noted that Taiwan’s future cannot rely solely on a handful of high‑tech “national‑defence” champions; it also needs countless resilient SMEs as a solid foundation. Only by upgrading traditional industries, small retailers and manufacturers in tandem can Taiwan achieve truly inclusive and sustainable economic growth and maintain a competitive edge in the global market.

From a macro‑strategic perspective, the annual NT$250 billion investment aligns with the government’s current “Balanced Taiwan” and “Smart Nation” visions. The ten new AI infrastructure projects require a robust downstream application ecosystem, and SMEs constitute the essential venues where these technologies will be deployed. When traditional manufacturing adopts smart machinery and big‑data analytics to boost efficiency, and when service‑sector firms leverage AI to optimise operations, Taiwan’s overall productivity and economic value are poised for leap‑frog growth. This will not only raise domestic wages but also attract greater foreign investment, reinforcing Taiwan’s core strategic value within global supply chains.

Overall, President Lai’s remarks to the Golden Root Award recipients convey a policy message that both recognises the relentless efforts of local firms and affirms the government’s solemn commitment to future industrial planning. Confronted with geopolitical risks and global economic volatility, Taiwan is providing concrete fiscal support and policy guidance to help SMEs navigate the pains of transformation. The yearly NT$250 billion allocation will act as a pivotal thrust in Taiwan’s shift from a “manufacturing powerhouse” to a “smart island.” With coordinated effort from government and private enterprise, Taiwan’s economic resilience will be further enhanced, leaving an indelible mark on the world stage.

(Source: Central News Agency)