Taiwan's semiconductor industry has become the island's "silicon shield" after three decades of policy-driven support and the combined efforts of pioneering entrepreneurs and researchers. Building on this achievement, Minister of Digital Affairs Yennun Huang stressed on July 31, 2025, that Taiwan must also become a "wave maker" in the AI age, going beyond the past focus on hardware to encompass data and applications.
The Ministry of Digital Affairs (MODA) will be tasked with several major aspects in the "Ten Major AI Infrastructure Projects" proposed by the Executive Yuan. Five key strategic tools will be crucial in establishing an ecosystem conducive to the growth of the AI industry: computing power, data, talent, marketing, and capital.
Computing power
The government will establish a computing pool comprised of 40 GPUs to assist small and medium-sized businesses in verifying AI services. By reducing redundant investments among digital service providers and accelerating development, the initiative will help enable proof-of-concept (PoC) testing in the early stages of AI development, while lowering risks associated with investing in equipment.
Data
To ensure a solid foundation for sovereign AI, MODA has been pushing for the expanded release of government data. Priority is given to second-tier government agencies in the phased release of government-owned copyrighted materials to build a Traditional Chinese corpus for training Taiwan's sovereign AI. Furthermore, a draft act to promote the public sharing and utilization of data is currently open for public comment, which will provide a legal basis for future data utilization.
Talent
MODA is taking a "training through real-world use" approach to encourage high school and university students to engage early with AI. The Ministry is developing a set of guidelines to define training goals, talent classifications, and curricula, and will hold a series of matchmaking "AI demo days" to assist startups in expanding markets and securing orders.
Capital
The Executive Yuan's National Development Fund has earmarked NT$10 billion (US$301 million) across 10 years (seven years for investment, three years for divestment) to enhance investments in AI startups, says Huang. The initiative will combine capital injection with venture capital mentoring, with a focus on backing AI startups that have already demonstrated technical capacity and market validation to help accelerate product commercialization.
Through these measures, MODA aims to empower industries in their AI and digital transformation, while boosting investments in Taiwan's AI startups and digital economy to establish a robust ecosystem for the AI industry.
Article edited by Jerry Chen
