International Benchmark · Updated 2026-02-17
🇹🇼 Taiwan AI Strategy Benchmark
Taiwan
One-line Read
Taiwan has put forward an "AI Island" vision, passed an AI Basic Act in late 2025, and committed over NT$100 billion in investment. As the undisputed global hegemon in semiconductor manufacturing (TSMC), Taiwan holds an irreplaceable strategic position in the AI hardware supply chain.
Core Strategies
AI Taiwan Action Plan 1.0
First national AI action plan, focused on talent and R&D
AI Taiwan Action Plan 2.0
Upgraded plan emphasising industrial applications and international cooperation
Ten Major AI Infrastructure Projects
Includes compute centres, data platforms, talent development and more
AI Basic Act
Principles-based framework law, passed by the Legislative Yuan in December 2025
Investment and Resources
| Item | Amount | Note |
|---|---|---|
| AI Island Master Plan | NT$100 billion | About US$3.1 billion, multi-year investment |
| 2026 AI Budget | NT$30 billion | Annual government budget |
| AI Startup Programme | NT$10 billion | Support for startups |
Governance Model
Taiwan passed the AI Basic Act in December 2025, taking a principles-based framework legislative approach, with the National Science and Technology Council (NSTC) as the competent authority. The Act emphasises innovation promotion, risk tiering, transparency and human rights, but detailed rules await secondary legislation.
Strengths vs Singapore
- • TSMC is irreplaceable in advanced AI chip manufacturing
- • Complete semiconductor and hardware ecosystem
- • Strong engineering talent pipeline
- • AI Basic Act provides a more explicit legal framework than Singapore's
Weaknesses vs Singapore
- • Lacks globally significant AI software firms
- • Energy supply constrains compute expansion
- • Cross-strait geopolitical risk weighs on international confidence
- • Software and application layers are relatively weak
Key Initiatives and Bodies
Key Initiatives
- • Continued TSMC advanced-node capacity expansion
- • NCHC compute upgrade for AI workloads
- • AI Basic Act legislation (Dec 2025)
- • Ten Major AI Infrastructure Plan
- • AI startup ecosystem cultivation
Key Bodies
- NSTC (National Science and Technology Council) — Coordinates AI policy and is the competent authority for the AI Basic Act
- MODA (Ministry of Digital Affairs) — Digital governance and data policy
- NDC (National Development Council) — Industrial policy planning
- FSC (Financial Supervisory Commission) — Financial AI regulation
Sources
- • AI Taiwan Action Plan 2.0 (2023)
- • AI Basic Act draft and Legislative Yuan records (2025)
- • Executive Yuan Ten Major AI Infrastructure Plan (2025)
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Data on this page is compiled from official government documents, international organisation reports and public sources, independently curated by Singapore AI Observatory. Data as of February 2026.