International Benchmark · Updated 2026-02-17

🇹🇼 Taiwan AI Strategy Benchmark

Taiwan

Core strategy
AI Island Plan / AI Basic Act
2025
Investment
~NT$100B (~US$3.1B)
Governance
Principles-based framework law (passed Dec 2025)
Core strength
Semiconductor hegemon (TSMC)

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

Investment and Resources

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

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.