Taiwan has earned the “AI Island” moniker due to its robust technology infrastructure, thriving semiconductor industry, and substantial investment in artificial intelligence research and development. At the heart of the country’s AI prowess is its world-leading semiconductor industry, which supplies the critical hardware required for AI computation.
Take Taiwan Semiconductor Manufacturing Company (TSMC), for instance. At the forefront of the industry, it produces over 90 percent of the world’s most advanced semiconductor chips, which power everything from smartphones to artificial intelligence applications. This technological backbone provides a solid foundation for the country’s AI initiatives, enabling the development of cutting-edge AI applications and solutions.
Watch the video of Taiwan’s President William Ching-te Lai’s speech at the opening ceremony of 2024 Computex Taipei, produced by TaiwanPlus.
Taiwan government’s support for AI development
The government has proactively fostered an environment conducive to AI innovation. On January 18, 2018, the government launched the AI Taiwan Action Plan (2018-2021) to enhance the country’s competitive edge in artificial intelligence. This initiative aims to prioritize innovation and real-world implementation while promoting the simultaneous development of software and hardware.
Moreover, the AI Taiwan Action Plan 2.0 (2023-2026) was announced on April 7, 2023. It aims to leverage the country’s strengths to transform and upgrade industries, improve social well-being, and establish the country as a global AI powerhouse. The plan targets increasing the AI industry’s value to over NT$250 billion (US$8.16 billion) by focusing on talent development, industry growth, work environment enhancement, and expanding technological influence in global markets.
Through targeted policies and initiatives, the government integrates AI across various sectors, such as healthcare, manufacturing, and transportation. These efforts encourage domestic companies to adopt AI technologies while attracting international partnerships and investments. For example, NVIDIA, led by CEO Jensen Huang, has formed significant collaborations with Taiwanese institutions, further solidifying the country’s reputation in the AI domain.
Taiwan’s academic institutions’ support for AI development
The country’s academic and research institutions also play a crucial role in the country’s AI landscape. Various universities, such as National Taiwan University, and research organizations, such as the Industrial Technology Research Institute (ITRI), are heavily involved in AI research, producing steady innovations and skilled professionals.
These institutions often collaborate with industry leaders, ensuring academic advancements translate into practical, real-world applications. The synergy between academia and industry accelerates the pace of AI development and deployment, reinforcing the country’s position as a leader in the field.
The science parks in Taiwan
The country is home to many key IT-related industrial parks that are hubs for technological innovation and industrial development. Notable among these are the Hsinchu Science Park, Central Taiwan Science Park, and Southern Taiwan Science Park.
The Hsinchu Science Park, established in 1980, houses over 500 companies, including major players like TSMC and MediaTek. The Central Taiwan Science Park, established in 2003, accommodates around 200 companies specializing in various high-tech fields. The Southern Taiwan Science Park, which began operations in 1996, hosts approximately 300 companies.
In addition to these 3 science parks, there are 237 industrial parks, 10 technology industrial parks, 3 agricultural technology parks, 4 environmental science and technology parks, and 7 free trade zones across the country. These parks and free trade zones are instrumental in fostering the country’s position as a global leader in the technology and semiconductor industries.
Watch the following video of NVIDIA CEO Jensen Huang’s keynote at COMPUTEX 2024.
The presence of international tech giants
When COMPUTEX 2024, the largest computer show in Asia and the second largest worldwide, was held in Taipei in early June, many AI giants flocked to the show to attend this important IT exhibition. Among them were Jensen Huang, CEO of NVIDIA (NVIDA) — the world’s leading AI company that has surpassed Apple to become America’s second most valuable company — Lisa Su, CEO of Advanced Micro Devices (AMD), Pat Gelsinger, CEO of Intel (INTC), Cristiano Amon, CEO of Qualcomm (QCOM), Charles Liang, CEO of Super Micro Computer Inc. (SMCI), Lars Reger, EVP and chief technology officer of NXP Semiconductors (NXPI), Enrique Lores, CEO of HP Inc., etc., also attended COMPUTEX.
The presence of these international tech giants underscores the country’s pivotal role in the global technology and semiconductor industries. With its robust technological infrastructure and highly skilled workforce, Taiwan has become a crucial hub for these leading IT and AI companies.
Google has established significant operations in the country, including its largest R&D center outside the U.S., leveraging the local talent pool to drive AI and cloud computing advancements. Intel and AMD, both critical players in the semiconductor market, have deepened their investments in Taiwan, capitalizing on the country’s advanced manufacturing capabilities and strategic location within the Asia-Pacific region.
When asked, Jensen Huang said: “Taiwan is one of the most important countries in the world … It is at the center of the electronics industry. The computer industry is built because of Taiwan.” On top of that, he also expressed that he is looking for “a very large site” for an NVIDIA headquarters in the country.
Similarly, at COMPUTEX in Taipei, Lisa Su, chairwoman and CEO of Advanced Micro Devices (AMD), told CNN, “We do a lot of our manufacturing here. Taiwan, in particular, is very important to the semiconductor ecosystem.”
Taiwan’s vibrant startup ecosystem
The country’s startup ecosystem is renowned for its collaborative spirit, where entrepreneurs, industry experts, academia, and government organizations foster a culture of knowledge sharing, mentorship, and mutual support.
This supportive environment, with international tech giants and a strong local entrepreneurial drive, creates a fertile ground for AI innovation. Taiwan is home to numerous AI startups making significant advances in machine learning, natural language processing, computer vision, and more.
In conclusion, the country’s designation as an “AI Island” is well-earned, reflecting its comprehensive and multi-faceted approach to artificial intelligence. The country exemplifies how a small country can significantly impact the global AI landscape, from its foundational semiconductor industry and supportive government policies to its pioneering research institutions and dynamic startup scene.
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