TAIPEI (Taiwan News) — The Ministry of Economic Affairs said Tuesday it will spend NT$500 million (US$16.4 million) to build 20 AI common models across eight key sectors.

The ministry’s Department of Industrial Technology said its “AI Application Acceleration Program” will offer up to NT$30 million in subsidies per project, per CNA.

DOIT Director-General Kuo Chao-chung (郭肇中) said AI can help industries facing tariff pressures by boosting production and lowering costs. He added the goal is to cut development and operating costs across industries by 10%.

Priority sectors include chemicals and plastics, semiconductors, and healthcare. AI models will be developed by research institutes, allowing firms to use them in workflows without starting from scratch.

The program has two tracks: introduction projects, capped at NT$20 million, that help firms adopt AI with research institutes; and diffusion projects, which offer NT$20 million for integrators that extend AI applications to at least eight more companies.

Chinese National Federation of Industries Deputy Secretary-General Chen Hung-wen (陳鴻文) said firms face supply chain restructuring and reciprocal tariff pressures. Smart manufacturing will address labor shortages and accelerate low-carbon transitions, he said.

The economics ministry said research institutes have created 31 common models adopted by 279 manufacturers, with more to follow.