TAIPEI (Taiwan News) — Taiwan will invest more than NT$100 billion (US$3.2 billion) to build a world-class AI industry, Nikkei Asia reported Tuesday.

Officials said the funds will support the government’s 10 Major AI Infrastructure Projects, a strategy modeled after Taiwan’s 1970s infrastructure campaign that reshaped the economy. President Lai Ching-te’s (賴清德) administration aims to make AI the next industrial pillar alongside semiconductors.

Premier Cho Jung-tai (卓榮泰) said the draft 2026 budget includes over NT$30 billion for the initiative, marking the first phase of long-term investment. The government expects the program to generate NT$7 trillion in added value by 2028 and NT$15 trillion by 2040.

The plan centers on three key technologies — silicon photonics, quantum computing, and AI robotics — identified as critical to boosting Taiwan’s competitiveness. The government intends to establish specialized research hubs to accelerate breakthroughs.

With global economies racing to build AI data centers, Taiwan aims to rank among the top five worldwide in computing power. The government plans to build a national-level facility in Tainan, while Nvidia and Foxconn will construct a major data center in Kaohsiung.

However, the country’s energy supply could become a challenge as AI infrastructure expands. Taiwan shut down its last nuclear plant in May and renewable generation remains behind target.