TAIPEI (Taiwan News) — National Development Council Minister Yeh Chun-hsien (葉俊顯) has laid out a long-term AI push he says could reshape Taiwan’s economy and jobs market by 2040.

Speaking at the 2025 Innovation Forum in Taipei, Yeh said the government’s “AI New Ten Major Constructions” plan aims to generate more than NT$15 trillion (US$480 billion) in output, create 500,000 high-paying jobs, and set up three international-level AI research labs, backed by NT$311 billion in funding next year to move Taiwan toward a “smart technology island,” per UDN.

Yeh pointed out that Taiwan already sits at the heart of the global AI hardware boom, with local firms supplying over 90% of the world’s AI servers and pushing export values to record highs, including roughly NT$14.5 trillion in the first three quarters and about NT$1.9 trillion in October alone, per UDN.

The next step, he argued, is to turn that hardware lead into software, services, and full-scale applications, building an AI ecosystem that runs from factory floors to hospitals, classrooms, and city streets. He said the plan will back smart transport, smart healthcare, and smart energy projects so AI tools show up in daily life, not just in server rooms.

Rather than rely only on equipment exports, Yeh said Taiwan must use AI to upgrade manufacturing and, at the same time, roll out “smart living circles” that touch food, housing, mobility, and entertainment.

He added that AI growth has to sit on a solid legal basis, with the government preparing an AI Basic Act and reviewing personal data and copyright rules to support innovation while tightening governance.

Yeh pledged that the state will act as industry’s strongest backer as the plan unfolds, arguing that Taiwan cannot afford to be missing from the global AI ecosystem and should instead be seen as a key driver of smart technology worldwide.