TAIPEI (Taiwan News) — Taiwan’s National Development Council on Friday released a plan to boost the AI sector and promote what it calls “Ten New Drivers of National Power,” as the country navigates global economic uncertainty triggered by US President Donald Trump’s tariff policies.
The report was issued ahead of a legislative economic committee meeting on Monday. The NDC said strong AI investment and technology-related spending have helped make Taiwan the best-performing exporter in Asia so far this year, supporting upward revisions to economic growth forecasts for 2024 and 2025, per Commercial Times.
The council said Taiwan’s recent performance shows the economy is resilient enough to withstand post-tariff global trade conditions. However, it noted that some industries remain cautious about the domestic investment environment and the business climate for Taiwanese companies operating in the US.
According to the NDC report, the newest US tariff measures have had a significant impact on global economic growth and supply chain restructuring. The council said Taiwan will continue to track changes in US trade policy and adopt measures to support local industries and stabilize employment.
To guide long-term development, the NDC created a dual pyramid strategy combining the “Ten New Drivers of National Power” with “Ten New Constructions in AI.”
In the latter pyramid, priorities are organized around three pillars: industrial upgrading, intergenerational care, and strengthening national power. Industrial upgrading includes support for five key sectors, including semiconductors, drone and defense industry supply chains, and cybersecurity development to enhance the resilience of Taiwan’s communications networks.
The strategy also focuses on improving small and medium-sized enterprises’ operations, boosting productivity, and expanding domestic and international markets.
In the pyramid supporting AI development, the NDC called the technology a major engine of economic growth. The government plans to invest in applications, infrastructure, talent and innovation, aiming to generate NT$7 trillion (US$223 billion) in output and create 180,000 high-paying jobs by 2028, placing Taiwan among the world’s top 14 in AI capability, per CNA.
By 2040, the council projects more than NT$15 trillion in output and 500,000 high-paying jobs, which it says could lift Taiwan into the global top five.
For intergenerational care, the Ministry of Finance is continuing tax-reduction and simplification measures, including raising the personal income tax exemption threshold next year. The Ministry of the Interior is expanding housing programs for young people and families with children, while the Ministry of Health and Welfare is advancing its “National Co-parenting 2.0” policy for children aged 0 to 6. The “Long-Term Care 3.0” program is set to launch next year, significantly improving existing long-term care services.
NDC Minister Yeh Chun-hsien (葉俊顯) said government agencies are pushing forward six major regional industrial and living zones and planning 152 key infrastructure projects across Taiwan to promote balanced development. He said ministries are also advancing comprehensive flood-prevention systems, developing cultural and sports industries, and working with international platforms to combat fraud.
According to think tank assessments cited by the NDC, the US decision on July 31 to reduce retaliatory tariffs on Taiwan from 32%, set in April, to 20% will cut the projected impact on Taiwan’s exports, output value, GDP and employment by roughly half.
The council said it will support industries facing global economic shifts through a special budget aimed at strengthening economic, social, livelihood and national security resilience.
