TAIPEI (Taiwan News) — Defense and AI industries have emerged as the top recipients of Taiwan's bank lending among key sectors prioritized by the government, reflecting rising investment in national security and technology development.
The five key industries identified by President Lai Ching-te (賴清德) as important to future development are semiconductors, AI, defense, cybersecurity, and next-generation communications. Outstanding bank loans to these five industries reached their highest levels in defense-related businesses as of the end of May, followed by AI and next-generation communications, according to CTEE and the Cabinet.
The defense sector accounted for NT$2.91 trillion (US$89.5 billion) in outstanding loans. This was followed by the AI sector with NT$1.12 trillion and the next-generation communications sector with NT$1.02 trillion.
CTBC Bank said growing demand for AI technologies has increased financing needs across the technology supply chain. Among the five prioritized industries, defense-related companies received the largest amount of total lending from the bank during the first five months of the year.
Mega International Commercial Bank also reported that defense was its largest lending category among the five industries during the same period. The bank said rising global demand for stronger defense capabilities and more secure supply chains has encouraged Taiwanese companies to increase investment and expand production capacity, driving demand for financing.
First Commercial Bank said cybersecurity was the fastest-growing lending sector among the five industries during the first five months of the year. The bank attributed the growth to increasing global concerns over cybersecurity risks.
Companies have also been investing in supply chain security and endpoint protection, which help safeguard devices connected to corporate networks. These investments, along with technology upgrades and government support, have boosted demand for working capital loans and long-term financing.
For the third quarter, First Commercial said it has the strongest outlook for the semiconductor and AI sectors. It cited continued investment in AI computing systems, advanced chip manufacturing, and advanced packaging.
Looking ahead to the second half of the year, Mega said it remains cautiously optimistic about market conditions. AI, semiconductors, and defense are expected to remain key areas of business investment.
