TAIPEI (Taiwan News) — Fintech must move faster to keep pace with Asia's rapidly expanding semiconductor and AI industries, members of the Asia FinTech Alliance said Tuesday, calling for greater regulatory cooperation and more efficient cross-border payment infrastructure.
The comments came as the AFA, an alliance representing fintech associations from 16 Asian economies, introduced its regional network and announced its first AFA Awards, scheduled for September and aimed at recognizing companies developing solutions to facilitate cross-border financial activity.
AFA Chair Jaclyn Tsai (蔡玉玲), a former minister without portfolio responsible for digital affairs, said the alliance was established because Asian economies face many of the same technological challenges and can benefit from closer cooperation.
"Where technology is connected, we should be similar," Tsai said, emphasizing the importance of regulatory harmonization across Asian markets. The alliance plans to bring regulators together at an AFA summit in September to discuss both the opportunities and risks associated with emerging financial technologies.
Tsai, who played a role in bringing Uber and other digital services to Taiwan, said the AFA is seeking companies capable of solving practical cross-border problems. "We truly believe that if solutions work in Japan, it's likely they may work in Taiwan or elsewhere," she said, adding that regulators can learn from each other's experiences.
AFA Treasurer Takafumi Ochiai said the alliance represents an industry rather than individual companies and is designed to connect policymakers, regulators, financial institutions, technology companies, investors, and fintech ecosystems.
He said supply chains are often discussed primarily in terms of physical products and manufacturing, while the financial infrastructure supporting those supply chains receives less attention. "Each transaction in a supply chain is settled by some fund," Ochiai said, arguing that financial settlement should be viewed as a second layer of the same supply chain.
As Asian manufacturing networks become increasingly interconnected, companies need financial systems capable of supporting cross-border transactions quickly and efficiently, he said. The issue is particularly important for Taiwan, which sits at the center of global semiconductor and AI supply chains.
Nicky Lu (盧超群), founder of Etron Technology and chair of the Taiwan Semiconductor Industry Association, said the semiconductor industry has little tolerance for delays. "The most important is speed, speed, speed," Lu said.
He pointed to the time required to manufacture and ship semiconductor-related products from Taiwan to customers in Europe and elsewhere, saying that even several hours can make a significant difference for companies operating complex supply chains. "When the product is ready, we need to ship it," Lu said.
Lu said Taiwan's electronics industry generated about US$300 billion (NT$9.68 trillion) in 2024 and grew to roughly US$370 billion in 2025, citing figures from the Taiwan Electrical and Electronic Manufacturers' Association. He estimated that the combined electronics and semiconductor industries could approach US$1 trillion within several years.
Lu also said Taiwanese companies account for about 90% of global AI server shipments, underscoring the importance of ensuring that financial infrastructure supporting those companies can operate at a comparable speed.
Financial disruptions could have consequences throughout the AI supply chain, affecting buyers, suppliers, and workers, he said. "As we have industrial scale, close to US$1 trillion, we cannot waste time," Lu said.
Stablecoins were another major focus of the discussion, particularly following Taiwan's passage of legislation governing virtual assets. Under the new framework, stablecoins could potentially be backed by either the New Taiwan dollar or US dollar, although the exact direction of the market remains under discussion.
Tsai said regulations implementing Taiwan's new virtual asset framework are still being developed and are expected to be completed toward the end of the year. She said stablecoin issuance would be limited to financial institutions rather than virtual asset service providers.
The question of whether Taiwan should develop a New Taiwan dollar-backed stablecoin or allow greater use of US dollar-backed stablecoins remains unresolved. Tsai said a New Taiwan dollar-backed stablecoin would be a natural option, although other forms could emerge depending on specific use cases.
Stablecoins could be particularly useful in international supply chains, where companies receive payments in US dollars but need to convert the funds into local currencies to pay employees and suppliers. Tsai predicted that stablecoin payments could become increasingly common from next year, not only in Taiwan but across Asia.
She pointed to the participation of major financial and payment companies, including JPMorgan and Visa, as evidence that the industry is exploring new forms of cross-border settlement.
Speakers also said Japan's experience with financial interoperability and international standards could provide lessons for other Asian economies.
Wilson Beh, vice chair of the Fintech Association of Malaysia, said the AFA has consistently sought to connect fintech with the real economy. Last year's theme focused on fintech and semiconductors, with the goal of exploring how financial technology could support semiconductor production and supply-chain management.
Southeast Asia is experiencing rapid growth in semiconductor manufacturing and data centers, creating new opportunities for fintech applications, Beh said. "We want to enable fintech to support semiconductors and supply-chain balancing," he said.
Malaysia plans to bring a larger delegation to Taiwan to explore opportunities for cooperation, Beh said.
The alliance believes the connection between fintech and the real economy will become increasingly important as Asia emerges as both a major manufacturing center and the world's largest potential fintech market.
The AFA also announced its first awards program, scheduled to take place in Taipei on Sept. 2 and 3. The program is designed to recognize fintech companies developing practical solutions to cross-border challenges.
The alliance received applications from between 80 and 100 companies for consideration. Companies will compete in five categories: the Grand Award, Fastest Growth Award, Regulatory Excellence Award, Financial Infrastructure Award, and Market Expansion Award. International judges will review the finalists, with five companies ultimately receiving awards.
AFA representatives said winners will gain greater market exposure, ecosystem influence, and opportunities to attract capital and expand their businesses.
Korean representative Dongpyo Hong described the AFA as a "decentralized network of trust" and said the awards are intended to create a platform for innovators.
He said the need for fintech is becoming increasingly urgent as “AI agents will soon begin making payments for services, spread over long periods of time.” In such a scenario, Hong predicted that stablecoins could become the preferred form of payment.
