TAIPEI (Taiwan News) — The Cabinet on Thursday (Sept. 5) released plans for Taiwan to lead the global semiconductor supply chain and build the “top democratic supply chain center” for military drones in the Asia-Pacific region.
The Cabinet approved a proposal presented by the National Development Council (NDC) to boost five key sectors, per CNA. The plan suggests that Taiwan's role in the global semiconductor supply chain could bring an additional NT$2.6 trillion (US$81 billion) in production value by 2028.
In his inaugural address, President Lai Ching-te (賴清德) announced plans to promote “Five Trusted Industry Sectors," including semiconductors, artificial intelligence (AI), military, security and surveillance, and next-generation communications.
According to the NDC report, the semiconductor sector aims to solidify Taiwan's leadership in global wafer foundry and packaging and testing, while the IC design industry is expected to remain in the top two worldwide. By 2028, 50% of production is expected to use advanced processes.
Semiconductor materials are expected to see a 30% increase in output, adding NT$52.8 billion, while equipment output is projected to double, contributing NT$80 billion. These initiatives are expected to generate NT$2.66 trillion in additional production value and create 250,000 high-paying jobs.
In the AI sector, the government plans to promote AI, software, and cybersecurity industries, to surpass NT$1 trillion in output by 2026. It currently stands at NT$900 billion. Over the next four years, the government aims to train 200,000 digital professionals.
It also seeks to increase the adoption rate of AI applications in the digital economy to 50% and in the manufacturing sector to 30%.
The report added the government will construct smart, energy-efficient data centers, and expand international cooperation to enhance Taiwan's influence in the global AI market.
For the military-industrial sector, the government aims to build a “non-red supply chain for drones” and become the “top democratic supply chain for drones in the Asia-Pacific.” By 2028, the value of the drone industry is expected to grow tenfold, reaching NT$30 billion.
In addition, the government plans to boost drone production capacity to 15,000 units per month in the event of a sudden surge in demand. A temperature-controlled forge production line for engine components will also be established to improve aerospace materials.
The information security industry is expected to surpass NT$100 billion in output, while the target for the security and surveillance sector is NT$30 billion.
As for next-generation communications, the government is focusing on strengthening the resilience of Taiwan's future communication networks. Plans include developing 6G base stations with 80% domestic software and hardware production, and indigenous low-Earth orbit satellite ground communication systems.
By 2027, Taiwan aims to launch its first B5G low-Earth orbit communication satellite to establish an independent satellite network. It also plans to develop satellite communication network integration technologies and application services.
