1 July 2024

Decoding Taiwan’s True AI Potential

Kai-Shen Huang and Hsin-Ta Tsai

As the global artificial intelligence (AI) revolution unfolds, Taiwan finds itself playing a crucial role in shaping the future of this transformative technology, particularly its dominance in the world’s AI chip market. This prominence was showcased at the recent Computex 2024 expo in Taipei, where industry giants such as Nvidia, AMD, Intel, and Qualcomm all came to the island to unveil their latest AI solutions.

Coverage by CNN and The Guardian reported that Nvidia CEO Jensen Huang referred to Taiwan as “the home of our treasured partners” and the inception point for all Nvidia’s initiatives.

Indeed, Taiwan has been active in reaching out to AI chipmakers, including through 2023 amendments to the Statute for Industrial Innovation. The reform allows chip manufacturers to claim a 25 percent tax deduction on research and development for advanced chips, along with a 5 percent deduction for advanced manufacturing equipment purchases.

However, despite its substantial contributions to the global AI ecosystem, Taiwan often struggles to accurately represent itself in global assessments by international organizations such as the United Nations.

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