Artificial intelligence, long hailed as a world-changing and digitally disruptive force, is gaining rapid traction. Valued at US$87.04 billion in 2021, the global AI market is projected to surpass US$1.597 trillion by 2030.(1)
Taiwan is primed to be at the vanguard of technology’s next frontier.
For decades, the east Asian island has been a chip manufacturing giant. This allowed Taiwan to equip its global partners for the Industry 4.0 era.
“How can we continue to stay ahead? We build on the advantages we already have and go from there – from a manufacturing giant to a total solutions provider,” said Chen Pei-Li, deputy director general of Taiwan’s Industrial Development Bureau (IDB).
“Taiwan had its beginnings in the foundry and manufacturing business, and has become world-leading in those fields. Many of our AI start-ups have been active in the research and development of various application fields, creating an ecosystem for innovation. That has all given Taiwan a strong foundation for AI development and we will play to those strengths.”
Taiwan’s strategy in the near term is one that marries the island’s hardware heritage with its nascent AI know-how, to produce everyday application solutions that are tested domestically before they are rolled out worldwide.
Taiwan’s head start on the road to AI
Taiwan is the world leader in semiconductor foundry, packaging and testing. In integrated circuit design, it is second only to the US. And the island is on the verge of mass production of the world’s first 3nm chip(2), the cutting-edge tool that will power next-generation edge AI products.
Taiwan has a large pool of capable and affordable engineering talent, working in a competitive chip ecosystem that is in great demand.
To make the push into AI, data is a prerequisite. Here, Taiwan’s transparency and openness gives it an edge. It tops the Global Open Data index(3), a barometer for the open publication of government data.
Taiwan also has a stable of small and mid-sized enterprises, which comprise more than 95 percent of the island’s businesses.(4) Consequently, Taiwan provides massive amounts of data that can be extracted, analyzed and applied. This also means Taiwan has the agility and ability to pivot and adapt.
“If you don’t have data, you don’t have AI because you don’t get it by just getting a programmer to write it,” said Jim Liu, CEO of leading-edge AI company ADLINK Technology. “Taiwan has many fields to test and apply these AI products on. No matter how good a technology or a product, if you don’t have the avenues to run it in, then everything is still just theory on paper.”
Already, Taiwan’s ICT-enabled innovation is at work across sectors. In factories, for instance, smart, robotic arms developed by Techman Robot check for defects during quality inspection. They pick up subtle flaws that the naked eye would otherwise miss, allowing repairs to be done on the spot, thereby raising efficiency and lowering costs.
Techman Robot is now the second largest collaborative robot manufacturer in the world.
Cultivating a robust environment for AI growth
Taiwan’s commitment to AI development is clear. And it starts at the top, with enormous resources poured into government initiatives designed to nurture a robust environment for growth.
In 2018, authorities unveiled the AI Taiwan Action Plan(5), which allocated more than US$300 million annually into developing its AI industry. Huge efforts were made to strengthen Taiwan’s already-dominant semiconductor chip industry, laws were liberalized, and test grounds opened.
A year later, the AI on Chip Taiwan Alliance was formed(6), another example of collaboration between government, industry and academia in support of the island’s push into the AI market.
Policymakers have pledged to shape initiatives that will provide 10,000 workers each year(7) and help drive Taiwan’s growth in AI.
“Taiwan takes a whole-of-nation approach to its AI journey. Every person is a ‘soldier’,” said Lien Wei-Cheng, CEO of Hyson Technology, an award-winning start-up that has been developing AI solutions for industries.
Hyson has had success with intelligent aquaculture systems that incorporate cloud technology and AI capabilities to help fishermen efficiently and effectively monitor their stock in an otherwise tricky environment, allowing farming to be measurable, controllable and scaleable.
IDB’s AI Hub initiative has facilitated partnerships between a variety of domestic companies, and these partnerships have led to the development of many AI-driven applications on the island.
AIoT software start-up GoodLinker, for instance, partnered with industrial computer manufacturer Advantech in 2020, thanks to the AI+ talent scouting competition organized by the IDB. The product they developed is called “Screen Data Extractor”, integrating software and hardware to address common issues in data collection, which are often caused by aging machinery.
“The competitions were a chance to work with big companies and integrate new AI software with their hardware, to produce something that can be taken onto the world stage,” explained Ethan Feng, founder and CEO of GoodLinker. “That’s the eventual objective – it wasn’t just a one-off competition.”
The matching of AI solutions to industrial requirements has led to many other successful applications, from security camera systems to smart checkout systems that employ AI image recognition technology – something that has already proven successful overseas, particularly with businesses in the US and Japan.
Taiwan’s foray into AI, backed by its competitive edge and distinct advantages, make it a haven for partnerships with overseas companies and foreign investment.
Already, its potential is recognized by many of the world’s foremost companies: Microsoft, Amazon and Google have all set up research and development centers there, and the island is poised to work with more partners beyond its shores.
“We’re no longer working in or producing the traditional factories that most people imagine – our factories now have ‘brains’ and intelligence,” said IDB deputy director general Chen Pei-Li. “When foreign companies come to Taiwan, they’re looking for a smart solution. Taiwan has the ability to satisfy their needs across all domains.”
“Taiwan is very sincere in wanting to be friends with the world. We know that the services and technology we provide will be of added value. We hope to continue using this niche of ours to be a good partner with all countries and industries – that’s how we can advance in the world.”