Taiwan's Unique Approach to AI Investment

The National Development Council (NDC) Chairman Yeh Chun-hsien recently addressed the Legislature, highlighting the distinct nature of Taiwan's technology investments compared to past economic bubbles like the dot-com boom. He emphasized that Taiwan is not merely creating a new sector but rather replicating existing industries in a different context, which minimizes overall risk.

Yeh outlined that through ten new AI infrastructure initiatives, Taiwan aims to generate over NT$15 trillion (approximately US$490 billion) in output value and create 500,000 high-paying jobs by 2040, positioning the country among the top five globally in AI capabilities.

In contrast, KMT Legislator Hseih Yi-fong pointed out that while U.S. AI startups have reached a market valuation of US$1 trillion, they have not yet turned a profit, raising concerns about a potential repeat of the dot-com bubble or the 2008 financial crisis. Nevertheless, Yeh remains optimistic, arguing that the current investment landscape is fundamentally different.