The AI Opportunity in Taiwan.

Taiwan sits at the heart of the AI hardware supply chain – and in coming years, AI is set to help it increasingly diversify into new strengths in software and services too. With strong digital infrastructure, skilled talent, and an innovation-driven economy, Taiwan is well positioned to benefit from long-term AI-driven growth.

Today, we’re publishing a fact sheet looking at some of the opportunities AI is starting to create in Taiwan. We estimate that AI can boost the value of Taiwan’s economy by NT$1.9 trillion (US$58 billion), an 8% increase in Gross Value Added (GVA).

View the English Factsheet
View the Chinese Factsheet
Read the methodology

Here are four opportunities from AI we looked at in Taiwan:

Manufacturing.

AI could help firms in the manufacturing sector optimise their supply chain, reduce downtime and minimise defects. In total, we estimate that AI could help grow the manufacturing sector in Taiwan by NT$1.5 trillion (US$48 billion).

Retail.

 AI could make it easier for online retailers to create new types of advertising, respond to consumer questions faster and export to more countries in different languages. In total, we estimate that AI could help grow online retail in Taiwan by more than NT$42 billion (US$1.3 billion).

Boosting the productivity of workers.

By increasing labour productivity, this will raise the value of each hour worked – which in turn we estimate could lead to potential wage increases of 8%.

Offsetting the costs of an ageing population.

In total, we estimate that the greater use of AI could help offset 44% of potential labour shortages in Taiwan driven by an ageing population, by helping businesses to maintain or boost labour productivity despite a smaller working age population.