As the global artificial intelligence (AI) revolution unfolds, Taiwan plays a crucial role in shaping the future of this transformative technology, especially in the world’s AI chip market. This was highlighted at the recent Computex 2024 expo in Taipei, where industry giants like Nvidia, AMD, Intel, and Qualcomm unveiled their latest AI solutions.
Coverage by CNN and The Guardian noted that Nvidia CEO Jensen Huang praised Taiwan as “the home of our treasured partners” and the starting point for all Nvidia initiatives.
Taiwan has actively engaged with AI chipmakers, facilitated by amendments to the Statute for Industrial Innovation in 2023. These changes allow chip manufacturers to benefit from tax deductions for research and development of advanced chips and purchases of manufacturing equipment.
Despite the significant contributions Taiwan makes to the global AI ecosystem, it often struggles to accurately represent itself in international assessments by organizations such as the United Nations.
Taiwan’s semiconductor industry, led by TSMC, is crucial to global AI infrastructure, producing over 90 percent of the most advanced semiconductors for cutting-edge AI applications and research, as reported by The Economist.
In addition to IC production, Taiwan now produces complete AI hardware solutions. According to the Ministry of Economic Affairs, Taiwanese manufacturers supply over 90 percent of AI servers worldwide, with major American brands relying on them for their AI server needs.
Due to its “non-state” status, Taiwan is often excluded from global databases provided by the United Nations, which impacts its AI development potential. This absence affects evaluations in areas such as data protection legislation, research and development expenditure, and online government services.
The lack of data on Taiwan results in its low rankings in global indices and reports. For example, the Government AI Readiness Index 2023 by Oxford Insights highlighted deficiencies in Taiwan’s AI readiness concerning data protection legislation.
Taiwan’s exclusion from U.N. databases distorts representation, hindering its participation in global discourse and decision-making. This was evident during the COVID-19 pandemic when Taiwan, despite its successful crisis management, was excluded from the WHO, limiting its ability to share expertise and access resources.
In the context of AI development, the lack of accurate data on Taiwan’s capabilities can lead to a skewed understanding of the global AI landscape, missing opportunities for collaboration and inclusive decision-making.