Taiwan's Ministry of Digital Affairs (MODA) has announced a NT$10 billion (US$320 million; US$1=NT$32.3) investment plan over the next decade to support promising domestic AI startups, according to the United Daily News on February 11. The initiative aligns with MODA's broader "Three Arrows" strategy, which aims to enhance digital resilience, strengthen the digital economy, and combat online fraud. The investment will focus on four key areas: computing power, data, talent, and funding. MODA plans to provide AI startups with access to GPU computing resources, train AI professionals in both the public and private sectors, and open government datasets for AI model development. Additionally, the ministry intends to establish a sovereign AI training data repository, supporting Taiwan’s AI development efforts, including the Trustworthy AI Dialogue Engine (TAIDE) initiative.
This initiative is an investment plan, not a subsidy, and will follow a co-investment model where private venture capital firms invest first, followed by government backing. MODA is currently selecting 15 venture capital firms, each required to propose two AI startups for potential investment in 2024, with the goal of funding up to 30 startups this year.
Meanwhile, the Market Intelligence & Consulting Institute (MIC), a division of the Institute for Information Industry (III) and a key partner of MODA, has identified "Sovereign AI" as one of the top 10 industry trends for 2025. Governments worldwide are investing in domestic AI capabilities, and Taiwan’s comprehensive AI infrastructure solutions are playing a pivotal role in this global movement. According to MIC Deputy Director General Jay Yang, Taiwan’s industrial supply chain is well-positioned to provide turnkey solutions for AI infrastructure, including AI hardware components, server manufacturing, cabinet systems, and liquid cooling technologies. These capabilities allow Taiwan to support nations looking to establish localized AI computing ecosystems.