Taiwan’s semiconductor industry generated NT$5.3 trillion (US$175 billion) in output last year, according to Premier Cho Jung-tai (卓榮泰). The government is now promoting its new “Ten Major AI Infrastructure Projects” to reach a NT$6 trillion (US$198 billion) target this year.

SEMICON Taiwan 2025 opened this Wednesday, featuring around 1,200 domestic and international companies across more than 4,100 booths. Speaking at the opening ceremony, Cho noted Taiwan’s accumulated expertise over the last 30 years has extended its semiconductor reach to Europe, the United States, and Japan. He says this is clear proof of the world’s reliance on Taiwan.

Cho added that the government has budgeted more than NT$30 billion (US$992 million) this year for the AI projects, which span artificial intelligence, cloud services, and end-user applications such as silicon photonics, quantum technology, AI drones, and smart robots. He said these efforts will drive industrial upgrades and establish a “smart living network for all.”

On reciprocal tariffs with the United States, Cho said the world is entering a “new tariff order.” While Taiwan’s talks have slowed due to U.S. Section 232 restrictions, he expressed confidence that the island’s long-standing cooperation with Washington and its strategic role in global chip supply chains will secure fair treatment.

Despite tariffs taking effect on Aug. 1, Taiwan’s exports still surged to US$58.49 billion in August, marking a fourth straight monthly record. The Finance Ministry credited high demand for AI-driven applications and seasonal restocking ahead of consumer electronics launches. Taipei’s stock index also jumped over 300 points to a new high, boosted by a rally in TSMC shares.