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Taiwan becomes “world’s heart” with semiconductor edge in AI era: President Lai

26/03/2026 15:41
Editor: Eloise Phillips
President Lai Ching-te stated on Thursday, while attending the premiere of the international documentary and technology forum "The Crystal-Coated Heart - AI ​​Island" hosted by the Sanlih E-Television group, that Taiwan has integrated into the "non-red supply chain" led by the U.S., ensuring its future global competitive advantage. (Photo: CNA)
President Lai Ching-te stated on Thursday, while attending the premiere of the international documentary and technology forum "The Crystal-Coated Heart - AI ​​Island" hosted by the Sanlih E-Television group, that Taiwan has integrated into the "non-red supply chain" led by the U.S., ensuring its future global competitive advantage. (Photo: CNA)

President Lai Ching-te (賴清德) said Thursday at the premiere of the documentary “Gilded Silicon: The Crystal Heart of AI” that Taiwan’s powerful chip industry holds a pivotal role in global supply chains, positioning the island as the “heart of the world.” As the artificial intelligence era dawns, Taiwan exports the world’s most advanced chips, powering tech applications and driving next-generation industry prosperity. 

Lai highlighted Taiwan’s economic achievements, stating that Taiwan is a small, mountainous nation lacking resources, yet through government, industry, academia, and research efforts, it ranks 22nd globally in economic output, seventh in stock markets, with per capita income surpassing US$40,000 – overtaking neighbours Japan and South Korea. 

Taiwan leads globally in wafer fabrication and packaging testing, with semiconductor output hitting NT$7.7 trillion (US$241 billion) this year, cementing its AI role. Lai described Taiwan as “a land rich with tech energy, like gold mines,” giving rise to the crucial chip industry. Taiwan’s high-tech industry makes it the “heart of the world” in the AI era.

Lai said, “If we’re talking about heart function, I have more experience than anyone here. The heart pumps blood to the body; without it, survival is impossible. The ‘crystal-coated heart’ outputs chips – the most advanced chips that will enable the prosperity of the next generation of humanity.” 

The president noted investment incentives, including tax breaks and rewards, drawing tech giants such as Nvidia, Google, and AMD. Taiwan has joined the U.S.-led “non-red supply chain,” securing MFN treatment under Section 232, plus deals with France, the U.K., and Japan. The government is pushing Ten Major AI Infrastructure Projects to train 50,000 talents in silicon photonics and quantum computing, aiding SME digital shifts, making Taiwan an AI island, and moving from a “provider of advanced technology” to a “creator of future value.”

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