President Lai announces 100 billion NTD fund to support SME AI transformation

President William Lai Ching-te visited Taichung today to attend the Taiwan Hardware Industrial Exhibition, delivering a significant policy address during his interactions with industry representatives. He explicitly stated to the business leaders and industry figures present that, in the face of rapidly shifting global trade dynamics and the pressures of supply chain restructuring, Taiwan’s economic foundation must remain solid, with small, medium, and micro enterprises (SMMEs) serving as the most critical pillar of the nation’s economic lifeline. To ensure these businesses are not left behind in the wave of dual-axis transformation toward digitalization and net-zero emissions, the government has formulated specific and long-term financial support plans. Moving forward, the government will increase its investment by up to NT$100 billion on top of existing measures, comprehensively assisting SMMEs nationwide in upgrading and transforming to secure Taiwan’s leading position in international markets.

In his speech, President Lai specifically highlighted that while Taiwan’s industrial structure boasts world-renowned semiconductor and high-tech giants, it is the dense supply chain and local economies composed of hundreds of thousands of SMMEs that truly underpin social stability and employment prosperity. However, these enterprises generally face the practical challenges of smaller scale and relatively limited financial and technological resources. Therefore, the government must go beyond verbal support and provide substantive aid through concrete policy tools and fiscal budgets. This NT$100 billion fund, to be invested gradually over the next eight years, will be systematically allocated to critical areas, accompanying SMMEs through the painful transition period and enabling traditional industries to catch up with contemporary changes.

Amid this wave of transformation, the President placed special emphasis on the importance of applying artificial intelligence (AI) technology. He noted that while AI has often been perceived as the exclusive domain of large tech corporations or high-tech factories, future competition will be comprehensive. SMMEs must shed traditional operational mindsets and actively adopt AI technology to optimize production processes, reduce costs, and enhance product value-added. The government’s additional resources will focus on helping businesses integrate AI into their daily operations and manufacturing, allowing traditional SMMEs to cross the threshold into the high-tech sector, thereby boosting overall industrial productivity and adaptability in global markets.

Taichung, a major hub for Taiwan’s hardware and hand tool industries, hosted this exhibition which served not only as a focal point for domestic and international buyers but also as a crucial showcase for the strength of Taiwan’s traditional manufacturing sector. Many local "hidden champion" enterprises, facing multiple challenges including geopolitical risks, carbon tariff pressures, and an aging population structure, have long awaited substantive government assistance. President Lai’s decision to announce this NT$100 billion industrial support policy in Taichung carries significant symbolic weight, directly responding to the voices of local industries and sending a clear signal to global supply chain partners that the Taiwanese government will continue to serve as the strongest backstop for traditional industries and small and medium-sized enterprises.

From a broader national development strategy perspective, this policy aligns with Taiwan’s long-standing administrative pillars of "Balanced Development" and becoming an "Economic Empire of the Rising Sun." As the global economy moves toward a dual track of digitalization and green sustainability, Taiwan must not rely solely on a few tech giants to maintain the strong momentum of its export-oriented economy. Instead, it must ensure that the vast base of SMMEs upgrades in tandem, forming a resilient industrial ecosystem. Through this eight-year, NT$100 billion additional investment, the government aims, through the collaborative efforts of industry, government, academia, and research institutions, to open a new golden period of growth for Taiwan’s SMMEs and solidify Taiwan’s pivotal and unshakable position in future global trade competitions.