NDC aims for AI industry to be valued over NT$1 trillion by 2026

Taipei, Aug. 15 (CNA) The National Development Council (NDC) said Thursday that the government would continue to promote the development of artificial intelligence (AI), semiconductors and other advanced technologies, aiming to boost the value of Taiwan's AI industry to over NT$1 trillion (US$30.96 billion) by 2026.

At the same time, the semiconductor industry is expected to generate an additional NT$2.65 trillion over the next four years, NDC deputy head Kao Shien-quey (高仙桂) said while discussing the council's "National Development Plan" from 2025 to 2028 at a press briefing.

The new edition of the NDC strategy was approved by the Cabinet at a meeting earlier the same day.

According to the government-sponsored Market Intelligence and Consulting Institute, Taiwan's semiconductor industry is forecast to reach a total value of NT$4.17 trillion in 2024, representing a year-on-year growth of 13.6 percent.

Kao added that under the NDC plan, information security and military drone businesses were estimated to be valued at approximately NT$130 billion and NT$30 billion by the end of 2028.

The NDC official noted that the plan was based on President Lai Ching-te's (賴清德) policy platform first introduced in September 2023, when he was running for president.

Details on how the executive body plans to achieve the goals will be released next week, she said.

Lai made numerous policy pledges under the platform, dubbed the "National Project of Hope," including promoting the development of advanced technologies, strengthening the social welfare system, and enhancing Taiwan's defense capabilities and resilience to climate shocks.

The NDC strategy took the potential challenges posed by climate change into consideration, as well as the increasingly volatile geopolitical situation and the uncertain prospects of China's economy, among other external factors, according to the council.

At the press event, NDC senior official Chang Hui-chuan (張惠娟) said if the government successfully implemented the updated national development plan, it could maintain the country's average annual economic growth rate between 2.8 and 3.6 percent over the next four years.

The Directorate-General of Budget, Accounting and Statistics (DGBAS) under the Cabinet has forecast Taiwan's economy to grow 3.94 percent in 2024.

In addition, Chang said the gross domestic product (GDP) per capita in Taiwan is projected to surpass US$40,000 in 2027 and reach US$42,787 by the end of 2028, compared to the DGBAS's prediction of US$33,610 for 2024.

Meanwhile, Chang noted that the core consumer price index (CPI), which excludes fruit, vegetables, and energy, is projected to maintain a 2 percent increase rate from 2025 to 2028, according to the plan.

She went on to say that the unemployment rate would remain between 3.2 to 3.5 percent, citing government figures that noted the average unemployment rate from January to June this year was 3.36 percent.

According to Chang, the NDC has rolled out national development plans every four years in accordance with presidents' policy platforms since 1953.