Taiwan Approves Southern Silicon Valley Plan to Lead the Future of AI and Semiconductors

Taiwan’s Ambitious Plans for a High-Tech Transformation in the South

Taiwan's Executive Yuan has approved the "Greater Southern New Silicon Valley Promotion Plan," aiming to transform the southern region into a global technology powerhouse.

The initiative focuses on establishing an S-shaped semiconductor corridor across Tainan, Chiayi, Kaohsiung, and Pingtung.

The project integrates these areas into a unified technology industrial cluster to accelerate the nation's progress in artificial intelligence (AI) and advanced technologies.

Building an AI Ecosystem with Public-Private Collaboration

The plan prioritises creating an environment conducive to AI innovation.

High-performance computing infrastructure, extensive data storage systems, and advanced R&D capabilities will be developed in partnership with private enterprises.

Tainan’s Shalun Green Energy Science City is at the centre of this initiative, offering resources such as a cybersecurity service hub and an AI talent development programme targeting small and medium-sized enterprises (SMEs).

According to Su Chen-kang, Vice Minister of the National Science and Technology Council, collaboration between industries and academia will play a key role.

He said,

"We hope all supporting measures will be coordinated to attract major international and domestic companies that value talent to set up R&D centres in southern Taiwan."

Strengthening Infrastructure to Support Growth

To meet the increased demand for essential resources, the government is planning significant upgrades.

Measures include connecting reservoirs in the south to improve water supply resilience, expanding water recycling facilities, and ensuring stable electricity through renewable energy solutions, upgraded grids, and energy efficiency improvements.

Additionally, the region will benefit from enhanced transportation networks, housing, and healthcare facilities, including the construction of six large hospitals to complement the existing 54 hospitals.

Educational infrastructure will also expand to accommodate families of technology professionals, with plans to improve English proficiency and streamline foreign credential recognition to attract global talent.

A Vision for Economic Balance Across Taiwan

Premier Cho Jung-tai has framed this initiative as part of a broader strategy to develop six economic regions across Taiwan.

While the southern tech corridor focuses on semiconductors, AI, biotech, and smart agriculture, other regions like Taichung-Changhua-Nantou-Yunlin will emphasise precision manufacturing, and Yilan-Hualien-Taitung-Pingtung will concentrate on enhancing living standards and cultural tourism.

Cho said during the Cabinet meeting,

"The purpose of innovation-driven development is to benefit the public."

He urged ministries to align their efforts in talent cultivation, resource management, and infrastructure support.

A Cabinet official shares plans for a "New Silicon Valley" in southern Taiwan during a press conference after yesterday's Cabinet meeting in Taipei.

Global Competitiveness Through Industrial Integration

By fostering collaboration between industries, academia, and the government, Taiwan seeks to solidify its global standing in semiconductors and AI technologies.

Initiatives include creating chip and system integration platforms and bolstering the country's drone, space technology, and precision machinery sectors.

The Cabinet envisions this strategic corridor as not only a domestic technology hub but also a model for global industrial integration, ensuring that Taiwan leads in the AI-driven era while advancing its journey toward net-zero carbon emissions.