As Taiwan strives to cement its position as a global AI powerhouse, a looming workforce shortage threatens to disrupt its ambitious plans.
Two conflicting trends shape Taiwan’s economy, and how this tension is resolved will play a significant role in determining its future trajectory.
On the one hand, Taiwan is a global high-tech powerhouse. In addition to producing the majority of the world’s advanced semiconductors, Taiwan is a dominant force in manufacturing artificial intelligence servers.
The government is hopeful that Taiwan can further position itself as a critical hub for the global AI industry. As National Science and Technology Council Minister Wu Cheng-wen notes, Taiwan aspires to become an “AI Island.”
On the other hand, Taiwan faces a declining birthrate, leading to a shrinking labor force. The National Development Council (NDC) estimates that by 2028, the workforce will be short by around 350,000 people, with that number expected to rise to 480,000 by 2030.
One of the sectors most affected by these labor shortages is AI. Jeff Lin, vice president at the government-funded Industrial Technology Research Institute (ITRI), points to the approximately 24,000 AI-related job postings every month in Taiwan, citing a study from New Taipei-based HR consulting services company 104 Job Bank. He highlights six key roles that are in high demand: application engineer, domain-specific application engineer, data engineer, AI and data scientist, AI project manager, and AI consultant.
The government has two main pathways to address the shortage of AI professionals. One option is to recruit talent internationally, attracting skilled workers from abroad. The other is to focus on nurturing talent domestically by investing in education and training programs to develop a homegrown workforce.
In its efforts to recruit talent from the international community, the Ministry of Economic Affairs (MOEA) stated in an email response to TOPICS that Taiwan plans to leverage its global reputation as a critical semiconductor hub to attract high-achieving foreign students. The aim is to encourage these students to study and eventually work in Taiwan, helping to address the country’s talent shortages in critical industries like AI.
The MOEA, in collaboration with the Ministry of Education (MOE) and the NDC, is currently developing a program aimed at attracting high-achieving foreign students. Under this initiative, students will receive two years of study at Taiwanese universities, with customized curricula tailored to industry needs, followed by four years of work experience. The government will cover the costs of establishing the university courses and tuition fees, while living expenses will be funded by companies participating in the program.
“The hope is we nurture 25,000 international talents every year,” MOEA says. The ministry adds that the plans are still being finalized, and it cannot yet disclose the companies that will participate in the program. However, it notes that in early September, MOEA Minister Kuo Jyh-huei, along with other senior officials, held a seminar with representatives from various companies to discuss talent cultivation. In addition to over 20 prominent industry associations, representatives from major companies like AMD, Delta Electronics, Infineon, Microsoft, and Nvidia were invited to participate in the discussions.
International talent initiatives
Before the program is fully implemented, MOEA plans to hold targeted matchmaking to connect talented foreign students with Taiwanese companies. The ministry notes that 19,000 foreign nationals study in Taiwan each year, with 47% choosing to stay after graduation for various reasons. MOEA hopes to increase this retention rate.
Lin, who also serves as general director of ITRI’s Industrial Science and Technology International Strategy Center, emphasizes that the recruitment of foreign students will not be limited to South and Southeast Asian countries, contrary to some media reports.
He highlights a recent example where the Mexican state of Sonora, impressed by Taiwan’s technological leadership, awarded scholarships to 30 students to study the semiconductor industry in Taiwan. Lin notes that the government hopes these students will not only gain technical knowledge but also learn Mandarin and immerse themselves in Taiwanese culture, with the goal of either joining Taiwan’s workforce or returning to Mexico to apply their skills at Taiwanese companies.
Lin adds that some South American and Middle Eastern countries “have been in discussions or are in the process of making these arrangements” to send students to Taiwan. He also points out that Taiwan’s labor pool for young professionals could grow due to a new trend among overseas Chinese communities, where parents are increasingly sending their children to Taiwan for study and work. In past decades, these parents had typically encouraged their children to go to China. However, due to rising geopolitical tensions and safety concerns in China, Taiwan has become the preferred destination.
As part of other initiatives, MOEA wants foreign companies to establish AI research and development centers in Taiwan to either ensure that at least 50% of their R&D personnel are recruited from overseas or to collaborate with Taiwanese universities to develop this talent. According to Taiwanese media reports, U.S. tech giant Nvidia is currently developing an institute that includes a supercomputer named “Taipei-1.” Nvidia has reached an agreement with MOEA, guaranteeing that at least half of its planned workforce of 1,000 engineers focused on chip design, system design, and software engineering will be recruited from overseas to build a strong AI team.
Lin Xin-wu, a vice president at the Taiwan Institute of Economic Research (TIER), highlights additional avenues for foreign AI talent to work in Taiwan, such as the Taiwan Gold Card Employment Program. This program allows professionals to apply online for a Gold Card without the need for company sponsorship. The government then assesses their skills to determine if they meet Taiwan’s needs. Gold Card holders enjoy the flexibility to live in Taiwan, seek employment, and change jobs freely, making it an attractive option for skilled foreign professionals.
Lin Xin-wu also highlights the IC Taiwan Grand Challenge, which launched this year. Organized by the National Science and Technology Council, the initiative aims to identify promising global startups and academic groups specializing in IC design innovations and chip-based applications. The program seeks to connect these innovators with Taiwan’s industries. Top participants are invited to establish operations in Taiwan and are provided with funding to advance their chip innovations. “Taiwanese companies evaluate the talent to determine whether to hire or invest in them,” Lin says.
Some foreign observers argue that Taiwan has too much of a “factory mindset,” meaning it excels at producing AI hardware for other countries but has not fully integrated AI into everyday life domestically. Acknowledging that Taiwan’s strength lies in hardware manufacturing, ITRI’s Jeff Lin says that it is both an asset and a limitation. “You can see this either as a foundation for hardware and software integration – or a barrier,” he notes, adding that while the focus on production may hinder the broader adoption of AI-driven innovations within its own society.
One of Taiwan’s greatest deficiencies when it comes to AI, says TIER’s Lin Xin-wu, is that companies and professionals outside the high-tech sphere do not make use of AI to boost their operations. “We need all industries, the majority of companies, to have AI capabilities,” Lin says. Whether it’s manufacturing, production, product development, or even marketing, AI “is a powerful tool that enhances efficiency,” he adds.
For its part, MOEA is actively promoting AI training for professionals through various initiatives. One such effort this year involved collaboration with Amazon Web Services and Microsoft. On its website, Microsoft states that its vision is “to democratize AI so that every individual and every organization can apply AI and benefit from AI capabilities.”
In early August, the three organizations jointly launched a training program across Taiwan aimed at equipping professionals from various industries with foundational AI skills. The first classes were held in Tainan and Taichung, focusing on the application of AI in manufacturing. The program specifically targeted companies in sectors such as chemicals, textiles, machine tools, bicycles, and steel. By the end of August, 300 participants had completed the training, marking a significant step in Taiwan’s efforts to integrate AI across diverse industries.
MOEA is also collaborating with Microsoft and the Taiwan School of Artificial Intelligence to create AI teaching materials specifically tailored for the service industry, small and medium-sized enterprises, and multinational companies. Additionally, the ministry notes that the government will subsidize companies that wish to offer in-house AI training for their employees, further supporting the integration of AI skills across various sectors in Taiwan.
“There’s a lot of private and public partnerships,” says Jeff Lin. “There are incentives to encourage industries to offer on-the-job training with the support of academia or the ITRI College.”
MOE is also advancing efforts to develop AI skills across primary, secondary, and tertiary education levels. In a demonstration of this commitment, the government promoted Yeh Ping-cheng, an AI expert from National Taiwan University and former associate dean of its College of Design and Innovation, to serve as Taiwan’s deputy minister of education in May this year.
Jeff Lin says Taiwan’s younger generation is more creative than its predecessors and possesses the mindset needed to thrive in AI-related fields. This generation, he notes, is comfortable combining digital skills with liberal arts, an essential trait for working with AI.
He describes Taiwan’s public school system, from primary to secondary levels, as a significant asset, making education widely affordable and providing strong foundations in STEM education. MOE actively promotes various programs and competitions related to AI for both primary and secondary school students, further encouraging early exposure to AI and fostering talent from a young age.
One of the most notable examples of MOE’s efforts to cultivate AI talent domestically is the formation of the Taiwan Artificial Intelligence College Alliance, announced in early September. This alliance allows students to take AI courses across various institutions and earn certificates recognized by MOE. The ministry hopes these certificates will become a key qualification industries will seek when recruiting talent. Additionally, the alliance aims to promote collaboration among universities, further enhancing AI education and research across Taiwan.
Twenty-five universities have joined the alliance, which officially opened to students this fall, marking the start of the 2024-2025 academic year. However, in its initial phase, the program is primarily being implemented by National Taiwan University (NTU), National Tsing Hua University (NTHU), and National Cheng Kung University, with the other institutions set to join later.
The alliance will offer four specialized programs: AI Exploration and Application, AI Industrial Applications, AI and Natural Language Processing, and AI and Visual Technology Applications, providing students with a wide range of AI-focused educational opportunities.
MOEA is also promoting collaboration between Nvidia and NTU, NTHU, and National Yang Ming Chiao Tung University to establish courses aimed at cultivating AI research and development talent among master’s and doctoral students. This initiative is designed to equip advanced students with the skills necessary to drive innovation in AI, further strengthening Taiwan’s position as a leader in the global AI industry.
According to a Taipei Times report quoting NTU’s executive vice president, Nvidia has been collaborating with NTU for over a decade. More than a year ago, Nvidia donated NT$50 million to support the development of an AI research center at the university, further strengthening its longstanding partnership and promoting advancements in AI research and education.
These collaborations, alongside Taiwan’s broader initiatives in AI education and recruitment, are pivotal to addressing the nation’s workforce challenges. By fostering talent at home and abroad, Taiwan is well-positioned to bridge its talent gap and strengthen its standing as a global AI leader.
