Taiwan is emerging as a smart building leader in Asia, combining cybersecurity, IoT innovation, and early certification systems to drive intelligent, human-centric infrastructure. Its pioneering role is helping shape both regional policies and global standards.
Taiwan, the global leader in semiconductor manufacturing, is capitalizing on surging AI chip demand, driven by advancements in practical AI applications and TSMC’s dominant role. However, rising tariffs and U.S.-China tensions present notable challenges for the industry.
Taiwan is advancing AI sovereignty by developing large language models that preserve local languages, cultural identity, and democratic values—positioning itself as a counterweight to China’s DeepSeek-R1 and other authoritarian-influenced AI systems.
Facing rising power demand and energy security risks, Taiwan is cautiously reconsidering nuclear energy, exploring next-gen technologies like SMRs and LMRs, while balancing political sensitivities, business needs, and long-term green goals.
Once stalled by regulatory ambiguity, Taiwan’s geothermal sector is finally gaining traction with new permitting rules and growing public-private partnerships. But to scale this overlooked energy source, the country must overcome drilling challenges, data gaps, and fragmented policymaking.
Regulatory uncertainty continues to cloud Taiwan’s offshore wind ambitions, even as the government pledges to ease local content rules. While the sector has made impressive gains, investors remain cautious amid lingering red tape, infrastructure bottlenecks, and a shift to a high-risk, market-driven model.
As Taiwan’s crypto market grows, regulators are moving away from a light-touch approach to prevent fraud and protect investors. New legislation aims to tighten oversight of digital asset firms and bring stability to the evolving sector.
Taiwan is positioning itself as a regional asset management hub with the launch of the Financial Supervisory Commission’s (FSC) Asia Asset Management Center initiative. With a booming ETF market, regulatory easing, and plans for localized asset management zones, the initiative aims to attract investment, retain capital, and enhance Taiwan’s financial competitiveness amid regional shifts.
Taiwan’s push to become a regional asset management hub has seen modest progress, with growth largely limited to domestic banks. While the Lai administration is accelerating deregulation and promoting Kaohsiung as a financial hub, experts say further reforms are needed to attract foreign capital and compete globally.
Taiwan will launch a carbon fee program for large emitters in 2026, aiming to balance environmental goals with industrial competitiveness while progressing toward its 2050 net-zero target.
