The much-needed funding for startups has arrived, with the Digital Development Ministry expected to launch a NT$10 billion investment plan by the end of March.
On February 27, the Digital Development Ministry (hereinafter referred to as the Ministry) held a press conference titled “Building Taiwan’s AI Industry Ecosystem,” outlining specific measures for the development of AI projects in Taiwan. These measures cover five key areas: computing power, data, talent, marketing, and funding. Among these, the most direct benefits for startups will be in the areas of funding, marketing, and computing power.
Recognizing that “funding” is a crucial resource for startup development, the Ministry has secured NT$10 billion in funding from the National Development Council by the end of 2024, specifically to invest in domestic AI startups and industries related to the digital economy, including software platforms, e-commerce, gaming, and other innovative information services. This NT$10 billion investment plan for AI startups is expected to officially begin accepting applications on March 28.
Deputy Minister Lin Yi-ching also emphasized that this is an investment rather than a subsidy; thus, it will be initiated by private venture capital, with the Ministry co-investing. The Ministry has already selected 15 matching investors (venture capital firms). Once the venture capitalists submit their investment lists and receive approval from the Ministry and the National Development Council, the investment will be matched at a 1:1 ratio.
Deputy Minister Lin Yi-ching stated that the government’s NT$10 billion investment will be led by the private sector.
Photo / Tseng Ling-huai
Regarding the computing power required for AI development, the Ministry has made available 32 NVIDIA H100 GPUs and 8 AMD MI300X GPUs, totaling 40 GPUs for startup use, although this is limited to proof-of-concept applications. In 2024, the Ministry has assisted 60 companies in training 88 models, including a medical startup, Rui Chuan Data, which used 80,000 pieces of data to train an AI detection model for chest lesions in X-ray images. This model has received a Class II Medical Device License from the Ministry of Health and Welfare’s Food and Drug Administration.
Photo / Digital Development Ministry
Promising startups must be visible, and the Ministry will continue to hold “Industry AI Exchange and Matching Demo Days.”
Lastly, the Ministry has recently introduced the “Marketing” aspect. In addition to providing computing power and investment funds, to facilitate the practical application of AI, the Ministry will hold “Industry AI Exchange and Matching Demo Days” starting in 2024, inviting 8 AI companies to present to 40-60 potential clients each time, in order to promote possibilities for commercial cooperation.
Lin Yi-ching cited an example from last year’s session focused on long-term care, where Smart Age Technology showcased a product developed using IoT technology that automatically records the activities of seniors, thereby reducing the handwritten burden on healthcare workers. This product was eventually implemented in Tainan City’s Anxin Nursing Home, Hua En Nursing Home, and Mei You Long-term Care System.
Photo / Digital Development Ministry
In 2025, the Ministry plans to hold five “Industry AI Exchange and Matching Demo Days.” As for how to become a startup that presents on stage, the Ministry stated that any company that has previously applied for computing resources, has been nominated for investment by venture capital this year, or directly applies to the Ministry for “AI Technology Service Agency Energy Registration” can be included in the potential sharing list. Additionally, the Ministry will also inquire with vendors about their needs to find suitable startups to share.
Regarding the layout of “talent” and “data” in AI, the Ministry indicated that it will collaborate with the private sector. Issues concerning the completeness and privacy of open-source training data will be addressed through the “Regulations for Promoting Innovative Utilization of Data Development.”
Lin Yi-ching emphasized that the government can ultimately only play a supporting role; these policies and measures are primarily aimed at building the right platforms and bridges for private sector development, as fostering internationally competitive AI companies and applications from the private sector is key to Taiwan’s sustainable development.