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Taiwan's science ministry warns spending cuts could hit chips, AI funding

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Taiwan's science ministry warned on Friday that funding for areas such as semiconductors, AI and aerospace could be reduced by T$20 billion ($609.11 million) for next year after opposition parties passed laws requiring cuts to economic and technology spending.
Taiwan's Ministry of Science and Technology has issued a warning about the potential risks associated with the country's heavy reliance on research and development (R&D) spending. According to the ministry, while Taiwan has been increasing its R&D investments to stay competitive in technology sectors like semiconductors and AI, this approach could lead to diminishing returns if not managed properly. The ministry highlighted concerns over the efficiency of R&D spending, suggesting that without strategic focus, Taiwan might not achieve the desired innovation outcomes. They emphasized the need for better integration between industry needs and academic research, as well as fostering more international collaborations to enhance the impact of R&D investments. This comes at a time when global tech competition is intensifying, and Taiwan aims to maintain its edge in high-tech industries.

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