Kaohsiung: Taiwan is planning to transform Kaohsiung into a national silicon photonics hub as part of its broader strategy to advance artificial intelligence. Yeh Chun-hsien, head of the National Development Council (NDC), announced this initiative during a legislative hearing, highlighting the country’s commitment to technological growth.

According to Focus Taiwan, Yeh revealed that the Ministry of Economic Affairs (MOEA) is currently deliberating the establishment of a silicon photonics hub in Taiwan, with Kaohsiung being a favorable location. This decision aligns with the city’s strengths in developing computing capabilities, as highlighted by Kaohsiung-elected lawmaker Lin Dai-hua.

The city is already attracting tech giants like Hon Hai Precision Industry Co., the world’s largest contract electronics manufacturer, which plans to set up a computing center there. The shift from copper to optical fibers in silicon photonics promises faster data transmission with reduced delay and energy consumption, particularly crucial in the AI era.

The Executive Yuan’s push for AI development includes silicon photonics, quantum computing, and robotics as critical technologies. A report by the NDC, Taiwan’s top economic planning agency, emphasized these developments. Additionally, a government-approved plan aims to create a local Silicon Valley in southern Taiwan, beginning at Tainan’s Shalun Smart Green Energy Science City and extending to a semiconductor cluster connecting science and technology parks in Chiayi, Tainan, Kaohsiung, and Pingtung.

Taiwan Semiconductor Manufacturing Co. (TSMC) is contributing to this technological growth by developing the advanced 2 nanometer process in Kaohsiung, expected to commence commercial production later this year.

Addressing concerns about a potential AI bubble, Yeh differentiated the current AI landscape from the early 2000s dot.com bubble, noting that enterprises are establishing data centers, with AI applications gradually reaching end users.

According to the NDC, Taiwan’s AI development efforts are projected to generate NT$7 trillion (US$228 million) in production value and create 180,000 high-paying jobs by 2028, positioning Taiwan as the 14th largest AI developer globally. By 2040, production value could reach NT$15 trillion, with 500,000 jobs, making Taiwan the fifth largest AI developer.