Taiwan's Traditional Industries Struggle To Keep Pace With AI Boom
By Ryan Wu/Lily LaMattina
Taiwan’s AI boom is bringing major benefits to parts of the economy but traditional industries say they are being left behind. The Chinese National Federation of Industries, which represents more than 150 domestic industry associations, is urging the government to provide more support.
REPORTER:
Taiwan cannot rely on AI alone.
That’s the message from the National Federation of Industries, which represents more than 150 domestic industry associations.
The group says AI is creating enormous wealth, but that traditional businesses and their workers are not sharing equally in the current economic boom.
REPORTER:
The federation says government resources have become too concentrated in the semiconductor and IT sectors.
It says traditional industries still form the backbone of Taiwan’s economy.
REPORTER:
They are urging the government to provide more support for traditional industries through subsidies and other measures.
Pan Chun-jung (CHAIR, CNFI):
I suggest [the government] lend money to traditional industries. As these industries make money they can pay interest while also paying taxes. It's a win-win [for the government] and it would be very positive for Taiwan as a whole.
REPORTER:
The group surveyed 161 member associations across ten major industries.
It identified three major challenges: labor shortages, industrial transformation and energy constraints.
It says mitigating the shortage of workers is of utmost concern.
It encouraged the government to relax restrictions on hiring foreign workers and strengthen worker protections.
Chan Cheng-tien (VICE CHAIR, CNFI):
We recommend that the government comprehensively review and relax recruitment restrictions, shifting from a management-based approach toward a more comprehensive matching model so that all industries facing labor shortages can get the additional personnel they need.
REPORTER:
Energy security is another concern.
The federation says a stable power supply is vital not only to traditional industries but also to AI development.
It says all types of energy, including nuclear energy, should be considered.
REPORTER:
For these businesses, the concern is not that the semiconductor sector is “too strong” but whether its success can pull other industries up rather than crowd them out.
Ryan Wu and Lily LaMattina in Taipei for TaiwanPlus.
