Reduced budget proposed for technology sector in 2026 by council
The National Science and Technology Council (NSTC) in Taiwan has proposed a revised technology budget of NT$160.1 billion for next year, marking a significant reduction from the initial NT$180 billion proposal. This downward revision is a result of revisions to the Act Governing the Allocation of Government Revenues and Expenditures, leading to a 28% reduction in the central government's revenue.
Despite the reduction, the revised budget still represents a new record, with a 0.4% rise from this year's NT$159.5 billion budget. The proposal, made yesterday, is aimed at funding the advancement of strategic industries, including the semiconductor and artificial intelligence (AI) sectors, as well as defense, security, surveillance, and next-generation communications.
The Chips Team Taiwan program, a significant portion of the technology budget, is allocated NT$21.19 billion, the largest portion of the budget. Other key projects include NT$10.27 billion for the government's net zero emissions project, NT$4.39 billion for next-generation communications technology, and NT$2.23 billion for the project to foster a "new Silicon Valley" in Tainan.
The technology budget also includes funding for various strategic industries such as net zero emissions, next-generation communications, and smart robot development, with NT$2.29 billion earmarked for the latter. Local governments are expected to get a bigger share of the total revenue according to the new act.
However, the specific adjustments made by the NSTC to the 2023 technology budget due to changes in the Act Governing the Allocation of Government Revenues and Expenditures are not detailed in the current search results. For precise details, official government budget documents or NSTC reports from 2023 would be required.
It is worth noting that the NSTC collaborates on international research initiatives, such as joint projects with the Philippines’ Department of Science and Technology (DOST), involving joint research, exchange of experts, capacity building, and funding for various scientific proposals. Taiwanese government agencies also continue to prioritise sectors including health, agriculture, culture, and creative content, backed by ongoing government initiatives and significant funding commitments.
In a broader context, the Executive Yuan and political conditions can affect budget allocations, as seen from recent years where budget cuts and freezes impacted defense and other government spending, driven by political party changes in the legislature. A major special budget related to national security resilience was proposed recently (NT$410 billion), but this pertains to 2025 and is beyond the 2023 timeframe; its relation to technology spending is not specified in the results.
In conclusion, while the revised technology budget for 2023 in Taiwan has been proposed, the specific adjustments made due to legislative changes to the Act Governing the Allocation of Government Revenues and Expenditures are not yet fully disclosed. Official government budget documents or NSTC reports from 2023 would provide more detailed insights into these adjustments and the exact industries and projects funded for that year.
The revised technology budget for 2023, despite a significant reduction from the initial proposal due to revisions in the Act Governing the Allocation of Government Revenues and Expenditures, still prioritizes strategic industries such as semiconductor, artificial intelligence, defense, security, surveillance, and next-generation communications.
A large portion of the technology budget, NT$21.19 billion, is allocated for the Chips Team Taiwan program, reflecting the government's continued focus on technology advancement and industrial growth.
