The National Science and Technology Council yesterday proposed that next year’s technology budget be trimmed to NT$160.1 billion (US$5.44 billion) amid a significant reduction in the central government’s revenue as new allocation rules take effect.
The council at the beginning of this year had proposed an annual 13 percent hike to NT$180 billion for next year to fund the advancement of the semiconductor and artificial intelligence (AI) industries, as well as other strategic industries.
The revised budget still marks a new record, but would only be a 0.4 percent rise from this year’s NT$159.5 billion budget, the council said.
Photo courtesy of the National Science and Technology Council
The downward revision came as the central government expects a 28 percent reduction in annual revenue following revisions to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法).
When the new rules are applied next year, the central government’s spending power would fall by NT$375.3 billion annually, Directorate-General of Budget, Accounting and Statistics data showed.
Local governments would get a bigger share of the total revenue, the act says.
The council called on lawmakers and the Cabinet to better communicate with each other, and to boost 2027’s technology budget to NT$180 billion.
The technology budget is part of the government’s efforts to enhance Taiwan’s technology prowess and boost supply chain resilience, given growing competition and geopolitical risks.
The technology budget would be allocated mainly for the “five trusted industries”: semiconductors, AI, defense, security, surveillance and next-generation communications.
The agency proposed NT$21.19 billion for the Chips Team Taiwan program, accounting for the largest portion of the technology budget.
About NT$10.27 billion was earmarked for the government’s net zero emissions project and NT$4.39 billion to fund next-generation communications technology, the council said.
About NT$2.23 billion was earmarked for the project to foster a “new Silicon Valley” in Tainan and NT$2.29 billion would be allocated to support smart robot development, it said.
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