The AI boom is reshaping the global economy and driving a new wave of growth in the semiconductor industry. The South Korean government recently proposed establishing a “Future Response Fund.” The initiative would channel part of the additional tax revenue generated by the semiconductor boom into programs for young people, talent development, regional development, and AI. Its goal is to turn short-term revenue from a cyclical upswing into capital that strengthens long-term growth capacity. Da-Nien Liu, Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), said Taiwan could draw valuable lessons from South Korea’s approach.
Liu said Taiwan’s economic performance during the current AI boom has been even more remarkable. Economic growth is expected to reach 11% this year, driven by strong exports of semiconductors, AI servers, and high-performance computing equipment. AI has become a major engine of economic growth. However, the key issue is not whether Taiwan is reaping an AI dividend, but how to spread the benefits beyond a small number of companies and industries to society as a whole.
Shifting the Debate from “Whether to Distribute Cash” to “How the Benefits Should Be Allocated”
Under the banner of “Sharing the AI Dividend with All,” the government plans to distribute NT$10,000 in cash to every person next year. Public debate has gradually shifted from whether the government should make the payments to how much it should distribute. Liu said the more important policy question is how much of the AI-driven fiscal dividend should support current income distribution and how much should be converted into future productive capacity.
Universal cash payments allow people who do not participate directly in the AI industry to share in the benefits of economic growth and may also stimulate consumer spending. However, such payments primarily address income distribution and cannot resolve productivity disparities on their own. By comparison, South Korea’s plan to invest part of its additional fiscal resources in talent, AI, and regional development places greater emphasis on building long-term capabilities. The two approaches are not mutually exclusive. The key is to strike the right balance.
Sharing the Benefits Means More Than Distributing Cash: Taiwan Should Also Invest in Talent, AI Transformation for SMEs, and Regional Development
Liu said Taiwan’s current challenge is not a lack of growth, but the concentration of that growth. AI has significantly increased productivity, profits, and wages in the semiconductor and technology industries. However, many traditional industries, small and medium-sized enterprises, and some service sectors continue to struggle with low demand and productivity.
If AI-driven productivity gains do not spread to other industries, the gap between rapid GDP growth and the benefits experienced by the public may continue to widen. AI dividend policies should therefore do more than distribute money. Policymakers should also consider how to equip workers outside the technology sector, local industries, and SMEs with the capabilities to use AI to improve efficiency and raise incomes.
Specific measures could include AI adoption subsidies and digital transformation vouchers to reduce the cost of software, cloud services, and automation equipment for SMEs. Taiwan could also establish shared AI platforms and computing resources for industries to lower AI adoption barriers among smaller businesses. Expanded on-the-job training and workforce transition programs could help workers in traditional industries and service sectors develop the skills needed to use AI tools. Local governments could work with universities, applied research institutions, and industry clusters to establish regional AI application centers. These initiatives would transform AI from a technological advantage concentrated among major technology companies into a productive tool accessible to a wider range of industries.
Sharing AI Dividends with All Requires Sharing “Income, Capabilities, and Opportunities”
Liu said genuinely sharing AI dividends with all citizens involves at least three dimensions. The first is income sharing, which allows the public to share in the economic gains. The second is capability sharing, which directs resources toward talent development and AI transformation among small and medium-sized enterprises. The third is opportunity sharing, which enables young people, traditional industries, and different regions to participate in the new growth opportunities created by AI.
The semiconductor and AI industries are particularly cyclical, and the current increase in tax revenue may not be sustainable over the long term. If all temporary windfall revenue is converted into current spending, the dividends could quickly disappear when the economic cycle reverses. Setting aside part of the revenue as a fiscal reserve and investing it in talent, technology, and industrial transformation would instead strengthen Taiwan’s resilience against the next economic downturn.
Policy choices should therefore not be reduced to whether the government should distribute cash, nor should the discussion focus solely on whether each person should receive NT$10,000 or more. The real question is how to strike a better balance between sharing the benefits today and investing for the future. While sharing economic gains during times of robust growth is important, it is even more critical for Taiwan to transform its one-time AI dividend into enduring capabilities that can perpetually generate income, employment, and competitiveness.
The current AI boom presents Taiwan with a rare development opportunity. However, the semiconductor industry is cyclical, and AI investment cannot maintain its current rapid growth indefinitely. The true value of this dividend will not be determined by the scale of GDP growth or the amount of cash distributed to each person. It will depend on whether Taiwan can develop more AI-skilled professionals, more competitive SMEs, greater opportunities for young people, and emerging industries capable of driving the next wave of growth.
Liu said the real objective of “Sharing the AI Dividend with All” should extend beyond distributing the cash benefits. It should enable more people to participate in AI, use AI, and even create the next wave of AI dividends. Taiwan’s more important policy challenge in the AI era is how to use its current fiscal space to transform today’s prosperity into productivity and competitiveness over the next 10 to 20 years.
Author: CIER Editorial Team
Date: August 28, 2026