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Taiwan's science ministry warns spending cuts could hit chips, AI funding
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Taiwan's science ministry warns spending cuts could hit chips, AI funding
Dec 27, 2024 3:52 AM

TAIPEI, Dec 27 (Reuters) - Taiwan's science ministry

warned on Friday that funding for areas such as semiconductors,

AI and aerospace could be reduced by T$20 billion ($609.11

million) for next year after opposition parties passed laws

requiring cuts to economic and technology spending.

Taiwan's opposition parties, which hold a majority in

parliament, passed legislation last week to redirect spending

from the central government to local municipalities, a move

strongly opposed by the ruling Democratic Progressive Party

(DPP) and thousands of protesters.

Taiwan's Ministry of Science and Technology estimate comes

after the Ministry of Economic Affairs on Tuesday warned that

the country's collaboration with tech companies, such as Micron

, AMD and Nvidia ( NVDA ), could be affected and

that insufficient future budgets would affect Taiwan's

international AI technology partnerships.

The economic ministry's spending for next year is projected

to be reduced by T$29.7 billion, with T$11.6 billion earmarked

for cuts to technology projects, according to its calculations.

Micron has been Taiwan's biggest foreign direct investor.

Micron, AMD and Nvidia ( NVDA ) applied for technology collaboration

projects with the Taiwan government, with partial government

funding support.

($1 = 32.8350 Taiwan dollars)

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