Taiwan Launches the “Great Southern Silicon Valley” Initiative Shalun to Drive Taiwan’s AI Era and Emerge as a Global Smart Green Energy Hub

Tainan, Taiwan – The Taiwan government has announced the launch of the “Great Southern Silicon Valley” initiative, designating the Shalun Smart Green Energy Science City in Tainan as the nation’s core AI Industry Special Zone The initiative aims to align with global AI industry trends and strengthen Taiwan’s competitiveness in the international technology landscape.

Between 2026 and 2029, the program will establish a 200 PF (PetaFLOPS) Supercomputing Center—a facility capable of performing 200 quadrillion floating-point operations per second. This state-of-the-art center will provide essential computational power for advanced applications such as large-scale AI model training, smart manufacturing, medical technology, and green energy R&D. The creation of this Supercomputing Center not only responds to the global demand for high-performance computing but also represents a major step toward building Southern Taiwan’s “AI × Semiconductor × Green Energy” innovation corridor.

Tainan Mayor Huang Wei-Che emphasized that the city government is actively cooperating with central authorities through measures such as R&D subsidies, investment promotion, and international collaboration platforms. This initiative complements Taiwan’s “Ten AI Infrastructure Projects”, which cover supercomputing, cybersecurity R&D, and applications in smart healthcare and intelligent transportation. Mayor Huang underscored that talent cultivation and global collaboration are central to Shalun’s strategy. The city will introduce international research institutions and establish AI safety and semiconductor training platforms to meet corporate demand for advanced R&D and skilled professionals. This approach will not only strengthen Taiwan’s domestic talent base but also attract world-class research teams, fostering an innovation ecosystem connected to global networks.

Tainan Economic Development Bureau Director Chang Ting-Yuan noted that Shalun’s role extends beyond the Supercomputing Center. It will also integrate AI cybersecurity R&D, semiconductor training platforms, and smart living applications, embedding AI technologies into daily life to address social challenges. Demonstration projects are already being planned, including smart dining and digital healthcare, with future expansion into smart mobility, disaster prevention, and net-zero carbon solutions. For example, autonomous vehicles will leverage AI-powered traffic signals with edge-computing capability for real-time scheduling, while wearable medical devices connected to cloud platforms will provide instant health feedback to medical professionals—gradually transforming Shalun into a model of AI-powered daily living.

Director Chang further highlighted that Tainan’s robotics industry cluster has also been incorporated into Southern Taiwan’s smart industry blueprint. By combining advanced manufacturing with AI technologies, the cluster will enhance smart manufacturing, precision medicine, and life-care services, strengthening both the depth and diversity of Taiwan’s industrial value chain.

According to the Bureau, the global AI market is projected to grow from USD 294.16 billion in 2025 to USD 1.77 trillion by 2032, with a compound annual growth rate (CAGR) of 29.2%. AI is now widely regarded as the driving force of the Fourth Industrial Revolution and a decisive factor in national competitiveness. Much like electricity or the internet, AI has evolved into a General-Purpose Technology (GPT), rapidly permeating industries such as manufacturing, healthcare, finance, and transportation, while fueling disruptive innovations and new business models. In this global race, mastery of independent computing power, data infrastructure, and key technologies has become a critical benchmark of national potential. Against this backdrop, the Shalun Supercomputing Center represents not only an economic investment but also a strategic cornerstone for securing Taiwan’s position in the global technology arena.

The Shalun AI Industry Special Zone Management Office emphasized that Shalun is more than a technology showcase; it is a living laboratory for future smart cities, where visionary concepts are transformed into everyday experiences. With the rapid expansion of the global AI market, Shalun—together with the Southern Taiwan Science Park and the robotics industry cluster—will serve as an engine for Tainan’s economic growth and a catalyst for Taiwan’s next competitive advantage. This momentum will position Southern Taiwan as a core hub for national innovation and sustainable development, and a rising “Silicon Valley of Asia” on the global stage.

Energy Administration, MOEA, Taiwan／Economic Development Bureau, Tainan City Government (Advertisement)