Taiwan warns of the consequences of the parliament's decision to cut funding for the semiconductor and artificial intelligence industries.

The Taiwanese Ministry of Science and Technology warned on Friday of a significant decline that could reach NT$20 billion (approximately US$609.11 million) in funding allocated for important sectors such as semiconductor chips, artificial intelligence, and aerospace in the coming year, after parliament passed legislation imposing cuts on technology spending. This warning from the Ministry of Science and Technology in Taiwan follows a warning from the Ministry of Economic Affairs last Tuesday, indicating that recent parliamentary decisions could severely affect Taiwan's cooperation with major American technology companies such as Micron, AMD, and Nvidia, noting that lower public budgets will impact Taiwan's international partnerships in chip technology and artificial intelligence. This came after the Taiwanese opposition parties, which have a majority in the country's parliament, passed legislation last week requiring a redirection of spending from the central government to local municipalities while cutting government spending on technology, a move that was strongly opposed by the ruling Democratic Party and thousands of protesters. Preliminary estimates from the Ministry of Economy suggest that technology spending allocations could be reduced by NT$29.7 billion in the coming year, with NT$11.6 billion allocated for cuts to technology projects. It is worth noting that the American company Micron is the largest foreign direct investor in Taiwan, and the company, along with AMD and Nvidia, has submitted requests for technology cooperation projects with the Taiwanese government, partially supported by government funding.