Cho says 2027 budget balances tech, security, debt

TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) said Monday that the 2027 central government budget will expand public services, support technology, strengthen national security, and keep debt under control.

Speaking at the 2026 Taiwan-Japan Semiconductor Technology Forum, Cho said the Cabinet will present the proposed budget to President Lai Ching-te (賴清德) in the coming days. It plans to submit the budget to the legislature by late August, CNA reported.

The budget will fund the government’s 10 major AI infrastructure projects and 13 key strategic industries. Cho said spending will cover talent, research and development, energy, infrastructure, and regulatory changes.

Cho also called for closer semiconductor cooperation between Taiwan and Japan. He said Japan is strong in materials, equipment, and precision manufacturing, while Taiwan has advantages in chip manufacturing, design, and information technology.

Several of Taiwan’s 13 strategic industries overlap with the 17 strategic fields promoted by Japanese Prime Minister Takaichi Sanae, Cho said. He said the overlap could support deeper cooperation.

Cho cited TSMC’s investment in Kumamoto as an example. Its first fab began mass production in 2024, while a second plant is expected to use more advanced chipmaking processes.

Total investment in the two plants exceeds about NT$813 billion (US$25.89 billion). Cho said the projects show the potential for closer industrial cooperation.

He said AI is moving from cloud computing to real-world applications. These include robotics, smart manufacturing, vehicle electronics, and autonomous vehicles.

Cho said Taiwan and Japan should jointly develop new technologies and expand into global markets. He said the goal should be a stable, long-term partnership.

Bilateral trade has reached US$84.8 billion, with high-tech products accounting for a large share, Cho said. He added that the government must provide land, talent, energy, and other resources to help Taiwanese industries compete globally.