How AI and Robotics Could Solve Taiwan’s Labor Shortage—and Why Energy Challenges Stand in the Way

Nvidia CEO Highlights AI and Robotics as Solutions to Taiwan’s Labor Shortages

During a May 23, 2025 visit to Taipei Songshan Airport, Nvidia CEO Jensen Huang emphasized the potential of AI and robotics to address Taiwan’s labor challenges. He urged the country to adopt “agentic AI,” which he describes as technology capable of step-by-step reasoning and problem solving. Huang pointed out that AI agents and robotics can take on various tasks in both workplaces and daily life. “Here in Taiwan, we have many great ideas, but there are not enough people,” he noted.

Energy Constraints Limit Taiwan’s AI Ambitions

Huang’s remarks also highlighted a critical challenge: Taiwan’s energy supply. The island’s power grid is already under pressure, and the rapid growth of its AI sector could conflict with national decarbonization goals. According to the Taiwan External Trade Development Council, the energy demand for AI projects is substantial. Nvidia’s planned “giant AI supercomputer” alone will require 20 megawatts initially, with potential growth to 100 megawatts.

Taiwan’s semiconductor industry, responsible for 92% of advanced computer chips worldwide, depends on a stable power supply to maintain production capacity. However, the government’s goal of sourcing 20% of energy from renewables by 2025 is behind schedule. This energy bottleneck poses a serious constraint on Taiwan’s ability to fully capitalize on its manufacturing strengths in the AI economy.

A Strategic Shift Toward Comprehensive AI Capabilities

Huang’s focus on agentic AI and robotics reflects a larger strategic pivot for Taiwan. Since 2017, the government has invested $517.5 million in the “AI Grand Strategy for a Small Country” project, backed by consecutive national AI action plans. While Taiwan leads globally in semiconductor manufacturing, it has lagged in AI software development, creating an imbalance within its tech ecosystem.

Recent advances in cooling and energy management technologies for AI infrastructure show Taiwan expanding beyond manufacturing into higher-value AI solutions. This approach aims to tackle demographic challenges and labor shortages by integrating AI and robotics, building new competitive advantages on top of existing semiconductor strengths.

Key Takeaways for Executives

• Energy management will be a critical factor in Taiwan’s ability to grow its AI sector sustainably.
• Investments in AI software and robotics are necessary to complement Taiwan’s semiconductor manufacturing dominance.
• Agentic AI offers practical potential to automate complex tasks, easing labor shortages.

For executives evaluating AI strategies, Taiwan’s example underscores the importance of aligning technology innovation with infrastructure capabilities. Exploring AI training and resources can help leaders prepare their organizations for these shifts. Consider browsing Complete AI Training’s latest courses to stay ahead of emerging AI applications relevant to your industry.