Taiwan Forms AI Automotive Alliance to Drive Next-Gen Smart Mobility

Published: 03 Oct 2025

Author: Precedence Research

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By forming the AI Automotive Industry Alliance, Taiwan has made a significant contribution to the future development of intelligent transportation. On October 1, 2025, the initiative was formally introduced at Taipei's Taiwan Automotive International Forum and Exhibition (TAIFE). The alliance, which was jointly established by the Taiwan Electrical and Electronic Manufacturers Association (TEEMA) and the Taiwan Automobility Research Consortium (TARC), brings together top technology companies, government organizations, and academic institutions. Its goal is to fortify Taiwan's position in the quickly expanding smart mobility market and spur innovation.

Deputy Director-General Chung-Pin Chou of the Ministry of Economic Affairs (MOEA) emphasized at the launch how AI is changing industries globally, with automotive technology emerging as one of the most revolutionary sectors. He referenced international projections that indicate the market for AI-powered automotive electronics will expand at a remarkable rate of 30 percent per year, reaching $5 billion by 2025 and surpassing $50 billion by 2035. Due to its internationally renowned expertise in servers, semiconductors, and advanced communications, Taiwan is well-positioned to capture a significant share of this expanding market.

Three key areas will be the focus of the newly established alliance: autonomous driving systems, smart cockpits, and vehicle-to-everything (V2X) connectivity. The alliance aims to establish a collaborative ecosystem that accelerates the commercialization of these technologies by combining resources and expertise from diverse industries. Through the provision of integrated and future-ready automotive solutions, this partnership model will not only foster domestic innovation but also enhance Taiwan's international competitiveness.

Looking forward, the Artificial Intelligence Automotive Industry Alliance is expected to lay the foundation for trillion-scale industries by expanding international partnerships and scaling Taiwan’s technology exports. It reflects the government’s broader vision of turning Taiwan into a powerhouse for smart mobility and next-generation transportation systems. By combining strong research capabilities with industry-driven applications, Taiwan is positioning itself at the heart of the global race toward AI-powered automotive solutions.