Biomedical Industry as Taiwan's Next 'Sacred Mountain'; NDC Encourages AI Applications and Personalized Medicine
Deputy Minister Jan Fang-kuan of the National Development Council (NDC) stated on the 5th that the biomedical market will expand in response to Taiwan's declining birthrate and aging population. The government will focus on three development directions: CDMO, personalized medicine (precision and regenerative medicine), and smart healthcare leveraging the ICT industry's strengths with AI applications. Jan emphasized that the biomedical industry is crucial for national resilience and called for rational public understanding.
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- 📰 Published: June 5, 2026 at 12:09
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(Central News Agency reporter Pan Tzu-yu, Taipei, 5th) President Lai Ching-te recently publicly announced the policy goal of building the biomedical industry into another "sacred mountain protecting the nation" for Taiwan. Deputy Minister Jan Fang-kuan of the National Development Council (NDC), in a program interview, outlined three major future development directions for the biomedical industry, emphasizing that the government strongly encourages the application of AI technology in healthcare, and many biomedical companies are moving in this direction.
Jan was interviewed for the online program "Ask Me Anything" about the government's industrial policy amid demographic shifts; the program aired on the morning of the 5th.
Jan stated that Taiwan cannot reverse its low birthrate and super-aged population structure in the short term. Regarding the low birthrate, the government recently announced the "New Strategy for Taiwan's Population Policy – Family Support Chapter," comprising 18 measures aimed at easing the burden of childcare and encouraging childbirth. Regarding aging, besides encouraging businesses to utilize middle-aged and elderly labor and adjusting approaches to the environment, transportation, healthcare, and long-term care, the government also places great importance on the biomedical industry.
Jan explained that in response to Taiwan's demographic shift, from the perspective of the biomedical industry, the market size will continue to grow. Moreover, the elderly have better financial means and are willing to increase spending, making it a growing market both domestically and internationally.
Asked about the government's development priorities for the biomedical industry, Jan explained that compared to the past, more emphasis has been placed on new drug development in recent years. However, this faces two practical problems: first, the long development timeline for new drugs, where the resources invested may not be proportional to the results; second, successfully launching a new drug requires vast distribution channels and commercialization capabilities, leading many new drug companies to eventually sell their products to large pharmaceutical firms.
Jan further stated that with technological progress and the rise of AI applications, when discussing the biomedical industry in the future, the government will focus not only on new drugs but on three major development directions. First, since the COVID-19 pandemic, the government has prioritized CDMO (Contract Development and Manufacturing Organization) and incorporated it into the Biotechnology and Pharmaceutical Industry Development Regulations.
Second, there is a greater emphasis on personalized medicine. Jan stated that with the accumulation of medical data and the rapid development of AI technology, precision medicine and regenerative medicine will become important development directions. The government has recently passed the dual regenerative medicine laws to promote the development of the regenerative medicine industry and encourages the application of AI technology in the medical field. Many biomedical companies have already begun positioning themselves in this direction.
Third, Taiwan has a deep ICT industry foundation. Many ICT companies have already targeted the biomedical market, investing in smart healthcare, smart hospitals, minimally invasive medicine, and AI application solutions for over a decade. Jan stated that many large companies have not only invested resources but have also achieved preliminary results, and smart medical devices will be an important development direction in the future biomedical field.
Regarding the frequent smears or attacks faced by Taiwan's biomedical industry, Jan stated that it is not just Taiwan; Japan, Europe, and the United States also place great importance on the autonomy of the pharmaceutical supply chain, as does U.S. President Donald Trump. The reason is that the biomedical industry is not just about industrial development; it is also a matter of national resilience. He expressed hope that the public would understand and respond rationally. (Editor: Pan Yi-ching) 1150605
Jan was interviewed for the online program "Ask Me Anything" about the government's industrial policy amid demographic shifts; the program aired on the morning of the 5th.
Jan stated that Taiwan cannot reverse its low birthrate and super-aged population structure in the short term. Regarding the low birthrate, the government recently announced the "New Strategy for Taiwan's Population Policy – Family Support Chapter," comprising 18 measures aimed at easing the burden of childcare and encouraging childbirth. Regarding aging, besides encouraging businesses to utilize middle-aged and elderly labor and adjusting approaches to the environment, transportation, healthcare, and long-term care, the government also places great importance on the biomedical industry.
Jan explained that in response to Taiwan's demographic shift, from the perspective of the biomedical industry, the market size will continue to grow. Moreover, the elderly have better financial means and are willing to increase spending, making it a growing market both domestically and internationally.
Asked about the government's development priorities for the biomedical industry, Jan explained that compared to the past, more emphasis has been placed on new drug development in recent years. However, this faces two practical problems: first, the long development timeline for new drugs, where the resources invested may not be proportional to the results; second, successfully launching a new drug requires vast distribution channels and commercialization capabilities, leading many new drug companies to eventually sell their products to large pharmaceutical firms.
Jan further stated that with technological progress and the rise of AI applications, when discussing the biomedical industry in the future, the government will focus not only on new drugs but on three major development directions. First, since the COVID-19 pandemic, the government has prioritized CDMO (Contract Development and Manufacturing Organization) and incorporated it into the Biotechnology and Pharmaceutical Industry Development Regulations.
Second, there is a greater emphasis on personalized medicine. Jan stated that with the accumulation of medical data and the rapid development of AI technology, precision medicine and regenerative medicine will become important development directions. The government has recently passed the dual regenerative medicine laws to promote the development of the regenerative medicine industry and encourages the application of AI technology in the medical field. Many biomedical companies have already begun positioning themselves in this direction.
Third, Taiwan has a deep ICT industry foundation. Many ICT companies have already targeted the biomedical market, investing in smart healthcare, smart hospitals, minimally invasive medicine, and AI application solutions for over a decade. Jan stated that many large companies have not only invested resources but have also achieved preliminary results, and smart medical devices will be an important development direction in the future biomedical field.
Regarding the frequent smears or attacks faced by Taiwan's biomedical industry, Jan stated that it is not just Taiwan; Japan, Europe, and the United States also place great importance on the autonomy of the pharmaceutical supply chain, as does U.S. President Donald Trump. The reason is that the biomedical industry is not just about industrial development; it is also a matter of national resilience. He expressed hope that the public would understand and respond rationally. (Editor: Pan Yi-ching) 1150605
FAQ
What are the core directions of Taiwan's biomedical industry policy?
The three core directions are CDMO, personalized medicine (precision and regenerative medicine), and smart healthcare leveraging ICT.
Why does the Taiwanese government place such importance on the biomedical industry?
Besides market growth due to an aging population, the autonomy of the pharmaceutical supply chain is considered a matter of national resilience.
How might this policy impact Japanese companies?
Increased collaboration between Taiwan's ICT and biomedical firms could create more opportunities for Japanese companies in terms of partnerships and investment.