Over the past five years, Taiwan has drawn global attention for its contributions to high-tech industries and its ability to navigate global supply chain disruptions. Yet, beyond its economic and technology profile, Taiwan faces a growing domestic challenge: a rapidly ageing population that is reshaping the country’s labor market, healthcare system, and long-term policy planning. This article explores Taiwan’s demographic transition and the government’s initiatives to address it—particularly through the adoption of artificial intelligence (AI) and automation. It also underscores the importance of interdisciplinary collaboration, including the social sciences, to create more inclusive and effective responses to population ageing.
The Next Major Transition: Demographics
With a population of 23 million and an area slightly larger than Belgium, Taiwan has undergone significant economic and societal transformation since the 1990s. It has evolved from labor-intensive manufacturing to high-tech and capital-intensive sectors. Despite global financial crises and the COVID-19 pandemic, its economy has remained relatively stable and resilient.
This resilience, however, is now being tested by a rapid demographic shift. Taiwan has had one of the world’s lowest birth rates since the 1990s. Despite various policy measures to encourage childbirth, the National Development Council (NDC) projects that Taiwan will continue to have the world’s lowest fertility rate by 2035.
Taiwan officially became an “aged society” in 2018, with more than 14% of its population aged 65 or older. It is reaching “super-aged” status in 2025, when one in five citizens will be seniors. This shift is occurring faster than in many other ageing societies,only seven years, compared to 11 in Japan, 19 in Italy, or 36 in Germany. By 2026–2027, the dependency ratio (the share of children and older adults relative to the working-age population) is projected to exceed 50%.
Immigration Policies and Workforce Challenges
Like many societies facing demographic ageing, Taiwan has explored immigration as a potential strategy to support its labor force. However, various structural barriers—such as language, credential recognition, and limited career mobility—continue to challenge the integration of foreign professionals. Pathways to permanent residency for blue-collar migrant workers remain limited. Furthermore, Taiwan faces stiff competition from nearby Asian advanced economies like Japan, South Korea, and Singapore, nations with similar demographic challenges.
Taiwan also faces unique challenges of labor force participation among older adults. In 2021, only 49.2% of Taiwanese aged 55–64 were active in the labor market, significantly lower than 78% in Japan and 73.3% in Germany. Among those aged 65 and older, only 9.2% were employed—well below South Korea (36.3%) and Japan (25.6%). According to the Ministry of Labor, 98% of unemployed individuals over 45 reported no intention to return to work, citing reasons such as age-related concerns, caregiving responsibilities, or no financial need.
Addressing these challenges requires not only technological interventions but also supportive policies informed by research into retirement behavior, workforce re-entry, and social inclusion.
AI and Technology: Taiwan’s Strategy for an Ageing Society
To alleviate labor shortages and create more age-friendly work environments, Taiwan has begun implementing policies that leverage its strengths in digital technology. Taiwan’s strategic advantage in this domain lies in its world-leading semiconductor sector, cutting-edge chip design capabilities, and its highly embedded role in the global digital supply chain. These strengths have allowed Taiwan to not only supply critical hardware for AI systems, but also shape global technology trends from a position of influence. This technological depth provides Taiwan with a strong foundation for applying AI to social challenges such as ageing.
In December 2020, the Middle-aged and Senior-aged Employment Promotion Act was passed to encourage reemployment of older adults. In March 2023, the National Science and Technology Council introduced a silver economy industry policy, with a focus on AI-powered tools to support older workers.
National initiatives such as the AI Taiwan Action Plan (2018–2021) and the draft AI Basic Act (2024) outline the government’s commitment to promoting innovative uses of artificial intelligence. These include applications in eldercare, such as assistive robotics, telemedicine, and smart home technologies designed to help seniors maintain independence and quality of life.
Beyond Technology
While technology is an essential part of Taiwan’s strategy to address ageing, it is not a standalone solution. The integration of AI with broader social policies, such as the expansion of healthcare and long-term care services, is necessary to ensure that technological solutions align with the real needs of an ageing population. A comprehensive response requires the integration of technological innovation with broader policy solutions that take into account social, cultural, and community-based needs.
One prominent example is the Long-Term Care 3.0 Plan, launched in March 2025, with services expected to begin in 2026. This plan builds on previous iterations of Taiwan's long-term care policy and shifts the focus toward ageing in place—an approach that emphasises community-based care and support. The LTC 3.0 Plan introduces "10-minute care circles," ensuring that older adults receive timely and comprehensive support close to their homes. It also improves the integration between healthcare and long-term care services, creating a more seamless experience for seniors in need of ongoing assistance. This is complemented by expanded support for individuals after hospital discharge, reflecting a commitment to preventive care and social inclusion.
Opportunities for International Collaborations
Taiwan’s multifaceted approach to addressing population ageing presents significant opportunities for international collaboration, particularly in leveraging the combined potential of technology and policy innovation.
1. Collaborative Research and R&D for Ageing Solutions
Taiwan's advanced capabilities in hardware, software, and AI make it an ideal partner for international institutions working on ageing-related technologies. Collaborative interdisciplinary research—including human-centered design and behavioral science—can drive innovations that are both scalable and widely adopted. For example, the Industrial Technology Research Institute (ITRI) has developed "DeeGoo," a digital solution designed to assess and stimulate cognitive functions in older adults. DeeGoo utilizes AI to provide personalized cognitive exercises, aiming to delay cognitive decline and improve overall cognitive health among the ageing population. This type of technological innovation aligns with Taiwan's broader strategy to use its strengths in digital technologies to support ageing societies.
2. Healthcare, Ethical AI, and Cultural Adaptation
The integration of AI into healthcare requires not only technological expertise but also cross-border collaboration on ethics and policy. Taiwan can play a key role in strengthening global conversations around digital inclusion, elder rights, and medical ethics. Knowledge exchange programs between Taiwan and international institutions help address workforce challenges and foster inclusive innovation, ensuring AI solutions in healthcare are responsible and equitable across different cultures and societies. In October 2024, Taiwan's Ministry of Health and Welfare established three AI centers at leading medical institutions. These centers focus on integrating, certifying, and securing funding for medical AI within healthcare facilities, emphasizing responsible AI deployment and ethical considerations in healthcare. This initiative aims to creating culturally sensitive, tech-enabled solutions to address the needs of ageing populations.
3. Startups and Innovation Ecosystems for Age-Tech Solutions
Startups play a critical role in responding to the challenges of ageing societies. Their flexibility, openness to interdisciplinary ideas, and emphasis on user-centered design make them well positioned to explore novel approaches in areas such as eldercare, health AI, social inclusion, and age-friendly technologies. By attracting young talent and encouraging rapid prototyping, startups can complement institutional strategies and bring fresh perspectives to persistent social issues.
In Taiwan, this potential is being actively cultivated through initiatives such as Taiwan Accelerator Plus (TAcc+), which supports both domestic and international startups working on technology-driven solutions. TAcc+ connects these startups with research institutions, pilot sites, and industry mentors, while also extending Taiwan’s innovation networks to global ecosystems. These efforts create new pathways for collaborative experimentation and reinforce Taiwan’s commitment to inclusive, tech-enabled responses to demographic ageing.
A Resilient Society: Navigating Taiwan’s Ageing Challenge
Over the past few decades, Taiwan has successfully navigated significant economic and structural changes. Today, it faces a critical challenge: a rapidly ageing population, undergoing one of the fastest demographic transitions globally. In response, Taiwan is leveraging its technological expertise and infrastructure to develop a framework that addresses both labor market constraints and the quality-of-life concerns of older adults.
However, for these efforts to be truly successful, it is essential to integrate technological innovation with insights from the social sciences. A holistic, interdisciplinary approach will be crucial in crafting solutions that are not only efficient and scalable but also inclusive, addressing the diverse needs of ageing communities.
As Taiwan continues to adapt to this demographic shift, its experience can offer valuable lessons—not solely through technological leadership, but by exemplifying a model that balances cutting-edge innovation with human-centered policy design.
About the Author:
Luc Yao is a Visiting Fellow at the Oxford Institute of Population Ageing. Luc is based in Frankfurt am Main, Germany and is active in the electronics industry, related start-ups, and the Open Innovation networks. His research at the Institute focuses on the adjacent domains of population ageing, innovations and strategic investments.
Opinions of the blogger is their own and not endorsed by the Institute
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