Taiwan ramps up international recruiting efforts with expanded work rights and scholarships
- The Taiwanese government has greatly expanded incentives and opportunities for international students to work and gain permanent residency in Taiwan
- A top goal is to train and retain experts in semiconductor manufacturing – a sector that accounts for over 20% of Taiwan’s GDP
- Taiwan leads the world in this area but faces looming skills shortages and growing competition from other countries
- Major new investments in international student scholarships have also been announced
The Taiwanese government is intensifying its efforts to attract and retain international students. In 2025, it introduced several strategies in support of this aim, and it has just announced additional policies that make it (1) easier for international graduates to work and remain in Taiwan and (2) simpler for Taiwanese employers to hire foreign talent.
The government-funded Talent Taiwan website says, “The message from the 2026 amendments is clear: Taiwan is no longer just looking for ‘workers’—it is looking for residents.”
Generous new work rights
Two years of open work rights for most international students: As long as they graduate with at least an associate’s degree, international graduates of Taiwanese universities can now work for two years in Taiwan without needing an additional work permit. The first allowance is one year, which can then be extended by a further year. During this time, graduates can intern, freelance, work part time, or work full time to “discover their ideal career path” in Taiwan.
Before this amendment, only graduates who met salary requirements and worked in specific occupations were eligible for post-study work rights – and only then if they were sponsored by an employer.
Two years of open work rights for top students graduating with degrees from other countries: Students who have graduated in the past five years from one of the world’s top 200 universities (as ranked by Times Higher Education, QS, or US World News) can now apply for a two-year open work permit in Taiwan.
Elimination of the two-year work experience requirement for employers hiring eligible students from abroad: Taiwanese employers can now hire graduates of the world’s top 1,500 universities (as ranked by Times Higher Education, QS, or US World News) without those graduates needing two years of work experience in Taiwan.
Shortened time to permanent residency: Prior to 2026, all international graduates of Taiwanese universities needed to work for five years in Taiwan before they could apply for permanent residency. But now, graduates of undergraduate programmes need only four years; graduates of master’s programmes need only three; and graduates of PhD programmes need only two before they can apply for permanent residency.
Pension upon hiring: Foreign workers no longer need permanent residency status to be enrolled in a pension plan in which Taiwanese employers automatically contribute 6% of salaries to “The New Labor Pension System.” This allows foreign workers the same pension rights as domestic workers, and the policy is aimed at improving the appeal of a long-term career in Taiwan.
The government-funded Talent Taiwan website says: “By aligning retirement benefits, shortening the path to permanent residency, and giving students the freedom to explore the market, Taiwan is positioning itself as the most talent-friendly destination in the region.”
Why the push for foreign talent?
Taiwan faces a serious demographic challenge in the form of a low fertility rate and an ageing population. In 2025, it became a “super-aged” society; one in five Taiwanese (20.06%) is now aged 65 or older, compared to a world average of 10.4%. Other, even older, societies include Japan (30% are 65 or older); Italy and Portugal (25% each); Greece (24%); Germany and Hong Kong (24%); and France (23%). Not coincidentally, all these countries are aiming to attract more foreign students and workers.
Taiwan's demographics are exacerbating skills shortages. Taiwan’s Business Topics publication notes:
“The National Development Council projects about 350,000 job vacancies by 2028 … including for sectors such as semiconductors, advanced manufacturing and healthcare.”
The need for semiconductor experts
Significant skills shortages in the semiconductor sector would pose a massive risk for Taiwan’s economy. Semiconductor chips are widely considered to be the “brain” of all modern electronics, from cars to medical devices, and from computers to smartphones. Their importance is only growing: the technology think tank IIoT World states: “Semiconductor manufacturing is arguably the most lucrative industry for future economic competitiveness.”
Taiwan is the world’s top manufacturer of semiconductors, representing about 60% of global production – and 90% when it comes to the most advanced microchips that power AI innovation, high-performance computing (HPC), and sustainable technologies.
Semiconductor manufacturing accounts for 20.7% of Taiwan’s GDP, with the vast majority of that contributed by the Taiwan Semiconductor Manufacturing Company (TSMC). That foundry, on its own, held 50% of the global market in 2025 and supplies companies such as Apple, NVIDIA, and AMD.
In terms of global share, South Korea, China, the US, and Japan are the runners-up to Taiwan, and they are competing fiercely for more of the market.
Scholarships for semiconductor-focused students
Suffice to say, Taiwan needs more semiconductor-focused STEM students, and it needs them fast. Scholarships are one of the instruments being used to boost foreign enrolments in programmes such as electrical engineering, materials science, and physics, as well as niche areas including nanotechnology, quantum physics, and microelectronics.
This year, the government will add roughly NT$1 million (US$31,668) to scholarships for top foreign students pursuing studies in semiconductors and AI.
On 26 January 2026, MOE Secretary-General Lin Po-chiao announced the new investment and said:
“While the US, Japan and the EU have ramped up investment in semiconductors and AI, proactively recruiting advanced high-tech talent globally, Taiwan must promptly adjust its talent policies to maintain a strategic advantage in the next wave of technological competition.”
More investment is also slated for the major industry-academic scholarship International Industrial Talents Education Special Program (INTENSE Program), which was launched in 2024.
INTENSE obtains its substantial funding for students from the government (responsible for bringing in and supporting students in their academics) and industry (for internships and pathways to employment).
The programme is open to students from outside Taiwan as well as international students currently studying in Taiwanese universities. Notably, INTENSE scholarship recipients are required to remain in Taiwan to work after graduation for the same length of time as it took to complete their programme.
The new work and permanent residency rights in place for 2026 will undoubtably make it easier for Taiwan to retain scholarship students for long-term careers in Taiwan’s technology sectors.
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