ISTANBUL 

Taiwanese leader William Lai Ching-te Friday said Taipei will turn the southern parts of the island into a hub of artificial intelligence (AI).

Speaking at "Southern Taiwan Silicon Valley Program" in southern Tainan city, Lai called for enhancing research capabilities to applying AI in health care, infrastructure and academia, according to a statement from his office.

“We cannot just sell equipment. We must be capable of selling solutions and systems,” he said.

Acknowledging the pioneers of Taiwan’s semiconductor industry, Lai said the island nation “must leverage its strength in the production of advanced semiconductors to build links with other democratic countries and to make the country's economy more resilient.”

Taiwan is responsible for 60% of global production of chips measuring 7 nanometers or smaller. The island nation remains at the center of a geopolitical rivalry between the US and China.

The global chip sector is projected to grow further next year, driven by advancements in artificial intelligence (AI) technologies and 5G.