In order to promote the integrated application of 5G, AIoT, and other technologies, the National Development Council (NDC) has promoted the "NDC Subsidy for Promoting Innovative Applications by Introducing 5G and AI into Smart City IoT Projects" since May 2021, combining local sites to conduct application services and business model concept verification in order to develop innovative 5G applications for the Smart City 2.0. Through this subsidy, the NDC also aims to encourage companies to invest in smart health, smart manufacturing, smart exhibition, among other related fields, thereby driving domestic demand for 5G vertical application systems, enhancing the autonomous capabilities of Taiwan's 5G industry technologies, and accelerating the development of domestic manufacturing capabilities.

This plan has been developed based on the Smart City 1.0 to promote the integrated applications of 5G, AIoT, and other technologies, combining local sites to conduct application services and business model concept verification, and developing 5G innovative applications for the Smart City 2.0. By doing this, the plan seeks to enhance the maturity and operational sustainability of 5G smart city solutions, thereby forming 5G innovative application service models that can be replicated and promoted as successful cases for facilitating 5G innovative applications in the future. In addition, with a focus on accelerating the integration of 5G vertical application systems and improving the autonomous capabilities of Taiwan's 5G industry technologies, the plan supports the development of overall solutions that conform to the 5G open-network architecture, thereby assisting domestic companies in exporting to overseas markets after trials in domestic sites, capturing the huge market opportunities arising from 5G open networks.

This plan leverages the advantages of Taiwan’s information and communications industry, focuses on domestic social and industrial needs, connects domestic and foreign enterprises, start-ups and related industries, utilizes 5G and AIoT, draws on international application benchmarks, focuses on the application needs of the international market, encourages priority introduction in large-scale sites, promotes the implementation of people-oriented application services, and drives the upgrading and transformation of various vertical application industries.

Since the launch of this plan in May 2021, a total of 23 projects have been approved, 9 of which have been closed in 2022. It is expected to drive an investment of approximately NT$1 billion and revenue of over NT$1.2 billion.