A Taichung city councilor is pushing the local government to support AI-made films, arguing Taiwan could turn cheap AI production into a signature industry — potentially good news for young creators, bad for traditional studios.

• AI video is spreading fast online, and China's Hengdian studio complex — its "Hollywood" — is reportedly running at only 30% capacity as a result.
• KMT councilor Lee Chung says a low-budget film that once cost NT$60 million can now be made with AI for under NT$1 million.
• He wants the city to fund AI scripts and steer young people into the field, pointing to Taiwan's existing pool of computer animation talent.
• The city's information bureau says the Wufeng film base in central Taiwan is nearly 90% booked and business has improved since 2025.
• Officials are open to subsidies but say AI production still has technical hurdles, so any support would likely be split into separate tracks.

Outlook: Taichung is likely to keep studying AI film subsidies rather than commit money soon, while cheap AI production keeps eating into demand for traditional soundstages.