Animation in Taiwan has been profoundly influenced by the production of labor intensity for American and Japanese in the early days of its development. This phenomenon of the labor intensity reached peak in the 1980s. Information Bureau of Taiwan began to establish a system of supportive funding for its animation industry in the 1990s. During this period, the animation industry in Taiwan gave special emphasis to the theme of the local culture and to the creative works of the animation. By the 2010s, the elements of Chinese culture were introduced in the animation production in Taiwan. Through cross-national cooperation in production with other advanced countries, the Taiwan-made animation was successfully expended to the international market. However, the animation industry in Taiwan is facing the following problematical challenges: Firstly, the Taiwan government gives special attention to the financial support of animation industry rather than training university students to become professional experts in animation production. Secondly, there is no professional higher institution established to train specialized professional animation film-makers. Thirdly, Due to the lack of the cultural inspiration and the original mind, the form of its creative animated production is primarily imitated from other advanced countries. And fourthly, despite the fact that there is a cooperation and exchange programs between Taiwan and other foreign animation industries.