TAIPEI (Taiwan News) — Taiwan is contemplating establishing support hubs that will motivate domestic chipmakers to invest overseas, Nikkei Asia reported on Wednesday (Oct. 23). 

The service companies would serve as support centers for Taiwanese companies to assist them in acquiring land, electricity, water, and workers. In addition, it will offer recommendations to help them qualify for tax breaks, according to Nikkei Asia. 

Last month, Economics Minister Kuo Jyh-huei (郭智輝) talked about setting up a support company at a proposed industrial park in Japan where Taiwan Semiconductor Manufacturing Co. (TSMC) is building its first Japanese fabs, per the report.

Taiwanese firms expanding abroad need an environment where they can focus on their business, Paul Liu (劉鏡清), National Development Council (NDC) head told Nikkei Asia. “We want to create opportunities for more Taiwanese companies to enter” Japan, Liu said. 

He noted that Kumamoto prefecture, where TSMC’s first Japanese plant is located, is one possible spot for a support hub. Liu said the economics ministry could finalize the plan as early as this year.

Talking to the press in July, Kuo said prospective locations for other support hubs could include Japan, the US, and the Czech Republic, Nikkei Asia noted. The idea is part of a plan by Taiwan to use its science parks as a model for development overseas. 

Amid increasing geopolitical tensions and friction with China, Taiwanese companies have been diversifying their overseas investments. According to Nikkei Asia, China’s portion of Taiwan’s foreign investment reached a high in 2010 at more than 80% but has dropped to single digits during the first nine months of the year.