TAIPEI (Taiwan News) — The Ministry of Economic Affairs said that foreign technology companies invested a record NT$24.4 billion (US$805.2 million) in R&D in Taiwan last year.
The National Science and Technology Council held a meeting on Wednesday with MOEA official Chiu Chiu-hui (邱求慧) in attendance. Chiu said 40 foreign technology companies have set up R&D centers in Taiwan, per CNA.
Chiu said that foreign investment in Taiwan creates a "Silicon Shield," deterring China’s aggression through the nation's crucial role in the global chip supply chain. He said that companies, including Micron, Nvidia, AMD, Infineon, and ASML have invested in Taiwan, bringing key technologies in AI, memory chips, automotive semiconductors, and other critical sectors.
Since 2015, the ministry has been promoting programs to attract foreign technology companies to establish R&D centers in Taiwan, Chiu said. He noted the initiative has boosted Taiwan's talent pool, salaries, job market, and technological research.
The programs have facilitated research and development partnerships between more than 1,000 Taiwanese companies and foreign technology firms, aiding local businesses in adopting AI. The foreign companies also collaborate with local universities, training more than 4,000 technology professionals a year.
Chiu said the programs have attracted more than NT$520 billion in foreign investment since its launch. Despite geopolitical risks, Taiwan remains an important business partner for many foreign companies.
The government has promoted five key sectors, including semiconductors, AI, defense, cybersecurity, and communications, Chiu said. Foreign investment in Taiwan boosts these sectors and aligns with the country's policy priorities.
Chiu added that foreign technology companies seeking to establish R&D centers in Taiwan must recruit at least 50% foreign talent. They can apply for subsidies from the ministry, with funding capped at 50% of the total project cost submitted in their application.
Last year, AMD applied to establish an R&D center in Taiwan with a total project cost of NT$8.64 billion and received a government subsidy of NT$3.31 billion. In 2021, Nvidia invested approximately NT$24.3 billion in Taiwan, securing a subsidy of NT$6.7 billion.
