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Key Industries


  • 日期:2021-05-01

Source: Industrial Development Bureau, MOEA
Last Updated on: 2019/09/30


I. Policy Initiatives

1.Digital Nation & Innovative Economic Development Program (DIGI+)

Towards the end of 2016, Taiwan launched the Digital Nation & Innovative Economic Development Program (DIGI+) to promote the use of digital life services, raising its penetration rate from 25.8% to 80% and realizing the goal of making Taiwan a “smart nation”.

2.All-round Promotion in Developing the Communications Industry

The Communication Industry Development Project Office, set up under the Industrial Development Bureau of the Ministry of Economic Affairs, is the government’s think tank for the all-round promotion of the communications industry, guiding companies to invest in integrated solutions. The office helps link innovative startups with international platform resources and facilitate the development of applied services innovation capabilities and human resources,  for enhancing Taiwan's network communications industry.


II. An Overview of the Development of the Communications Industry

1. Production Value

Playing an important role in the control of the manufacturing systems of a significant number of communications hardware products, Taiwan has become one of the key players in the global communications industry. The production value of Taiwan's communications industry (excluding mobile phone OEM services/EMS) reached NT$1.4 trillion in 2018. Out of various communications products, the production value of smartphones and communication services are comparatively higher than that of other products, accounting for 29.2% and 28.2% respectively of the production value of the entire communications industry. Other major products in the industry include WLAN, Cable CPE, Ethernet Switch, and IP STB. Production value of these products has steadily increased, resulting in an annual product growth rate of between 2.2% and 4.5% in 2018 (see Figure 1). 

Figure 1  Production value of Taiwan's communications industry in 2015-2019

2. Industrial Clusters

(1)Northern Taiwan

The communications industry cluster is generally concentrated in northern Taiwan, particularly obvious for the mobile phone sector. Almost all mobile phone chip manufacturers, branding companies, and telecommunication operators are headquartered in northern Taiwan. The head offices of many major companies, such as Accton, Sercomm, Wistron NeWeb, and Chunghwa Telecom, are concentrated in the Neihu Technology Park, Hsinchu Science Park, and Taoyuan area.

(2)Central and Southern Taiwan

Communications companies clustered in central Taiwan are mainly automobile communications electronics and consumer electronics equipment manufacturers. Despite the fact that both Kaohsiung Software Technological Park and Southern Taiwan Science Park are located in Southern Taiwan, the number of communications companies operated here is still unable to match with that as found in northern Taiwan.

III. Investment Opportunities

1. Entering the Smart Machineries industrial cluster in Taiwan

Possessing manufacturing and global logistics capabilities, Taiwan’s communications companies have acquired an advantage in the production of network chips, parts and components, touch panel, and system integration. There is a very complete industrial value chain, comprising manufacturers in the upper and lower streams. Several major IC manufacturers, such as Broadcom and Qualcomm, have already established their overseas offices or R&D and design centers in Taiwan, creating new business opportunities.

2. Utilizing Taiwan's advantages to develop 5G business models

Taiwan has a leading advantage in the development of key ICs, modules, and consumer end products. Foreign companies can leverage Taiwan's advantages and participate in developing 5G business models jointly with Taiwanese companies, particularly in developing technological integration of AI, IoT, and AR/VR technologies and exploring business opportunities in vertical application areas.

IV. Investment Incentives

1. Tax and Tariff Incentives

(1) The rate of corporate income tax in Taiwan is 20%.

(2) Up to 15% of a company's R&D expenditure for a year can be deducted from its corporate income tax payable for that particular year.

(3) Imported machineries that local manufacturers are unable to make are eligible for import tax exemption.

(4) Royalty payments to be given to foreign companies for the import of new production technologies or new products using patents, copyrights, or other special rights owned by foreign companies are, with the approval of the Industrial Development Bureau of the MOEA, exempted from the corporate income tax payment.

2. R&D Subsidies

(1)Global Innovation Partnership Initiatives: Subsidies of up to 50% of the total expenses are available for application by foreign enterprises which come undertaking innovative R&D activities in Taiwan. The major objective of these initiatives is to encourage foreign companies, with capabilities complementary to that of Taiwanese manufacturers, to engage locally in innovative research activities for developing related industry eco-systems in Taiwan and facilitating international innovative R&D collaboration. It is expected that these initiatives will bring about value creation activities such as innovative start-ups and novel production, creating win-win outcomes.
(2)Integrated R&D Program: Subsidies are available for application, from 40% to up to 50% of the total costs, for projects related to the R&D of key and generic technologies, and the integration of the upper-middle-lower streams and cross-sector technologies.
(3)Industry Upgrade & Innovation Platform Assistance Program: Subsidies are available for application by companies, having their own R&D teams in Taiwan, from 40% to up to 50% of the expenses of theme-based R&D projects that are in support of government programs. Up to 40% of subsidies are available for application by companies on their self-generated R&D projects.

V. Major Foreign Investors in Taiwan

1. Collaboration in Emerging Fields of Application

(1) Collaborated with the Taoyuan City Government, HPE implemented the new HPE Edgeline IoT smart streetlight solution, using an IoT real-time streetlight monitoring platform to increase energy efficiency and reduce energy consumption.
(2) Vodafone, European multinational telecom operator, joined hands with Edgecore Networks, Accton's subsidiary; Alpha Networks; and Delta Networks to build the disaggregated cell site gateway (DCSG).

2. Collaboration in R&D

(1) Broadcom, a renowned IC manufacturer, has established an IPO office, a R&D and design center, and its head office in Taiwan, creating collaboration opportunities for the exchange of technologies and for engaging Taiwanese companies as IC OEM.
(2) Nokia has built a technology experiment site and verification platform in Taiwan for emerging communications technology applications. The company has also collaborated with Taiwanese companies in conducting the trials of vertical application solutions (such as Internet of Vehicles, smart meters, and industrial network).