Key Industries

循環經濟

  • 日期:2018-02-01
循環經濟

Source: Industrial Development Bureau, MOEA
Last Updated on: 2017/12/31

I. Policy Focus

1. Circular Economy 
With the advantage of Taiwans comprehensive industrial clusters, the waste management system will be reformed and application technology for the circular economy will be developed so as to reduce the negative impact on the environment caused in the process of utilizing resources, as well as to improve the efficiency of resource and energy use. This can help achieve the goals of balancing the economy, stabilizing development, and minimizing the burden on the environment.

2. Government-led development of a circular economy
In Taiwan, the government has established a resource recycling system with the enactment of the Waste Disposal Act and the Resource Recycling Act, thereby authorizing the competent authorities for the different industries to draft related rules and regulations governing industrial waste and resource recycling.

3. "Program for Application to Set Up in New Materials Cycling Industrial Parks"
The government has a plan to establish a new materials cycling industrial park in Kaohsiung City as the site for the development of new materials to promote research and development of high-value-added new green materials.

4. "Nationwide Dedicated Sites for Circular Economy Pilot Projects"
For the effective launch of the circular economy, the government has plans to establish a number of test sites for circular economy pilot projects with the aim of eventual nationwide dissemination cross-industry application.

 

 

II. Investment Environment

1. Comprehensive industrial clustering
With a complete ecology of industrial chains and clusters, Taiwan is an ideal place for energy and resource integration technologies and waste recycling.

2. Promotion of energy and resource integration in industrial parks
Taiwan spares no effort in promoting resource integration at industrial parks. especially the Kaohsiung Linhai Industrial Park which is focusing on the integration of energy and resources in the metal manufacturing, chemical and shipbuilding industries. The annual linkage volume has reached 2,000,000 metric tons, with fuel savings of 122,000 kiloliters, and carbon emissions reductions of  378,000 metric tons.

3. Booming development of key industries such as semiconductors and optoelectronics
Taiwan is a vital global base for the research, development and manufacturing of optoelectronics and semiconductors. Some of the wastes generated from the production processes of these industries can be recycled and reused in the original processes and some can be regenerated as alternative materials for cement, steel, and chemical production.

4. Sound intellectual property protection
Taiwans intellectual property framework is in line with international standards and has designated prosecutors and courts for handling intellectual property-related cases to  safeguard intellectual property rights.

 

 

III. Investment Opportunities

1. Developing business opportunities in the new materials market
The government is promoting green production processes by introducing smart production to create environmentally friendly, safe, and high-added-value products, and to develop high-value new materials and environmentally friendly low-carbon new materials. International enterprises are welcome to invest in Taiwan for joint ventures, technology transfer, or joint development for advancement into the new materials market in the Asia-Pacific region.

2. Outstanding site for enterprise development
In accordance with the “Program for Application to Set Up in Nationwide Dedicated Sites for Circular Economy Pilot Projects”, the government will set up a “Circular Economy Industrial Park” as a long-term task aimed at providing international enterprises with an all-new site for the development of high-value green materials.

3. Business opportunities in the purification of wastes from high-tech production processes
Taiwan is a vital global base for the export of high-tech parts and components and generates large quantities of chemicals and other wastes from high-tech production processes every year. These chemicals and wastes can be purified or refined for recycling, presenting ideal opportunities for international enterprises with related technological know-how to invest in Taiwan.

 

 

IV. Investment Incentives

1. Tax and Tariff Incentives

(1) Business income tax rate in Taiwan is 17%.

(2) Up to 15% of R&D expenses may be credited against the profit-seeking enterprise income tax payable by the company in the current year.

(3) Imported machinery that is not yet manufactured domestically may enjoy tariff-free treatment.

(4) Royalty payments to foreign companies for imported new production technologies or products that use patents, copyrights, or other special rights owned by foreign companies are, with the approval of the Ministry of Economic Affairs, exempt from the business income tax.

(5) For operators stationed in Export Processing Zones, Science Parks and Free Trade Zones, imported raw materials, fuel, materials, semi-processed goods, and machinery may be exempt from import duty, commodity tax, and sales tax. The business tax rate in such areas is zero on goods and services shipped abroad.

2. R&D Subsidies

(1) Global Innovation and R&D Partnership Plan: Subsidies are available for up to 50% of total spending by foreign enterprises on the establishment of R&D centers in Taiwan.

(2) Advanced Technology Research Plan: Subsidies are available for 40% to 50% of total development funding for new technologies that are not yet mature in Taiwan and that will, in the future, generate strategic products, services, or industries.

(3) Integrated R&D Plan: Subsidies are available for 40% to 50% of total project cost for the integration of key and cross-sector technologies.

(4) Industrial Upgrading and Innovation Program: For companies having R&D teams in Taiwan, subsidies are available for 40%-50% of project funding for projects that conform to government programs and up to 40% of funding for projects generated by the applicants themselves.

 

 

V. Major Foreign Investors in Taiwan

The Japanese firms JX Nippon Mining & Metals and Tanaka Precious Metals have invested in the recycling of gold, silver, copper, iron and other metals, while Nippon Refine and the World Resources Company of the U.S. have invested in the recycling of copper, nickel and zinc. Giant Bicycles operates the public bike rental system Youbike, providing environmentally friendly transportation services. The Singtex Industrial Co. produces functional fabrics made from coffee-ground fibers. The Taiwan Semiconductor Manufacturing Company (TSMC) captures and reuses 95% of its waste products. Far Eastern New Century uses recycled polyester bottles to produce high-quality sports apparel.

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