Taiwan dangles US$335 million to woo foreign chip makers

The seven-year plan aims to subsidise the research and development costs incurred by global chip companies that build centres on the island

The programme would also apply to local chip firms that convince foreign suppliers to establish such operations in Taiwan

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The sunset with downtown Taipei on the foreground, as seen from the observatory deck of the Taipei 101 skyscraper in Taiwan in August of last year. The government will unveil new incentives to attract fresh capital and talent in the island’s semiconductor industry. Photo: EPA-EFE

Published: 8:28pm, 3 Jun 2020Updated: 8:28pm, 3 Jun 2020

Taiwan’s cabinet plans to allocate more than NT$10 billion (US$335 million) to entice foreign chip makers to set up research and development facilities locally, people familiar with the plan said, escalating global competition for much-sought-after semiconductor technology.

The seven-year blueprint to be unveiled on Thursday aims to subsidise as much as half of all the research and development costs incurred by global chip companies that build centres on the island, said the people who asked not to be identified because the plan is not public yet.

The programme would also apply to local chip firms that convince foreign suppliers to establish such operations in Taiwan. The government is hoping to secure new investments from at least one company each year, according to the people, who added that certain requirements such as on the amount invested and the number of jobs created would apply.

The new policy emerges at a time Taiwan has been caught in the middle of a clash between the US and China over the development of chip technology that powers everything from smartphones to 5G base stations.

Last month, the Trump administration barred any chip maker using American equipment from supplying China’s Huawei Technologies without approval, dealing a major blow to Taiwan Semiconductor Manufacturing Co and the island’s other chip makers.

Taiwan dangles US$335 million to woo foreign chip makers

The seven-year plan aims to subsidise the research and development costs incurred by global chip companies that build centres on the island The programme would also apply to local chip firms that convince foreign suppliers to establish such operations in Taiwan

The seven-year plan aims to subsidise the research and development costs incurred by global chip companies that build centres on the island

The programme would also apply to local chip firms that convince foreign suppliers to establish such operations in Taiwan