2019-10-24
InvesTaiwan convened its 39th joint review meeting today (24th) and approved investments of over NTD6.5 billion from Inventec and Tan Kong Precision Tech Co. Ltd., the leading manufacturer of precision balls, to accelerate the increase in their production capacities. So far, the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” has attracted 149 companies to return to invest a cumulative amount of NT$622.3 billion in Taiwan, surpassing the NT$620 billion mark. The investments are expected to create 54,889 employment opportunities, and there are still 20-30 Taiwanese businesses waiting for their investment proposals to be reviewed.
Over the years, the ICT industry has relied on the trade model of receiving purchase orders in Taiwan, producing in China, and exports worldwide, establishing a massive OEM system and a supply chain across the Taiwan Strait. Following the severe challenges brought by the US-China trade war, major OEMs are relocating their production bases in preparation. Inventec has maintained its leadership in terms of the export quantity of server shipments worldwide, and is the top supplier of the top three server brands (Dell, HP, and Lenovo). It is also one of the top five OEMs for laptops. Its main production facilities are in China and is one of China’s largest exporters. With consideration to the severe impact from the US-China trade war on laptops and server related products exported to the US, as well as the uncertainty of the future, the Board of Directors decided to invest NT$4.8 billion to expand the company’s Guishan and Daxi facilities, adjusting production capacity in response to the impact on servers manufactured in Shanghai and laptops manufactured in Chongqing. The company continues to invest a considerable amount in R&D, and aims to expand its production line for IoT, big data, and cloud computing. The investment will create 1,526 domestic employment opportunities.
Taiwan is the global leader in exports of machine tools, and the quantity demanded and quality of key parts and components have increased accordingly. Balls/Rollers play a crucial role among key parts and components of machine tools. Even just a small part, it allows the world to rotate more smoothly. Tan Kong Precision Tech Co., Ltd. is the leading manufacturer of precision beads in Taiwan, and is among few companies which are capable of manufacturing roller bearings and the rolling parts of the automobiles and aerospace industries. The company especially focuses on micro balls (<3.175mm), and its production technology rivals major Japanese companies , AKS and Tsubaki Nagashima. It has gained the recognition of major companies around the world, and is gradually replacing European and Japanese brands in the screw roller/guideway market. Its customers include SKF in Sweden, Bosch in Germany, and Schaeffler-INA in Germany; Hiwin, TBI MOTION, ABBA, and Japan’s IKO, as well as several large automobile parts manufacturers. The company’s original production lines are no longer sufficient to lower the impact of the trade war and meet customers’ demand for production in Taiwan, so the company decided to invest NT$1.7 billion to establish a new plant in Erlin Science Park as its base for expanding production in Taiwan. Besides bearing steel ball and roller production lines, the company’s production will gradually shift towards ceramic materials, and it is also actively developing integrated smart manufacturing system solutions for rollers. It will also add production and testing equipment. The company hopes to further upgrade its production technologies, equipment processes, and R&D capabilities through upstream and downstream technologies and technologies in different fields.
Now is the right time for Taiwanese businesses to relocate their global investments during the ongoing US-China trade war. The government is the strongest supporter of Taiwanese businesses in the war, and will continue to assist the businesses to move their advanced technologies and R&D back to Taiwan, and medium-high level production bases to be moved to New Southbound countries.
Spokesperson of InvesTaiwan: Acting COO He Kun-Sung
Telephone: 02-2311-2031 Ext.: 808
Mobile Phone: 0966-533-987
Email: ksho@moea.gov.tw
Source： Department of Investment Services, MOEA
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