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2018-10-08
Launch of the “2018 Taiwan Business Alliance Conference” and Signature of LOIs with 23 Companies
To attract foreign investment to Taiwan, the Ministry of Economic Affairs hosted the “2018 Taiwan Business Alliance Conference” at Taipei International Convention Center on October 8, 2018. The Conference was hosted by the Minister of Economic Affairs Jong-Chin Shen and President Ing-Wen Tsai attended the Conference as an honored guest. Minister Jong-Chin Shen also signed LOIs with 23 representative foreign companies at the Conference. The top three countries of the 23 signatory companies included Japan with 8 companies (35%) which was followed by the United States with 4 companies (17%), and Singapore and Switzerland in third place (9% each). There were also companies from New Southbound countries (e.g. Thailand). The government began advancing the “5+2 Industrial Transformation Plan” such as the “Asia Silicon Valley”, “Smart Machinery”, “Green Technology”, “Biotechnology and Medicine”, “National Defense”, “New Agriculture”, and “Circular Economy” in 2016 for the development of key technologies and bridging gaps in the industrial chain such as artificial intelligence, Internet of Things, and smart manufacturing to attract foreign investment. These programs have attracted many multinational companies to invest and pursue business opportunities in Taiwan. The LOI signatories in this event consisted mostly of related industries of the “5+2 Industrial Transformation Plan”. They included British company ARM which shall continue to invest in the semiconductor industry in Taiwan, particularly in related IoT and AI applications; Singaporean company UnaBiz invests in Taiwan for research and development of IoT technologies and devices; Japanese company LINE will expand investments in Taiwan; BVI company CHANGING.AI will establish a R&D center in Taiwan for the design and development of AI service system framework; Dutch company Boskalis will invest in offshore wind farms with Taiwanese companies; Belgian company Geosea NV will cooperate with Taiwan Shipbuilding Corporation in offshore wind farm construction; Energy Absolute PCL Group from Thailand will produce lithium batteries for electric vehicles in Taiwan; Straumann AG, the largest dental implant system manufacturer in Switzerland, will establish a branch company and R&D center in Taiwan; Jellice Pioneer Private Limited from Singapore will invest in the production and R&D of functional collagen products; Swiss company SHL will establish a subsidiary company for producing medical equipment in Taiwan. Taiwan is a world leader in flat panel display and semiconductor industries and Taiwan specializes in process innovation and product commercialization. It also has a comprehensive industrial cluster and attracts investment from materials, equipment, and logistics operators in the manufacturing sector. For instance, American company Entegris has expanded its technology center and production in Taiwan to satisfy growing demands for industrial applications of microelectronics and high-end graphite products; Japanese company Senju Metal Industry has established a semiconductor materials plant in Taiwan; American solenoid valve producer MVT RE has established a plant in Taiwan; American company Innovion plans to set up a foundry ion implantation plant; German company DHL and Japanese company NRS Corporation plan to establish smart logistics warehouses in Taiwan. Taiwanese consumers readily accept innovation and internationalization and it makes Taiwan a very suitable place for experimenting various service industries such as catering and food. Commercial infrastructure for shopping, leisure, and catering are also being developed in Taiwan which has attracted Mitsui Fudosan to invest in outlets as well as hotels in Taiwan; American company Expedia Group plans to concentrate related NTD transactions in offshore e-commerce to its subsidiary in Taiwan for processing; Daiwa House plans to construct commercial facilities in Taiwan; Minamishinshu Kashikobo established a dried fruit tourist factory in Taiwan; Turkish pastry and ice cream producer Mado and Sushiro from Japan established stores in Taiwan. The MOEA’s LOI company selection was based on an inventory of gaps in Taiwan’s industrial chain to attract international companies with key technologies to invest in Taiwan. It mainly focuses on whether companies can provide key technologies, talents, and positive effects on job creation that connects to requirements in Taiwan’s innovative industries instead of on the investment amount. Among the LOI signatories were at least 4 Forbes Global 1000 companies and 9 public companies which came to Taiwan for investment and technology collaboration. They also created more than 13,000 jobs. To promote the advantages and business opportunities in Taiwan’s investment environment and attract foreign investors, MOEA organizes large-scale investor events and organizes overseas investment missions headed by Deputy Ministers. The investment mission to the Americas was completed in the second half of July and the delegation visited 9 American companies including Lam Research, Synopsys, Boeing, and Pfizer and signed investment LOIs with 3 foreign investors. The investment mission to Japan was completed in mid-September 2018 and the delegation visited 9 Japanese companies including Kawasaki Heavy Industries, Mitsubishi Electric, and NEC. The investment mission to Europe is planned for the second half of October 2018. The MOEA will continue to focus on key industries and foreign companies who own key technologies by providing customized services, visits by foreign missions, and organizing investment missions to promote foreign investment in Taiwan and upgrade Taiwan industries. Department of Investment Services Spokesperson: Deputy Director Chen Hsiu-Chuan Office Number: 02-2389-2111 Ext.: 810, 0988-368-187 Email: alexchen@moea.gov.tw Contact Person: Lin Mei-Hsing, Section Chief Telephone: 02-2389-2111 Ext. 210, 0988-158-298 Email: mhlin2@moea.gov.tw
2018-07-14
2018 Taiwan Biotechnology Industrial Pavilion, Displaying the Strength of Taiwan’s Biotechnology Industry
The 2018 Taiwan Biotechnology Month - Bio Taiwan will take place at Nangang Exhibition Center from July 19-22. The scale of this year’s Bio Taiwan has been expanded, with a total of 600 participating manufacturers and over 1400 booths, making it one of the largest biotechnology expos in the Asia-Pacific region. The Industrial Development Bureau, MOEA will organize the “Taiwan Biotechnology Pavilion”, demonstrating the result of the government’s efforts of promotion and guidance for the development of biotech industries. The “Taiwan Biotechnology Pavilion” is located at N102 on the 4th floor of Nangang Exhibition Center. It will feature themes including promotion of innovative biomedical industry proposals through incentives and subsidies; an introduction to the Biotech and New Pharmaceutical Development Act; as well as ways to promote international cooperation in order to secure a standing on the global market. The pavilion will also exhibit R&D results of manufacturers under the guidance of the Industrial Development Bureau’s project.The newest version of the “2018 Biotechnology Industry White Paper” will also be issued on the day of the exhibition, explaining the current situation of Taiwan’s biotech industry development, and the efforts of relevant departments in promoting the industry. Also, as part of the Biotechnology Month exhibition, visitors at the event can check in through our fanpage in exchange for prizes. We welcome everyone in Taiwan to participate and behold the efforts of innovation from our biotechnology industry. The government lists the biomedical industry as part of the 5+2 Industrial Innovation Plan. The promotion plan for biomedical industrial innovation impulsed by the government comprises four major projects under the principle of “connecting the future, connecting the world, and connecting local industries”: “comprehensive ecosystem”, “integration of innovation clusters”, “connection with international market resources”, and “promotion of special key industries”. By 2017, there were 2,004 biotechnology manufacturers in Taiwan, with private investments in the biotechnology industry totaling 52.616 billion NTD. In order to promote further innovation in the biotechnology industry, the Ministry of Economic Affairs actively integrates local industry clusters, and displays R&D results and outstanding talent in order to attract investors from Europe, the US, and Japan, helping to facilitate international cooperation, expansion of the global market, and leading Taiwan to become the center of biomedical development in the Asia-Pacific region. Spokesperson: Industrial Development Bureau Deputy Director General Yu Chen-wei Telephone: 02-27541255 Ext. 2903, 0939-695369 Email: cwyu@moeaidb.gov.tw Contact Person: Lin Yu-Zhun, Division Chief of the Industrial Development Bureau Consumer Goods and Chemical Industries Division Telephone: 02-27541255 Ext. 2321, 0920-826-131 Email: yclin4@moeaidb.gov.tw
2018-03-15
Premier envisions biomedicine as next trillion-dollar industry
Premier Lai Ching-te on Thursday said that under the combined efforts of a number of ministries and agencies to promote the biomedical industry, initial successes have come in such areas as research and development of new pharmaceuticals and medical devices, an improved regulatory environment, capital market adjustments, cultivation of talent and the rise of an overall industry ecosystem. The remarks came following a presentation by the Ministry of Science and Technology (MOST) on efforts and progress in the ministry’s promotion of innovation in the biomedical industry Following the completion and opening of the National Biotechnology Research Park, ongoing efforts to strengthen industry development should begin with a mission to improve technology research and development together with the enhancement of related knowledge, innovation and the industry itself. Afterwards, as part of efforts to link future development of the industry to the health and care of the nation’s citizens, work related to technologies including precision medicine, specialty treatments and smart medicine should be proactively pursued. Under a grand strategy suited to a small country, Taiwan should also collaborate with international partners in laboring to turn biomedicine into Taiwan’s next trillion-NT-dollar industry. MOST indicated that the program to promote innovation in the biomedical industry has now yielded international approval for five new locally developed pharmaceuticals, and three new drugs were brought successfully to market in Taiwan in 2017. Additionally, a total of 55 medical devices introduced by Taiwan’s manufacturers went on to win premarket 510(k) clearances from the U.S. Food and Drug Administration, including 37 devices in the high-value segment. With this successful entry into high-end global markets, these local companies are further burnishing the “made in Taiwan” brand.
Advantages
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Taiwan has unique industrial advantages, such as a standard of medical-care technology, outstanding medical-care system.
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Taiwan's health insurance system and health insurance coverage are world class
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Taiwan owns comprehensive biotech cluster
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Taiwan government develops relevant laws and regulations to complete the legal biomedical environment
Focus of Policy
- Precision Health Strategy Development Program: The government is implementing strategies designed to build up Taiwan as a global leader in precision health and the development of high-tech solutions to epidemics. Those strategies include the following: (a) build a Taiwan Bio-Medical Data Commons; (b) develop high-precision disease prevention, diagnosis, and treatment systems; (c) develop high-precision epidemic prevention products; and (d) expand international biomedical business opportunities.
- National Biotechnology Research Park: To accommodate the development of translational medicine research, the "Innovation Incubation Center" has been set up in the Nangang National Biotechnology Research Park. Other institutions there include the National Laboratory Animal Center (NLAC), the Development Center for Biotechnology (DCB), and the Taiwan Food and Drug Administration (TFDA). The businesses based in the Park have access to startups in the biomedical field to seek more collaborative opportunities. Resources are available in the Park to provide one-stop assistance with such matters as clinical trials, commercialization of R&D results, and information on regulatory restrictions.
- Hsinchu Biomedical Science Park: Inside the Park are the "Biomedical Technology and Product Research and Development Center," the "Industry and Incubation Center," and the "Hsinchu Biomedical Science Park Hospital." These three major centers share R&D resources and take advantage of their proximity to the Hsinchu Science Park. Businesses based in the Park can join hands with the information and communication industry in the surroundings while engaging themselves in basic biomedical research and translational medicine research, commercialize and verify R&D results, and conduct clinical trials in the Park Hospital to shorten the time to market.
- BioMed Commercialization Center: The Ministry of Science and Technology established the "BioMed Commercialization Center," which, by integrating related resources and strengthening the incubation momentum, can provide businesses with such services as intellectual property analysis, bridging and matching, quick trial production, and clinical regulatory consultation to help expedite commercialization of biomedical technologies and international market exploration.
- Pingtung Agricultural Biotechnology Park: This is the first park in Taiwan that was set up specifically for the development of agricultural biotechnology. There are currently six industrial development hubs in place that focus on value-added natural products, value-added aquaculture, value-added livestock biotechnology, bioagricultural materials, energy-saving environmentally-controlled agricultural facilities, biotechnology testing, and contract manufacturing. With the services that are available in the Park (such as one-stop investor assistance, industrial talent referral, a steady supply of raw materials and supplies, startup assistance, and technical support), plus future sharing and integration of resources with the Taoyuan Agricultural Logistics Park, should help companies that are based in the Park take root in Taiwan while exploring business opportunities globally.
Tax Incentives
- The profit-seeking enterprise income tax rate is 20%.
- For the purpose of encouraging the incorporation or expansion of biotech and new pharmaceutical companies, investors who have invested in a biotech or new pharmaceutical company and have held the shares for more than three years are entitled to a deduction from the profit-seeking enterprise income tax payable for a period of five years starting from the year the tax liability is incurred. The amount is up to 20% of the acquisition cost of the shares.
- Biotech and new pharmaceutical companies undertaking R&D on new drugs or technologies are entitled to a deduction from their profit-seeking enterprise income tax liability. The deduction is limited to 35% within five years from the year the tax liability is incurred. When expenditure on research and development for the current year exceeds the mean R&D budget for the preceding two years, a tax deduction of up to 50% of the excess may be taken.
- Royalty payments to foreign companies for imported new production technologies or products that use patents, copyrights, or other special rights owned by foreign companies is, with the approval of the Industrial Development Bureau, MOEA, exempt from the corporate income tax.
- Imported machinery which local manufacturers cannot produce are eligible for duty-free treatment.
- Investment in smart machinery/5G: For investments of no less than NT$1 million and no more than NT$1 billion, either "5% of investment spending deducted from profit-seeking enterprise income tax (current FY)" or "3% of investment spending deducted from profit-seeking enterprise income tax, if total spending spread over three years" may be selected, but the total amount deducted may not exceed 30% of corporate income tax that year. The applicable period is expected to be extended to December 31, 2024.
- For the purpose of encouraging high-ranking professionals of biotechnology and new pharmaceutical companies or technology investors to hold shares, the investors will be exempted from comprehensive tax or profit-seeking enterprise income tax liability for the current year. Investors are entitled to pay taxes based on the actual trading price when the ownership of the shares is transferred. The profit is deducted from the costs of the shares.
- Supported by a majority of the directors that attended the Board of Directors meeting and account for at least two-thirds of all directors and upon approval by the competent authority, biotechnology and pharmaceuticals companies may issue stock certificates to high-ranking professionals or technical investors. Holders of the said stock certificates in the preceding paragraph may subscribe shares in certain quantities at the price agreed upon. The subscription price may be unrestricted by Article 140 of the "Company Act" where it says that the subscription price may not be below par value. The obtained shares are subject to income tax according to the requirement in the preceding paragraph about "deductibles for income from technical shares."
- A company employee who has obtained stock compensation worth a combined total of less than NT$5 million and continuously held the stock while remaining in the company's employ for at least two years may choose to be taxed on the market price of the stock at either the time the stock was obtained or the time the stock is sold, whichever is lower.
- Foreign special professionals who meet criteria are eligible for a 50% deduction of total income tax for amounts exceeding NT$3 million.
- Companies that set up operations in export processing zones, science industrial parks, or free trade ports are eligible for exemptions on import duties, commodity tax, and business tax for the import of machinery and equipment, ingredients, fuel, materials, and semi-finished products for their own use.
- Companies that use undistributed earnings to engage in substantive investments may exclude the amount when calculating their profit-seeking enterprise income tax.
- As of 31 December 2021, a proposed amendment to the "Act for the Development of Biotech and New Pharmaceuticals Industry" was under deliberations at the Legislative Yuan.
Research and Development Subsidies
Success Stories
Development of Clinical Trials
GSK and Novartis have come to Taiwan to set up clinical trial research centers for investigational new drugs. Merck, Pfizer, Johnson & Johnson, and MSD have also established clinical trial or related collaborative mechanisms with medical or R&D institutions in Taiwan, which help them conduct international/cross-regional clinical trials.
Creating Connections to Consolidate Capacity
GyroGear Ltd., a UK-based neuromuscular medical device company, announced a partnership with Foxconn in February 2021. Foxconn will assume responsibility for manufacture of the wearable medical device "GyroGlove" in Asia. The GyroGlove is the world's first and only wearable medical device that adopts cutting edge aerospace technology and satellite-grade mechanical gyroscopes to mechanically control trembling hands. This wearable can help persons with Parkinson's Disease and Essential Tremor to live independently.
Pursuit of Joint R&D Work and Technical Cooperation
Roche (Switzerland), Merck (Germany), and Chugai Pharmaceutical (Japan) formed a pharmaceutical alliance and signed an agreement with Taiwan's National Health Research Institutes (NHRI) and the National Biobank Consortium of Taiwan (NBCT) in March 2021 to collaborate in developing a platform for the use of Taiwanese biobanks for the development of precision treatments for cancers such as personalized cancer treatments.
Source: InvesTaiwan
Contact
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InvesTaiwan Service Center
Email:service@invest.org.tw / Information Window for Key Innovative Industries
Add: 10046 8F, No.1 Xiangyang Road, Taipei, Taiwan
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Key Innovative Industries in Taiwan - Biopharmacy (5.29MB)