-
2018-11-13
New Shipbuilding Facility to Break Ground Soon at Suao Port
After successfully winning the bid to lease 6 ha. of land and associated facilities near the Official Basin at Suao Port over one year ago, Lung Teh (LT) Shipbuilding Company formally received construction permits for the site on October 30th (2018). The company will start construction in December and should finish all new facilities on its Suao Port campus in March 2020. LT Shipbuilding operations at Suao Port are expected to create at least 200 new job openings. Taiwan International Ports Corporation (TIPC)’s active recruitment of companies to establish business operations at Suao Port, a branch port of TIPC’s Port of Keelung subsidiary, has begun bearing fruit. LT Shipbuilding signed their lease agreement with the Port of Keelung at the end of 2016 to lease land for its shipbuilding operations. The company will construct new shipbuilding and dockyard facilities, ultimately investing an estimated NT$2 billion and generating at least 200 new jobs that will give a significant and welcome boost to the local economy. A statement by TIPC notes that Suao Port has in recent years focused on bolstering its port-industry and tourism/recreation-related strengths. LT Shipbuilding will be joining other business ventures such as the Chii Lih Coral Museum and Brighthouse Hotel in the Suao Port family. In the not-too-distant future, Suao Port anticipates also welcoming new Free Trade Zone (FTZ) investments from businesses in the bamboo materials processing and renewable energy sectors, which will further maximize the utilization of port resources, create new revenue streams, and fuel new regional economic growth and prosperity. Contact:Port of Keelung, TIPC Phone: 03-9972010
2018-09-21
MOEA Investment Promotion Delegation Creates Collaboration Opportunities for Taiwan and Japan
Tseng Wen-Sheng, Political Deputy Minister at the Ministry of Economic Affairs (MOEA), led the 2018 MOEA Investment Promotion Delegation to Tokyo, Japan between September 18th and 21st. The delegation targeted industries of the 5+2 Industrial Innovation Plan, including green energy, circular economy, defense, and aerospace, as well as key industries of Taiwan. The delegation visited a total of 9 Japanese companies that play a key role in the global industry, and also held a forum for Taiwanese companies in Tokyo to learn about their business. The visit helped create collaboration opportunities between Taiwan and Japan’s industries, and is expected to bring even more investments that will drive Taiwan’s energy transition and enhance Taiwan’s industrial competitiveness. The primary achievements of this year’s Investment Promotion Delegation are as follows: 1. Strengthened collaboration in the aerospace industry and created business opportunities for small and medium enterprises (SMEs): Taiwan is focused on developing its defense and aerospace industries, which have continued to grow in the past few years in terms of output value, reaching NT$100 billion in the past two years. Kawasaki Heavy Industries is an important integrated systems company in Japan’s aerospace industry, and its scope of business also covers automobiles, vessels, and materials. Seeing the high potential of Taiwan’s aerospace industry, Kawasaki Heavy Industries detailed future cooperation opportunities between both sides to the delegation, and also arranged a visit to see the production line of its transport aircraft, which is a rare opportunity. Taiwan’s aerospace companies are already capable of manufacturing advanced metals and composite materials, and have obtained international certification as tier 1 aviation systems producers. We hope the companies will engage in more in-depth collaboration on the current foundation utilizing Kawasaki Heavy Industries’ connections in the industry and integration capabilities, so as to build on the advantages and expand the market of domestic companies. 2. Promoted the localization of the offshore wind power industry: Mitsubishi Electric is a world famous electronics and semiconductor company with years of experience working with Taiwanese companies. Mitsubishi Electric continues to invest in advanced precision semiconductor devices, and is expanding the usage of the devices in the offshore wind power industry. The parties broadly exchanged opinions on the future outlook and production capabilities of green energy and semiconductors, and the company made a commitment to work with Taiwanese companies in localizing the offshore wind power industry’s supply chain. 3. Expanded AI applications in Taiwan and provided precious experience in the development of renewable energy: NEC has operated in Taiwan for over 36 years and has always been an important partner to our information and logistics industries. NEC has actively invested in numerous AI R&D and testing projects in recent years, and has made many achievements, such as application in smart monitoring for city security, energy management, and power demand prediction management and usage. Taiwan has been promoting the AI industry in recent years, and interactions between Taiwan and Japan in AI R&D and application can be expected to become growingly frequent. We look forward to the NEC engaging in AI talent and technology exchanges with Taiwan in the future. Furthermore, the company’s energy storage system can effectively resolve the issue of instability when renewable energy is integrated into the power grid and balance power supply during peak load. The system has been successfully installed in Europe, America, and Southeast Asia. The visit will help provide better total solutions for developing the renewable energy industry in Taiwan. 4. Learned from Japan’s successful experience with energy transition: Taiwan plans to sequentially carry out energy transition and reduce its dependency on fossil fuel. To prevent air pollution from affecting citizens’ health, Taiwan also proposed the strategy to develop electric vehicles, including setting the policy goals of making all official vehicles electric by 2030, making all new scooters sold in 2035 electric, and making all new vehicles sold in 2040 electric. Facing the challenge of rapid changes in the energy sources, CPC Corporation, as the leading supplier of fuel in Taiwan, must carefully plan its future business strategy and transition plans, and the delegation therefore visited JXTG (formerly ENEOS) and NEDO. Both have successful examples and advanced concepts relating to energy transition, green energy deployment, and fuel cell vehicles. The delegation learned a great deal after in-depth discussions with the representatives of the two organizations, and plans to incorporate Japan’s course of development and experience into Taiwan’s future energy transition and industrial development policies. 5. Created business opportunities in the New Southbound market Itochu Corporation has been actively investing in Taiwan’s retail industry in recent years, and introduced a highly efficient cargo delivery and logistics system, providing an innovative business model. After the trade war recently broke out between China and the United States, Taiwanese businesses urgently need to consider new production bases and markets. Itochu Corporation has adjusted its business model along with social changes, and enjoys the advantage of having distribution channels throughout overseas markets. Combined with the flexible adjustment ability of Taiwanese companies overseas, it will surely gain some success in the ASEAN market. Members of the delegation included the Department of Investment Services, Energy Bureau, InvesTaiwan, Committee for Aviation Industry Development, High-Value Petrochemical Industry Promotion Project, Taiwan-Japan Industrial Collaboration Promotion Office, and the Green Energy and Environment Research Laboratories. The delegation’s main purpose is to facilitate investments and technical collaboration. The MOEA will continue to target overseas Taiwanese and foreign companies in key industries that possess key technologies, and will encourage them to make investments in Taiwan, drive industrial upgrade and transformation, and boost overall economic prosperity and growth. Department of Investment Services Spokesperson: Deputy Director Chen Hsiu-Chuan Office Number: 02-2389-2111 ext. 812 Mobile Phone: 0988-368-187 Email: alexchen@moea.gov.tw Contact Person: Section Chief Lin Mei-Hsing Office Number: 02-2389-2111 ext. 210 Mobile Phone: 0988-158-298 Email: mhlin2@moea.gov.tw
Advantages
-
In 2017, the gross product of Taiwan's aerospace industry was over 3 billion USD
-
Taiwan has established a supply chain hub for the global aerospace industry
-
Taiwan has a diverse range of commercial shipbuilding capabilities
-
High-quality workforce and ICT industry advantages is instrumental in developing innovative information security products
Policy Focus
-
Government-led leads the development of the defense industry: To promote exchange and cooperation between Taiwanese manufacturers and international enterprises in the defense industry, and to help manufacturers jointly explore the development opportunities offered by Taiwan's defense industry, the government integrates the resources of the Ministry of Economic Affairs and the Ministry of Science and Technology to meet the needs of national defense through the joint development of the defense industry.
-
Driving the Development of National Defense Industry Clusters: Aerospace industrial clusters are being established in Taichung, Tainan, Kaohsiung, and the National Chung-Shan Institute of Science & Technology in Taoyuan. Naval shipbuilding industrial clusters are being established in several locations, including Kaohsiung, Pingtung and Yilan. Information security industrial clusters are being established in Taipei and Hsinchu.
-
Development Programs: The government is actively planning the “Program for Bolstering the National Defense Industry” and the fifth-phase national information security development program. Through the manufacturing, procurement, and upgrading of defense weaponry and equipment, these programs will drive the development of technologies and supply chains in the civilian aerospace, shipbuilding, and information security industries.
Investment with Government Participation
-
To accelerate the transformation and upgrading of Taiwan's industries, the National Development Fund invests up to 49% of total equity in enterprises under the 5+2 Industrial Innovation Plan - Smart Machinery, Asia Silicon Valley, Green Energy, Biomedicine, Defense, New Agriculture, and Circular Economy. The National Development Fund has allocated NT$10 billion for investment in SMEs, cultural/creative industries, strategic services, and strategic manufacturing industries, with total investment not to exceed 49%. Investment is conducted in conjunction with a professional management company.
Tax and Tariff Incentives
- Business income tax rate in Taiwan is 20%
- 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
- Imported machinery that is not yet manufactured domestically may enjoy tariff-free treatment.
- 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.
- 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 on goods and services shipped abroad from such areas is zero.
R&D Subsidies
Success Stories
MB Aerospace ACTS (Taiwan)
MB Aerospace Group was established in 2000. It is headquartered in Motherwell, UK and has branches in the UK, USA, and Poland. The company is a global leader in the aerospace and national defense industries, and has complete manufacturing, processing, and supply chain capabilities which enable it to provide a variety of engineering solutions for the repair and manufacturing of aircraft engine parts. It acquired Asian Compressor Technology Services Co., Ltd. (ACTS) in Taiwan on January 22, 2018 in order to expand its operations in Asia.
Investments in Taiwan
The company acquired ACTS in Taiwan on January 22, 2018 and is making great efforts to achieve its manufacturing plan in Taiwan.
Assistance provided by InvesTaiwan
InvesTaiwan helped the company understand relevant investment review operating procedures, as well as adjust its business items to accelerate the application process. Furthermore, InvesTaiwan is currently helping meet MB Aerospace’s requirements as it works toward implementing its manufacturing plan in Taiwan.
Source: InvesTaiwan
Contact
-
InvesTaiwan Service Center
Email:service@invest.org.tw / Information Window for Key Innovative Industries
Add: 10046 8F, No.1 Xiangyang Road, Taipei, Taiwan
Download
Key Innovative Industries in Taiwan - National (2.41MB)