Taiwan eyes $1.3 billion in foreign tech investment under new scheme

FILE PHOTO -General view of the city during sunset hour in Taipei, Taiwan, April 29, 2020. REUTERS/Ann Wang

TAIPEI (Reuters) - Taiwan hopes a new programme will attract T$40 billion ($1.34 billion) of research and development investment by foreign tech companies, creating more than 6,300 jobs a year, the government said on Thursday.

Taipei will spend more than T$10 billion in subsidies over the next seven years to attract the investment, Lin Chuan-neng, the island’s vice minister of economic affairs, said on Thursday.

“We will target three investment in three areas, which are 5G, artificial intelligence and semiconductors,” Lin told a news conference in Taipei.

“We hope to get them to Taiwan to do research and development,” he added. “We hope to boost related supply chains in Taiwan.”

The export-reliant island is home to tech behemoths like Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, the world's biggest contract chipmaker and supplier to U.S. tech giants such as Apple Inc AAPL.O.

Lin said the government wants to turn Taiwan into a “global hub for high technology” under the programme, in a bid to “seize the opportunity” amid a global reshuffle of the technology supply chain following U.S.-China trade tensions.

Taiwan’s government is in talks with international companies for future investments, Lin added, declining to give details.

($1=29.8960 Taiwan dollars)

Reporting by Yimou Lee; Writing by Ben Blanchard; Editing by Clarence Fernandez and Gerry Doyle