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Advantage for New Generation Automobiles

  • Complete automotive industry supply chain

  • Suitable testing environment for self-driving vehicle

  • Extensive experience with information security technologies

  • Taiwan's manufacturing capability for automotive parts and components is also of high standard. Taiwanese manufacturers have a strong pool of expertise on motor drives, energy storage systems, power modules, power control systems and other technologies used by EV. A significant number of Taiwanese manufacturers now supply EV parts and components to international car makers, proof that Taiwanese parts suppliers have achieved international recognition.

  • Future developments in new-generation vehicle technology should see Taiwanese parts suppliers leverage their exceptional R&D capability to continue supplying international car makers with the necessary products to satisfy the demands of new technologies and fields.

  • Taiwan is densely populated and has a very complex transportation environment. Road traffic is a mix of pedestrians, motorcycles and automobiles compounded by a population where the use of ICT products in everyday life is very common. In the embracing of "C.A.S.E." as the direction for new-generation development, international cooperation can be used by Taiwan in every aspect to enhance the technical capabilities of the industry and make up for its deficiencies. Taiwan is also well-suited to become a demonstration facility for new-generation vehicles through new business models based on inter-disciplinary cooperation, and pilot trials for new energy vehicles.

  • The passing of the "Unmanned Vehicles Technology Innovative Experimentation Act" will also pave the way for self-driving facilities that will encourage foreign companies to choose Taiwan for product development and real-world testing.。

Policy Focus

  • The "Smart Electric Vehicle Industry Development Strategy and Action Plan" proposed by the government in 2010 defined strategic development goals, namely: (1) Support the development of smart electric vehicles (EV) through environmental protection, energy efficiency and carbon reduction standards; (2) Promote pilot trials of smart EVs; (3) Increase incentives for consumer car purchases; (4) Provide a friendly user environment for smart EVs; and (5) Advise on industry developments.

  • The "Air Pollution Control Action Plan" released in 2017 set a goal of halving air pollution by 2019. EVs will also be progressively introduced with the goal of converting all government vehicles and public buses into EV by 2030, followed by all sales of motorcycles and cars.

  • Specific promotion strategies include the commissioning of the Taiwan CAR Lab in 2019. This 1.75 ha site in Shalun Science City next to the Tainan HSR Station is the first closed-course self-driving vehicle demonstration facility in Taiwan. The facility is a testing platform for the development of smart vehicles, parts, components and systems. Testing scenarios incorporate the complex traffic conditions unique to Taiwan and Southeast Asia. In addition to serving as a facility for real-world testing and operation of self-driving vehicles, it also allows the general public to try out and learn about self-driving technology.

Tax Incentives

  • The corporate income tax rate of Taiwan is 20%.
  • Up to 15% of the company's R&D expenditures may be deducted from its corporate income tax that year.
  • Imported machinery that local-manufacturers cannot produce is eligible for duty-free treatment.
  • Royalties paid to foreign companies for new production technologies or products imported from overseas that have patent rights, trademarks, or various concessions are exempted from income tax after gaining approval from the Industrial Development Bureau, MOEA.
  • Companies or limited partnerships that make substantial investments with undistributed earnings may deduct it from their undistributed earnings.
  • Companies that move into export processing zones, science industrial parks, and free trade zones are exempted from import tariffs on machinery and equipment, raw materials, fuel, supplies, and semi-finished products. The business tax rate is zero for exporters of goods and labor services.

R&D Subsidies

 

成功案例

Success Stories

Investment in production and manufacturing

Honda Taiwan, a wholly-owned subsidiary of Honda Japan, plans to invest an additional NT$4 billion over five years starting from 2019. The production equipment at its Pingtung car assembly plant will be upgraded and new models introduced to strengthen its presence in the Taiwanese market. At the same time, Toyota not only acquired a stake in Fukuta but is also planning to engage in technical cooperation in automotive motors for EVs, and plug-in hybrids (PHV). NT$6 billion was also recently invested towards production line upgrades and the introduction of hybrid models.

Cooperation in testing facilities
  1. NVIDIA, the American graphics card maker, has signed an MOU with Taiwan's Ministry of Science and Technology as well as its subordinate National Research Laboratories to take part in the development of Taiwan's self-driving vehicle industry and to cooperate with Taiwan CAR Lab on technical applications.
  2. Magna from Canada has already established an R&D center in Taiwan to develop automotive ultrasonic sensors and associated parking/reverse assistance systems, automotive video and front recognition camera modules/systems. Additional investments are planned for R&D projects in new fields.

 

 

Source: InvesTaiwan

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Key Innovative Industries in Taiwan - New Generation Automobiles (2.40MB)

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