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Key Industries for Investment Promotion

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Key Innovative Industries

To stimulate economic growth, create new momentum for industrial development, and leverage the strengths of domestic businesses, Taiwan’s government, under the principle of “linking with local industries, domestic demand supporting industries, and entering international markets”, has been actively promoting the “5+N Innovative Industries” development program including the smart machinery, biomedicine, Asia Silicon Valley (Internet of Things), green energy, national defense, and circular economy industries, plus advanced semiconductors and other key industries. These plans will kickstart Taiwan’s next-generation industrial growth to achieve its vision of a fully digital economy that has a smart island infrastructure and high-value services and that is nuclear-free, energy efficient and has low carbon emissions.

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Internet of Things
Taiwan's government began implementing the "Asia Silicon Valley Development Plan" in 2016. The plan has two themes: "Promoting IoT innovation and R&D" and "strengthening the innovative entrepreneurial ecosystem." The plan aims to integrate technology R&D capabilities, talents, capital, and markets worldwide to drive the comprehensive transformation and upgrade of Taiwan's industries through the IoT.
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Biopharmacy
In order to build Taiwan as a hub for the biomedical industry in the Asia-Pacic region, our government launched the "Taiwan Precision Health Strategy Development Program" in May 2020. 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 and seize upon international biomedical business opportunities.
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Circular Economy
The circular economy is regarded as the most powerful engine of growth for the global economy in the post-pandemic era and Taiwan has included the circular economy as one of its key policies. The Executive Yuan announced the "Circular Economy Promotion Plan" in December 2018 and the Ministry of Economic Affairs was assigned to implement the plan with the two main strategies of "industrialization of the circular economy" and "circularization of industries".
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Communication
Taiwan launched the "Digital Nation & Innovative Economic Development Program (2017-2025)" (DIGI+) at the end of 2016. DIGI+ places equal emphasis on software and hardware, and builds infrastructure that will benefit digital innovation and lay a solid foundation for a digital nation. In 2021, the DIGI+ Program was renamed and upgraded to the "Smart Nation Program (2021-2025)" and included information security, Beyond 5G (B5G) satellite communications, next-generation semiconductors, cloud era industry transformation, advanced network construction, and other advanced technologies to promote the overall digital transformation of the nation, society, and industries.
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Next-Generation Vehicle
Mercedes-Benz launched its C.A.S.E. initiative in 2016. C.A.S.E. is an acronym that stands for the four key concepts of "Connected" (i.e. online connectivity), "Autonomous" (i.e. autonomous driving), "Shared & Services" (i.e. the principle of shared ownership of Mercedes-Benz vehicles, and the apps and partnerships that are shared with Mercedes-Benz), and "Electric." These concepts guide the company's development strategy. Moving forward, many auto makers will treat C.A.S.E. as the direction in which the development of new generation automobiles will be moving.
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Green Energy
The Taiwanese government views green power and renewable energy as one of the core strategic industries for responding to rapid changes in the energy environment, global trends in greenhouse gas reduction, and the goal of creating a non-nuclear homeland by 2025. The "Green Energy Technology Industry Innovation Promotion Plan" is the core of the new energy policy announced by the government in October 2016. The Plan focuses on the three major goals of "green energy promotion," "industrial development," and "technological innovation," which go together hand-in-hand with the four major themes of "energy creation, energy storage, energy conservation, and system integration.
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Information Security
Taiwan has adopted strategies and regulations to actively support the development of the information security industry in recent years. In 2018, the Executive Yuan published the "Information Security Industry Development Action Plan (2018-2025)" with the aim of cultivating information security startups, increasing employment in the information security industry, and increasing the output value of the information security industry. Taiwan enacted the "Cyber Security Management Act" to accelerate the development of the ICT security environment. The Act became effective on January 1, 2019.
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Semiconductor
The semiconductor industry cluster in Taiwan plays a leading international role as it is ranked first in the world by market share in both the wafer manufacturing industry and the packaging & testing industry. In the IC design industry, it is ranked second, while 92% of global leading-edge chip manufacturing capacity is concentrated in Taiwan. In response to changing global trends, the Taiwan government is promoting the establishment of an advanced semiconductor process ecology, and has adopted a target of achieving subnanometer process technology by 2030.
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International Logistics and E-commerce
Taiwan actively promotes free trade and internationalization, and supports companies in developing global operation and management models. It has set up "free trade zones" at six seaports and one airpor t . Companies setting up operations in the free trade zones may engage in a diverse range of businesses such as trade, warehousing, logistics, container (cargo) terminal operations, transshipment, transit, freight forwarding, customs clearance services, assembly, sor ting, packaging, repair, fabrication, processing, manufacturing, inspection, testing, display, and technical services.
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Smart Machinery
In response to the massive changes brought by IoT, 3D printing, AI, and robot technologies to life and industries, Taiwan implemented the "Smart Machinery Industry Promotion Program" in July 2016, in hopes of upgrading the precision machinery industry into the smart machinery industry. Taiwan aims to increase the output value of the machinery industry through cultivation of professional talent and overall industrial upgrading and transformation, so as to expand international cooperation and market opportunities.

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