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The government’s industrial policy is aimed at seizing opportunities presented by the next generation of industrial development and at tapping domestic industry’s niche advantages.


‘Five plus two’ innovative industries program


The strategy of the program focuses on linking industry with local academic and research institutes’ resources and talent cultivation, while at the same time, under the principle of balanced regional development, integrating and utilizing the capacity of the central and local governments, and introducing technology and talent from advanced nations, in order to make these strategic industries more internationally competitive, as well as to spur the upgrading of supporting small and medium industries and related service sectors so that they can become the engines of the next stage of Taiwan’s economic take-off.


Smart machinery:

The focus is on developing Taichung’s precision machinery industry cluster into a cutting-edge smart machinery industry cluster and ultimately a leading center in Asia of related pilot demonstration projects.


Asian Silicon Valley Plan (IoT):

The plan is centered on Tainan and is aimed at assisting the upgrading of Taiwan industry through IOT, and promoting economic growth through innovation and entrepreneurship. Strategies include integrating Silicon Valley’s R&D and Taiwan’s manufacturing capacities, linking with world-leading science and technology clusters, and making inroads into next-generation industries, with the goal of making Taiwan into a base for Asia-Pacific youth innovation and entrepreneurship development


Biotech pharmaceuticals:

The strategy includes enhancing global links and integration with local innovation clusters, and linking Nangang biotech industry park, Jhubei medical materials R&D park, Central Taiwan Science Park and Southern Taiwan Science Park, with the goal of upgrading “talent, capital, intellectual property, regulatory environment and integration resources” to transform Taiwan into an Asia-Pacific biotech pharmaceutical R&D center.


Defense industry:

The focus is on utilizing Taiwan’s defense needs to encourage industry to upgrade its technology and establish system integration capacity, in order to create a “national defense industry cluster,” with Taipei, Taichung and Kaohsiung serving as the centers of the information security, aerospace and shipbuilding sectors, respectively.


Green energy:

This includes establishment of a Smart Green Energy Science Park in Shalun, Tainan. By combining central and local government resources, the park will include a joint research center, demonstration fields, bilingual schools, smart green circular housing units, and other facilities that add up to a low-carbon and smart environment. The goal is to bring industrial and academic resources together, forming an industry cluster with 30 parks within a 45-kilometer radius of the Shalun science park, thereby making it one of the top green energy innovation and industrial ecosystems in the world.  

               (Source: Industrial Development Bureau)


R&D, Technology Development


The MOEA’s goals include helping industry to enhance its R&D capacity and fostering the development of emerging industries. The Ministry supports industrial technology development and value creation by research institutes, such as the Industrial Technology Research Institute, Institute for Information Industry, and Metal Industries Research and Development Centre, as well as by industry and academic institutions, through various Technology Development Programs (TDPs). About 85% of the TDP budget is allocated for R&D organizations, which includes supporting development of forward-looking industrial technologies by research institutes and subsequent transfer of the resulting technologies to industry.


  (Source: Department of Industrial Technology)


New Southbound Policy


The government’s “New Southbound Policy” is aimed at forging not only stronger economic and trade links but also closer science and technology, culture, tourism, education and other people-to-people links with the nations of Southeast Asia, South Asia, Australia and New Zealand.

In line with this policy, the MOEA actively works to enhance Taiwan’s bilateral economic and trade relations as well as investment and industry cooperation with New Southbound countries as part of efforts to diversify export markets and expand value chains for Taiwanese enterprises. Efforts include enlarging the scope of economic dialogue platforms to establish closer partnerships, pursuing bilateral economic cooperation agreements, promoting the “Taiwan-ASEAN Strategic Investment Partnership Plan,” engaging in industry collaboration, conducting personnel training and business exchanges, and promoting various other mutually-beneficial cooperative initiatives with New Southbound countries.


 (Source: Bureau of Foreign Trade)


New Energy Policy


Chronology of Taiwan’s Energy Policy

--In order to accelerate the development of renewable energy and mitigate greenhouse gas emissions, the government has promulgated various energy-related acts (Renewable Energy Development Act, Energy Administration Act Amendment, and GHG Emission Reduction and Management Act) and action plans since 2009, setting targets for energy efficiency improvement, GHG emissions reduction, and renewable energy development.

--Soon after President Tsai Ing-wen took office in May 2016, the MOEA announced the New Energy Policy, which is aimed at phasing out nuclear energy and increasing the share of renewables in electricity generation to 20%.


GHG Emissions Reduction Target

--Under the GHG Emissions Reduction and Management Act, the goal is to reduce GHG emissions to less than 50% of levels in 2005 by the year 2050.

--In November 2015, the government submitted its Intended National Determined Contributions (INDCs) to the United Nations Framework Convention on Climate Change, committing to reduce Taiwan’s GHG emissions by 50% from the BAU (business as usual scenario if there were no intervention) by the year 2030, or roughly 20% lower than 2005 levels.

greenhouse gas emission


New Energy Policy Vision

Energy transition and electricity market reform are being carried out with the aim of establishing a low-carbon, sustainable, stable, and economically efficient energy system. Major elements of the plan include achieving the goal of a nuclear-free Taiwan; actively developing green energy and increasing the share of renewables in total electricity generation to 20%; accelerating the construction of Taiwan’s third LNG receiving terminal, and expanding the use of natural gas; and completing revision of the Electricity Act to facilitate energy transition.

(Source: Bureau of Energy)

Update: 2019-03-13
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