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Ministry of Economic Affairs,R.O.C.

Administrative Reports

Minister Wang Mei-Hua's oral administrative report to the 6th session of the 10th Legislative Yuan

Minister Wang Mei-Hua's oral administrative report to the 6th session of the 10th Legislative Yuan, the 2nd Plenary Meeting of the Economics Committee


Date: 2022-10-5


The following content is a translation of excerpts from the Minister's report.


Dear Chairman and Legislators,


It is such a pleasure for me to deliver the Administrative Report of the Ministry of Economic Affairs (MOEA) to the Economics Committee. I will briefly explain current economic circumstances and the focus of the MOEA’s administration. Please advise as necessary.



Current Economic Situation


Since the middle of this year (2022), with gridlock in the Russo-Ukrainian War, soaring inflation, countries adopting tight monetary policies, and disruptions to economic activity in China due to its power restrictions and zero-Covid policy, the latest forecast by international forecasting institution S&P Global forecasts economic growth to decelerate to 2.81%, well below the growth of 5.84% in the previous (2021) year.

The slowdown of the global economy and cooling of terminal demand will indeed affect some industries in Taiwan, such as optical equipment (panels), PCs, as well as others, all of which are facing greater pressure to destock. Also affected is the semiconductor industry. Although Taiwan is internationally competitive and its demand is still growing in advanced processing fields such as high-performance computing and 5G, mature processing (such as DRAM and control IC) have been affected by the decline in demand. We will continue to pay close attention to the respective economic risks and respond with caution.

The recent military exercises of China have increased the tensions within the cross-strait relations. However, Taiwan occupies a key position in the global technology supply chain and is highly linked to the rest of the world. Only when the Taiwan Strait is secure can technology and economy continue to develop globally. In addition to encouraging domestic key industries to develop in Taiwan, the MOEA has also successfully attracted semiconductor materials suppliers and equipment manufacturers such as in the United States, Europe, and Japan to invest and set up factories in Taiwan, or to set up R&D centers and expand their scientific research capabilities. At the same time, we will endeavor to help industry strengthen its close international connections, and through the industrial exchange platforms of Taiwan-US, Taiwan-Europe, and Taiwan-Japan, more optimal cooperation will be possible in important supply chain fields such as semiconductors, electric vehicles, 5G, and renewable energies; this will allow us to jointly maintain the regional stability of the Asia-Pacific region, and even the common interest of the world.



Direction and Implementation of the MOEA's Administration


The pandemic has further accelerated the digitalization of the world. The International Data Corporation (IDC) estimates that by next year, digital transformation and digital technology investment will contribute to more than half of the world's GDP. Furthermore, global warming has intensified, resulting in recent severe droughts in the United States, Europe, and China. In addition, the Russo-Ukrainian War has led to rising energy prices, which has increased risk in the stable supply of energy resources, reinforces the urgency of transition to net-zero emissions. Taiwan's advantages in ICT have laid a solid foundation for promoting digital transformation. Taiwan will work with its allies to strengthen supply chain resilience, expand its competitiveness in the industry, and allow more countries to cooperate with Taiwan; it will also improve the investment environment and strengthen investment confidence of domestic and foreign companies, while pragmatically promoting net-zero emissions by 2050 to create green growth opportunities.


  1. Expand industrial advantages: We maintained the lead in the semiconductor industry and used the advantages to power the development of more outstanding emerging industries such as 5G, electric vehicles, and biotech.
    To grasp business opportunities in global 5G applications, we leverage AI and IoT technologies to promote proof of concept of smart factory and smart industrial park applications and win more export opportunities. Taiwan's high-tech advantages help us gain a foothold in automobile computer and automobile controls and the high demand for high-end chips in electric vehicles also provides Taiwan's IC design industry with a niche in smart cockpit and autonomous driving applications. We also leverage Taiwan's ICT strengths to use biomedical big data for precision medical products and promote the development of the biotech and medical industries. To accelerate companies' digital transformation, we use digital technologies such as cloud services to help businesses rapidly respond to customer demand. We also use data analysis, sharing, and feedback to create new business models or new markets.


  1. Optimize the investment environment: Taiwan has a secure and stable supply chain that continues to attract investments in high-end manufacturing in Taiwan. We are committed to providing companies with water and electricity supply, land, and talents.
    To ensure the stable supply of electricity and the resilience of the grid, we have planned low-carbon and diverse sources of electricity including the continuous expansion of renewable energy equipment and the construction and expansion of gas-fired generation units to ensure the stable supply of electricity. To stabilize the supply of water resources, we created the Western Corridor Water Supply Network to maximize the effectiveness of regional water resource allocation. We strengthen the recruitment of professional talents from foreign countries, and consolidate the resources of the industries, government, and academia to train professional talents necessary for semiconductor companies and satisfy their demand for talents.


  1. Strengthen international connections: Geopolitical risks such as the Russo-Ukrainian War demonstrate the importance of enhanced cooperation with international partners with similar values. We continuously seek to join the "Comprehensive and Progressive Agreement for Trans-Pacific Partnership" (CPTPP) and we have established trade dialog mechanisms such as the Trade and Investment Framework Agreement (TIFA), "Economic Prosperity Partnership Dialogue" (EPPD), and "Technology Trade and Investment Collaboration Framework" (TTIC) to continue to strengthen cooperation in trade and the supply chain. The United States and Taiwan recently commenced negotiations on "U.S.-Taiwan Initiative on 21st-Century Trade", which marks a major development in U.S.-Taiwan trade relations and will help Taiwan access CPTPP and the Indo-Pacific Economic Framework (IPEF).


  1. Accelerate the arrival of net-zero transition: To keep up with global net zero development trends, we continue to expand renewable energy construction to provide Taiwanese industries with sufficient low-carbon electricity. We also implement numerous projects to help companies obtain green energy and certificates with greater convenience and meet requirements of the international supply chain.
    We develop new forward-looking net zero technologies and established the "Hydrogen Implementation Team" to actively facilitate international cooperation with German and Japanese companies. We also develop CO2 capture and utilization (CCU) demonstration site technologies to facilitate emissions reduction and transformation of industries with high carbon emissions such as steel and petrochemicals.
    We fully support energy conservation by strengthening energy efficiency management in major energy-consuming industries, energy conservation on business premises, and improving the efficiency of electricity consumption in government agencies and schools. We provide counseling resources and strengthen the dialogue with industries to build consensus on carbon reduction.





As Taiwan faces rising geopolitical risks, the world needs a secure supply chain. From supporting the production of chips for the global automotive industry, to assisting countries in promoting the development of the semiconductor industry, Taiwan has proven to the world that it is a trusted partner. The MOEA will actively work closely with international partners of similar values in global emerging technology applications and sustainable/net-zero initiatives, enhance supply chain resilience, and maintain Taiwan's key position as a leader.