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Ministry of Economic Affairs,R.O.C.

Administrative Reports

Minister Wang Mei-Hua's oral administrative report to the 8th session of the 10th Legislative Yuan

Minister Wang Mei-Hua's oral administrative report to the 8th session of the 10th Congress of the Legislative Yuan, the 4nd Plenary Meeting of the Economics Committee


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) before the Economics Committee. The organizational adjustments of the Ministry of Economic Affairs became effective on September 26. Following the organizational adjustments, the MOEA is divided into 6 departments and 6 administrations, which oversee 10 level-3 agencies to jointly promote the 3 major key programs of industrial innovation, trade development, and energy sustainability. I will briefly explain current economic circumstances and the focus of the MOEA’s administration. Please advise as necessary.

Current Economic Situation

The continuous effects of significant interest rate hikes by the central banks of Western countries in 2022 have led to a decline in the economic performance of major countries. The risks of an economic recession in Mainland China have risen and the technology competition between the United States and China has exacerbated uncertainties in the external environment. These developments have weakened the momentum for global economic growth. However, Taiwan has maintained stable growth despite the difficulties in the global economy and its average economic growth of 4.1% in the past three years (2020 to 2022) remained far higher than the global average of 2.2%. Last year saw a new record of US$479.4 billion in total exports and the per capita GDP surpassed US$30,000, which demonstrated the strength and resilience of Taiwan's economy and industries.

The International Monetary Fund (IMF) stated that global economic growth has remained weak and world trade is only expected to grow by 2% this year, which is far lower than the 5.2% growth in the previous year. The exports of Asian countries such as Japan, South Korea, and Singapore fell in the first half of the year. As a result of relatively high exports in the previous year, Taiwan's exports also fell. However, Taiwan has maintained a trade surplus so far while Japan and South Korea, both export-oriented countries, recorded trade deficits in the first half of the year.

The sluggish demand in the end markets continues to pressure Taiwan's export market and impact orders, which in turn affects the production of domestic businesses. As such, the MOEA used special budgets to promote the upgrade of industries and SMEs, which helped businesses overcome financial difficulties and increased their competitiveness. To assist enterprises in accelerating their smartization and decarbonization processes, the MOEA encouraged "larger businesses to support smaller businesses," and promoted programs for individual suppliers to expand the supply of guidance resources. Since July 2023, the MOEA has organized industry exchange seminars to actively support industries that face difficulties in operations such as the foundry, bicycle, tools and machinery, fastener, hand tool, textile, plastics, and rubber industries. The MOEA is currently implementing the "Promote Good Products Abroad" program with an additional NT$2 billion budget to diversify export markets, attract buyers to purchase directly from Taiwan, strengthen business opportunities for products made in Taiwan, and expand trade financing support.

Direction and Implementation of the MOEA's Administration

In response to this critical moment amid global economic changes, the MOEA remains a steadfast supporter of industrial development and we make it our primary mission to steadily achieve economic growth. Thus, we have prioritized the stable supply of water and electricity in our policies and accelerated the net-zero transition of the energy and industrial sectors. We will also maintain our lead in the semiconductor industry, build on our R&D capabilities for next-generation industries such as AI, and actively attract investment and intensify trade cooperation with foreign partners to consolidate Taiwan's leading position in the global economy.

I. Stable Supply of Water and Electricity and Optimization of the Business Environment

In response to the growth in future demand for electricity and the decommissioning of large-scale power generation units, new small-scale gas-fired generation units were added at Taipower's Tunghsiao Power Plant this year. Unit 8 of the Datan Power Plant also completed the load test in September and will become available for dispatches starting in October. After the decommissioning of existing units, Taipower will increase the installed capacity of large-scale power generation units by at least 9,000MW before 2030.

Taipower has gradually improved its dispatch strategy to address the fluctuations in the supply of renewable energy due to changes in weather. During the day, the PV cells provide more than 6,000MW of electricity to ensure an abundant supply. The evening peak electricity consumption is concentrated to a period of 3 hours and Taipower uses pumped-storage hydropower to increase dispatch accuracy. It is expected to shave the evening peak electricity consumption by approximately 1,000MW this year.

The Wuxi-Niaozuitan Artificial Lake is expected to be completed before the end of this year. Coupled with the completion of the water purification plant, it will provide an additional 250,000 tons of surface water per day. Seawater desalination and reclaimed water treatment are also used to increase the stability of water supply. The Magong Seawater Desalination Plant in Penghu with a capacity of 6,000 tons was completed in June and now supplies water. Planning has begun for the construction of the Hsinchu and Tainan Seawater Desalination Plants, and the water supply from the Anping Reclaimed Water Plant has also been also increased to 20,000 tons.

II. Accelerating the Development of Low-Carbon Energy and Actively Promoting the Net-Zero Transition

Taiwan has spared no efforts in the development of renewable energy. As of July this year, the total installed capacity of renewable energy reached 16.3GW with the highest growth in wind power and photoelectricity (totaling 13.48GW), which is a 7-fold increase compared to 2016 (1.92GW). Hydrogen energy is a key strategy in the net-zero transition. CPC Corporation has actively engaged in technical exchanges with major hydrogen suppliers such as Australia, and plans to import the first mobile hydrogen refueling station in Taiwan before the end of the year for preliminary demonstration and verification of hydrogen energy vehicles. Taipower also entered a partnership with the German company Siemens and plans to complete a 5% demonstration of gas-fired hydrogen blending for power generation by 2025. It also worked with Academia Sinica to develop "carbon reduction and hydrogen-fired" power generation technologies and verification.

The EU will commence the CBAM transitional phase in October this year. The exporters included under management consist of producers of fasteners and steel and aluminum products, which are mostly SMEs. The MOEA actively monitors the latest legislative developments to help clarify details for filing declarations and protect the rights and interests of businesses. The MOEA plans to organize a workshop for filling out the product carbon content for CBAM compliance and help businesses learn how to report carbon emissions in response to the requirement for delivering the first CBAM report by the end of January 2024.

III. Maintaining Industrial Advantages and Consolidating Key Positions

Taiwan's semiconductor industry is currently the most efficient semiconductor production model in the world. To increase Taiwan's independence in terms of semiconductor materials and equipment, the MOEA has assisted 7 businesses in the development of photoresist materials and chip underfill. They completed customer tests and verification and invested NT$3.4 billion for subsequent mass production. The MOEA also assisted 8 businesses in investing in the development of advanced process and packaging materials, which will be introduced to downstream customers for verification by the end of 2024.

To encourage leading companies in Taiwan and abroad to set up operations for forward-looking technologies in the country, the MOEA focuses on artificial intelligence, new semiconductors, and next-generation communications as the top priorities, and has successfully encouraged 2 leading international companies to set up R&D centers in Taiwan. The increase of business opportunities in generative AI has increased the demand for high-speed computing chips. Taiwan's comprehensive AI server supply chain will power exponential growth for six major components including IC substrate and heat sinks, support the creation of an AI chip R&D ecosystem in Taiwan, and create significant potential for exports in the country.

IV. Strengthening International Connections and Expanding into Diverse Markets

Taiwan has continued to intensify cooperation with the United States, Europe, Japan, and Indo-Pacific nations to jointly construct a resilient and secure supply chain. Taiwan and the United States continued to leverage channels such as the "Taiwan-US Technology Trade and Investment Collaboration Framework" (TICC) and "Economic Prosperity Partnership Dialogue" (EPPD) to strengthen their partnership.

Taiwan and Japan also continued to strengthen their ties, particularly in the investment of critical semiconductor plants. A key Japanese semiconductor equipment manufacturer also continued its expansion in Tainan last year. In addition, the "Taiwan-EU Trade and Investment Dialogue" was elevated to ministerial meetings last year, which facilitated intensified communication in strategic trade and investment security issues this year.

In response to the supply chain de-risking measures, Taiwan has long been aware of the potential risks of international developments and has reaped significant results from the longstanding New Southbound Policy. The MOEA will continue to strengthen bilateral investments and exchanges, organize investment delegations, and build resilient supply chains with the countries included in the New Southbound Policy.


Rapid economic changes and international competition have a profound impact on the future of Taiwan's industries. The MOEA will continue to monitor development opportunities amid changes, improve the investment and business environment, guide industry upgrade, and set the stage for the development of next-generation forward-looking technologies. We will also promote the energy transition and net-zero sustainability while ensuring stable electricity supply to continue to expand Taiwan's advantages, enhance connections with the world, and become a reliable supply chain partner for common growth and prosperity.