Corporate Investment in the U.S. Financing Guarantee Mechanism Raises $1.375 Billion in Initial Funding with 15 Banks Participating

Central News Agency

(CNA reporters Tseng Yun-ting and Hsieh Yi-hsuan, Taipei, 12th) The 'Corporate Investment in the U.S. Financing Guarantee Mechanism,' designed to assist Taiwanese enterprises in investing in the United States, has completed its initial fundraising phase. National Development Council (NDC) Minister Yeh Ju-hsien announced that 15 public and private banks have participated, raising $575 million. Combined with an $800 million contribution from the National Development Fund (NDF), the total initial dedicated funding reaches $1.375 billion.

The NDC held a signing ceremony today for letters of intent regarding the 'Corporate Investment in the U.S. Financing Guarantee Mechanism.' In his speech, Minister Yeh stated that Taiwan signed an Investment Cooperation Memorandum of Understanding (MOU) with the United States in January this year, establishing a bilateral investment cooperation framework. Going forward, Taiwan will collaborate with the U.S. on supply chain integration through the 'Taiwan Model,' deepening bilateral relations and laying the foundation for shared economic development goals and national security strategies.

Yeh emphasized that the core purpose of the financing guarantee mechanism is to reduce banks' credit risks, support financial institutions in providing corporate financing, assist Taiwanese enterprises in joining the U.S. supply chain, and establish industrial clusters—thereby enhancing the global competitiveness of Taiwan's technology industries and promoting the internationalization of domestic financial institutions.

According to Yeh, the planning phase of the program received strong support from both the financial and industrial sectors. To date, 15 public and private banks have participated in the initial fundraising, contributing $575 million. Together with the NDF’s $800 million investment, the total initial dedicated funding amounts to $1.375 billion.

Hsiao Chen-jung, Director of the NDC's Industrial Development Division, further explained that the financing guarantee mechanism has two primary objectives: deepening Taiwan-U.S. partnership and supporting enterprises in establishing operations in the U.S., while also promoting the internationalization of the financial sector. The overall program targets a total credit scale of up to $250 billion, with risk-sharing between the government and banks. The guarantee coverage can reach up to 50%, and the maximum credit limit per enterprise per phase is capped at $5 billion.

Hsiao stated that the guarantee applies to both domestic enterprises and foreign enterprises controlled by Taiwanese nationals, primarily focusing on the semiconductor and information and communications technology (ICT) supply chains. Eligible uses of funds include capital expenditures, working capital, and industrial cluster development. Since the announcement of the program, the NDC has received numerous inquiries from industry players, many of whom believe it will significantly facilitate U.S. investment and expansion.

Hsiao noted that the combined $1.375 billion contribution from the NDF and participating banks can support corporate financing of nearly $55 billion—exceeding the original initial target. The Financial Supervisory Commission (FSC) and the Ministry of Finance have also assisted by relaxing relevant regulations, including lowering risk weights, adjusting credit limits, and increasing financing caps for overseas factories. The minimum guarantee fee rate can be as low as 0.1%, the lowest level in history.

Hsiao added that the government has established a one-stop service mechanism. Enterprises need only submit their U.S. investment plans and funding requirements, after which banks and the National Financing Guarantee Center will handle credit evaluation, review, and loan approval processes, aiming to provide the most convenient service possible.

Tung Jui-pin, Chairman of the Association of Banks of Taiwan, speaking on behalf of the participating banks, stated that after intensive consultations between government agencies and the financial sector, Taiwan has successfully established a distinctive financing guarantee mechanism for corporate investment in the U.S. He believes this mechanism not only fulfills commitments under the Taiwan-U.S. investment MOU but also meets corporate funding needs while balancing financial institutions’ capital supply and risk-bearing capacity—a true 'win-win solution.'

Tung emphasized that the financial sector has always been the most loyal supporter of both the government and enterprises. Whether advancing economic and trade negotiations or supporting enterprises in overseas investments, factory setups, mergers and acquisitions, or trade expansion, Taiwan's financial institutions will provide full support.

The 15 public and private banks participating in the initial fundraising include: Cooperative Bank, Mega Bank, CTBC, Yuanta, Land Bank, Changhua Bank, Taiwan Business Bank, Bank of Taiwan, First Bank, Hua Nan Bank, Bank SinoPac, Cathay United Bank, Fubon, Taishin, and E.Sun Bank. (Edited by Yang Kai-hsiang) 1150612