Vice Premier Cheng: Initial Funding for National Financing Guarantee Mechanism Exceeds Expectations, Applications to Open Early July

The National Development Council (NDC) today hosted the signing ceremony for letters of intent on the 'Corporate Investment in the U.S. Financing Guarantee Mechanism.' Vice Premier Cheng Li-chun stated in her speech that the initial dedicated fund was originally projected at $1.2 billion, but ultimately exceeded expectations, reaching $1.375 billion (approximately NT$43.4 billion), with applications expected to be accepted starting early July.

The NDC held the signing ceremony for the 'Corporate Investment in the U.S. Financing Guarantee Mechanism,' inviting Vice Premier Cheng Li-chun, American Institute in Taiwan (AIT) Director Brent Christensen, and Bankers Association of Taiwan Chairman Tung Jui-pin. Representatives from financial institutions including Hua Nan Commercial Bank, Mega International Commercial Bank, China Trust Commercial Bank, Yuanta Bank, Land Bank of Taiwan, Chang Hwa Bank, Taiwan Business Bank, Bank of Taiwan, First Commercial Bank, Hua Nan Bank,永豐銀行, Cathay United Bank, Fubon Bank, Taishin Bank, and E.Sun Commercial Bank also attended.

To support corporate investment in the U.S., the NDC has established the 'Support for Corporate Investment in the U.S. Financing Guarantee Mechanism,' with funding to be injected in five phases. In the first phase, eight state-owned banks and seven private banks are participating. The National Development Fund is contributing $800 million, and banks are contributing $570 million, bringing the total initial dedicated fund to $1.375 billion, enabling support for corporate financing of nearly $55 billion.

Cheng stated that during the planning phase, she expressed gratitude to NDC Minister Yeh Juu-shyang for listening to valuable input from multiple banks, as well as to the Financial Supervisory Commission, Ministry of Finance, and other agencies for their efforts. However, she emphasized that having a plan alone is insufficient—the key lies in the active participation of public and private banks and the support of the Bankers Association. The initial dedicated fund was originally set at $1.2 billion, but funding has now reached $1.375 billion, exceeding the target, with applications expected to be accepted in early July.

Cheng noted that Taiwan and the U.S. have long been important economic partners with close cooperation in high-tech fields. Although U.S.-Taiwan trade negotiations over the past year began with trade imbalances, these imbalances reflect a complementary and closely cooperative partnership. Looking ahead, the U.S. is the global center of AI development, while Taiwan is an irreplaceable key force in the AI era. U.S.-Taiwan cooperation can jointly advance and consolidate the democratic camp’s leadership in high-tech industries—this was the shared strategic goal when Taiwan and the U.S. signed an investment cooperation Memorandum of Understanding (MOU) in January.

Cheng mentioned that the MOU proposed the 'Taiwan Model,' including corporate-led investment planning, government credit guarantee mechanisms supporting financial institutions in providing up to $250 billion in credit services, and U.S.-Taiwan collaboration to jointly build industrial clusters. The U.S. government has committed to assisting with land, water, electricity, infrastructure, visas, and streamlined administrative measures.

Cheng stated that through the Taiwan corporate investment in the U.S. financing guarantee mechanism, she invites the financial and industrial sectors to collaborate, taking a crucial step toward expanding international presence and deepening investment in the U.S., thereby strengthening the U.S.-Taiwan high-tech strategic partnership and building a democratic supply chain.

Brent Christensen stated that the signing of the Agreement on Reciprocal Trade (ART) and the MOU marked a historic step forward in U.S.-Taiwan relations. To implement these agreements, the U.S. and Taiwan are working to promote Taiwanese investment in the U.S., including evaluating the development of industrial parks. The signing of today’s letters of intent plays a vital role.

Christensen noted that when companies like TSMC, Wistron, and GlobalWafers become household names in the U.S., American citizens will personally understand the value that U.S.-Taiwan relations bring to their lives, ushering in a new golden age of economic partnership centered on the AI revolution. (Edited by Pan Yi-ching)