Ministry of Economic Affairs' 3 Major NT$10 Billion Investment Programs Accumulate 550 Cases, Total Investment Exceeds NT$40 Billion

Central News Agency (Taipei, May 9th) – The National Development Fund, in conjunction with various ministries, is promoting seven major thematic NT$10 billion investment programs. Among them, the three major programs led by the Ministry of Economic Affairs – 'Strategic Manufacturing Industry,' 'Strategic Service Industry,' and 'Small and Medium-sized Enterprises' – have accumulated investments in 550 cases, assisting 457 companies. The National Development Fund has invested approximately NT$15.4 billion, driving at least NT$24.7 billion in private investment, with a total investment scale exceeding NT$40 billion.

In addition to the three major programs led by the Ministry of Economic Affairs, the seven major thematic NT$10 billion fund investment programs also include cultural creativity (Ministry of Culture), AI startups (Ministry of Digital Affairs), green growth (Ministry of Environment), and intelligent robotics (National Science and Technology Council).

Regarding the current progress of the three major programs, the Ministry of Economic Affairs pointed out that the 'Strategic Manufacturing Industry Program,' promoted from May 2015 to the end of April this year, has invested in 33 companies across 38 cases. Of this, the National Development Fund invested approximately NT$1.01 billion, driving private investment of about NT$6.52 billion, with a total investment of NT$7.53 billion. Currently, 18 companies have listed on stock exchanges or emerging stock markets, accounting for over half of the invested companies, and government funds have leveraged private investment by 6.5 times.

The investment areas for strategic manufacturing industries are mostly biotech and medical industries (30%), followed by green energy and environmental industries (18%), and semiconductor and ICT hardware industries (12% each). It also covers chemical materials, functional textiles, and agricultural technology industries, indicating that some traditional manufacturing industries also benefit in addition to the semiconductor supply chain.

The Ministry of Economic Affairs noted that the 'Strategic Service Industry Program,' promoted from February 2013 to the end of April this year, has invested in 89 companies across 101 cases. Of this, the National Development Fund invested approximately NT$3.02 billion, driving private investment of about NT$7.23 billion, with a total investment of NT$10.25 billion. Currently, 17 companies have listed on stock exchanges or emerging stock markets.

In the strategic service industry program, ICT application services accounted for the largest share at 47%. An example cited is Linker Vision, an invested startup specializing in computer vision and large visual models (LVMs) technology, which has received investment from NVIDIA and is actively deploying in smart city, autonomous driving, and industrial inspection markets.

Regarding the SME program, the Ministry of Economic Affairs stated that the first phase of the 'SME Program,' promoted from 2007 to the end of April this year, has accumulated investments in 285 companies across 350 cases. Of this, the National Development Fund invested approximately NT$9.412 billion, paired with investor funds of about NT$8.833 billion, for a total investment of approximately NT$18.245 billion.

In response to the funding needs of SMEs, the National Development Fund added another NT$10 billion in 2023 to launch the second phase of the program. As of the end of April this year, it has invested in 50 companies across 61 cases. Of this, the National Development Fund invested approximately NT$1.957 billion, with additional investor funds of about NT$2.194 billion, for a total investment of approximately NT$4.089 billion.

Regarding the review time for SME investments, the Ministry of Economic Affairs pointed out that since the launch of the second phase, after excluding ineligible cases and those voluntarily withdrawn, a total of 89 cases have been accepted. Of these, 61 cases have completed investment, and 4 cases are still under review. Currently, pre-investment evaluation and review have set timelines, with each case generally completing in about 1.5 to 2 months.

National Development Council Minister Kung Ming-Hsin recently stated that to strengthen relevant review and investment mechanisms, plans are underway to establish a NT$10 billion fund investment management platform to centrally manage the seven major thematic NT$10 billion funds, strengthening inter-ministerial oversight and performance review.

Looking ahead, the Ministry of Economic Affairs stated that for the strategic manufacturing and service industry programs, it will consider appropriately opening up investment targets to include offshore companies whose main operations are in Taiwan, to facilitate corporate overseas fundraising and market expansion. Additionally, it will evaluate increasing the investment ratio for early-stage startups and expanding the investment scale for single cases, as well as relaxing qualifications for co-investors, to further strengthen the program's investment capacity. (Editor: Zhai Sze-Jia) 1150509