National Development Fund Becomes 'Lightning Rod Mechanism'; Chen Ying-chih: Helps Us Block Fake Investment Cases
Hushan Industrial Chairman Chen Ying-chih stated that the National Development Fund acts as a 'lightning rod mechanism' to filter out 'fake investment cases,' assisting the company's investment decisions. Through joint investments with the National Development Fund, Hushan aims to select quality investment targets and expand its business.
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- 📰 Published: May 9, 2026 at 10:44
- 🔍 Collected: May 9, 2026 at 11:01 (17 min after Published)
- 🤖 AI Analyzed: May 9, 2026 at 14:49 (3h 47m after Collected)
Central News Agency
(Central News Agency reporter Tseng Yun-ting, Taipei, 9th) "The National Development Fund has helped us block many fake cases," said Chen Ying-chih, chairman of Hushan Industrial, who also serves as a co-investor with the National Development Fund, recounting the risks that both enterprises and governments bear when acting as angel investors. However, when talking about applying to become a co-investor with the National Development Fund back then, Chen Ying-chih smiled and said that what he valued was the National Development Fund's long-standing review mechanism, hoping to use it to screen out high-quality targets for Hushan and further expand its business territory.
Established in 1972, Hushan Industrial primarily specializes in automotive aftermarket (AM) door handles. In the global AM market, 5 out of every 10 car door handles come from Hushan, with a market share of 50%. In recent years, the company has diversified its layout, extending its reach to automotive cameras, ultrasonic radars, etc. Last year, its revenue reached NT$1.6 billion, with an annual growth of 22%.
Chen Ying-chih is the second-generation successor of Hushan Industrial, leading the company to officially list last year; few people know that his other identity is a "co-investor" in the second phase of the Ministry of Economic Affairs' "Scheme to Strengthen Investment in Small and Medium-sized Enterprises."
Speaking of the opportunity to cooperate with the National Development Fund, it goes back to 2022, when Chen Ying-chih won the Entrepreneurial Model Award from the National Innovation and Entrepreneurship Federation and, through the federation, came into contact with the Ministry of Economic Affairs' "Scheme to Strengthen Investment in Small and Medium-sized Enterprises." The National Development Fund allocated NT$10 billion to invest in potential SMEs. The second phase of the plan widely invited strategic investors and corporate venture capitalists to participate, which greatly interested Chen Ying-chih.
He admitted in an exclusive interview with the Central News Agency that Hushan at that time lacked venture capital and M&A experience, and its human resources and professional capabilities were relatively limited when evaluating investment cases. If it could leverage the National Development Fund's professional team for due diligence (DD), it could just fill this gap.
According to the scheme's regulations, the National Development Fund and investment partners can jointly contribute up to a 2:1 ratio, with a single enterprise's single investment limit of NT$100 million and a cumulative total not exceeding NT$150 million, and government shares cannot become the largest shareholder. The aim is to improve investment efficiency and industry connectivity through private enterprise participation.
"The National Development Fund has actually helped us block quite a few fake cases," Chen Ying-chih revealed. In the past, when he sought investment targets on his own, he would visit potential companies, and they would initially be very welcoming, but as soon as they heard that they had to go through the National Development Fund's DD process, some companies would immediately back out.
With the National Development Fund's reputation, "many irregular cases naturally retreated," Chen Ying-chih smiled.
In January this year, Hushan saw the fruition of its cooperation with the National Development Fund in an investment case. Hushan announced its participation in Weien Industrial's cash capital increase, investing NT$60 million and acquiring a board seat. The National Development Fund also invested NT$60 million in a matching proportion.
Chen Ying-chih revealed that initially, the National Development Fund's outsourced team's valuation of Weien differed from Weien's expectations. Later, Weien provided details of its real estate holdings, and after the evaluation team confirmed the potential value of the land assets, the three parties reached a consensus on the capital increase price.
That is to say, the National Development Fund played a key role in the negotiation process, not only reducing potential biases or information asymmetry in private investments but also improving the objectivity of investment decisions, ensuring that every penny is invested in truly potential technologies.
Chen Ying-chih stated that compared to general financial venture capitalists who focus on capital returns, corporate investors can provide more substantial industrial resources, such as Hushan assisting Weien in introducing existing customer orders, helping to expand into international markets such as North America, and sharing operational management experience, thereby accelerating enterprise growth.
He also suggested that the National Development Fund could consider further relaxing investment restrictions in the future to include emerging stock market companies with transformation needs. In fact, many emerging stock market companies possess technical capabilities but face long-term difficulties in fundraising due to low stock prices and net worth. If they can be assisted in transformation through a government-enterprise joint investment model, there is an opportunity to regain competitiveness.
Looking ahead, Chen Ying-chih said that the cooperation model with the National Development Fund can help Hushan's investment vision extend further and deeper. In the future, the company will continue to seek potential Taiwanese hidden champion enterprises through the joint investment mechanism and connect with more industry partners to jointly expand into international markets through alliances. (Editor: Pan Yi-ching) 1150509
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(Central News Agency reporter Tseng Yun-ting, Taipei, 9th) "The National Development Fund has helped us block many fake cases," said Chen Ying-chih, chairman of Hushan Industrial, who also serves as a co-investor with the National Development Fund, recounting the risks that both enterprises and governments bear when acting as angel investors. However, when talking about applying to become a co-investor with the National Development Fund back then, Chen Ying-chih smiled and said that what he valued was the National Development Fund's long-standing review mechanism, hoping to use it to screen out high-quality targets for Hushan and further expand its business territory.
Established in 1972, Hushan Industrial primarily specializes in automotive aftermarket (AM) door handles. In the global AM market, 5 out of every 10 car door handles come from Hushan, with a market share of 50%. In recent years, the company has diversified its layout, extending its reach to automotive cameras, ultrasonic radars, etc. Last year, its revenue reached NT$1.6 billion, with an annual growth of 22%.
Chen Ying-chih is the second-generation successor of Hushan Industrial, leading the company to officially list last year; few people know that his other identity is a "co-investor" in the second phase of the Ministry of Economic Affairs' "Scheme to Strengthen Investment in Small and Medium-sized Enterprises."
Speaking of the opportunity to cooperate with the National Development Fund, it goes back to 2022, when Chen Ying-chih won the Entrepreneurial Model Award from the National Innovation and Entrepreneurship Federation and, through the federation, came into contact with the Ministry of Economic Affairs' "Scheme to Strengthen Investment in Small and Medium-sized Enterprises." The National Development Fund allocated NT$10 billion to invest in potential SMEs. The second phase of the plan widely invited strategic investors and corporate venture capitalists to participate, which greatly interested Chen Ying-chih.
He admitted in an exclusive interview with the Central News Agency that Hushan at that time lacked venture capital and M&A experience, and its human resources and professional capabilities were relatively limited when evaluating investment cases. If it could leverage the National Development Fund's professional team for due diligence (DD), it could just fill this gap.
According to the scheme's regulations, the National Development Fund and investment partners can jointly contribute up to a 2:1 ratio, with a single enterprise's single investment limit of NT$100 million and a cumulative total not exceeding NT$150 million, and government shares cannot become the largest shareholder. The aim is to improve investment efficiency and industry connectivity through private enterprise participation.
"The National Development Fund has actually helped us block quite a few fake cases," Chen Ying-chih revealed. In the past, when he sought investment targets on his own, he would visit potential companies, and they would initially be very welcoming, but as soon as they heard that they had to go through the National Development Fund's DD process, some companies would immediately back out.
With the National Development Fund's reputation, "many irregular cases naturally retreated," Chen Ying-chih smiled.
In January this year, Hushan saw the fruition of its cooperation with the National Development Fund in an investment case. Hushan announced its participation in Weien Industrial's cash capital increase, investing NT$60 million and acquiring a board seat. The National Development Fund also invested NT$60 million in a matching proportion.
Chen Ying-chih revealed that initially, the National Development Fund's outsourced team's valuation of Weien differed from Weien's expectations. Later, Weien provided details of its real estate holdings, and after the evaluation team confirmed the potential value of the land assets, the three parties reached a consensus on the capital increase price.
That is to say, the National Development Fund played a key role in the negotiation process, not only reducing potential biases or information asymmetry in private investments but also improving the objectivity of investment decisions, ensuring that every penny is invested in truly potential technologies.
Chen Ying-chih stated that compared to general financial venture capitalists who focus on capital returns, corporate investors can provide more substantial industrial resources, such as Hushan assisting Weien in introducing existing customer orders, helping to expand into international markets such as North America, and sharing operational management experience, thereby accelerating enterprise growth.
He also suggested that the National Development Fund could consider further relaxing investment restrictions in the future to include emerging stock market companies with transformation needs. In fact, many emerging stock market companies possess technical capabilities but face long-term difficulties in fundraising due to low stock prices and net worth. If they can be assisted in transformation through a government-enterprise joint investment model, there is an opportunity to regain competitiveness.
Looking ahead, Chen Ying-chih said that the cooperation model with the National Development Fund can help Hushan's investment vision extend further and deeper. In the future, the company will continue to seek potential Taiwanese hidden champion enterprises through the joint investment mechanism and connect with more industry partners to jointly expand into international markets through alliances. (Editor: Pan Yi-ching) 1150509
Choose to stand with the facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.