National Financing Guarantee Mechanism 'No More Big Pot' Adds Incentive, 15 Domestic Banks Respond
Taiwan's government will launch a national financing guarantee mechanism at the end of May to support companies investing in the US. The new mechanism adopts a 'each bank bears its own responsibility' model, moving away from collective loss-sharing, with 15 banks already expressing participation.
📋 Article Processing Timeline
- 📰 Published: May 11, 2026 at 16:27
- 🔍 Collected: May 11, 2026 at 16:32 (4 min after Published)
- 🤖 AI Analyzed: May 11, 2026 at 17:45 (1h 12m after Collected)
Central News Agency
(Central News Agency reporter Pan Tzu-wan, Taipei, 11th) National Development Council Minister Kung Ming-hsin stated today that the national financing guarantee mechanism to support companies investing in the United States is expected to be launched at the end of May, and 15 domestic banks have already responded. This mechanism adjusts the previous approach of co-sharing losses by participating banks, changing it to "do it yourself, bear it yourself," no longer "eating from the big pot." Currently, in addition to 8 state-owned banks, 7 private banks, including CTBC Bank, have responded.
After Taiwan-US tariff negotiations, to achieve the goal of "keeping roots in Taiwan, deploying globally" and implementing cooperation with the US supply chain under the "Taiwan Model," the National Development Council planned the "Mechanism for Supporting Enterprises to Invest in the United States Financing Guarantee." The government, through credit guarantees, will support financial institutions in providing a corporate credit line of up to US$250 billion, assisting companies investing in the US to obtain funds.
Hung Ming-hsin stated that the first phase funding target is US$1.2 billion, with the National Development Fund contributing approximately US$800 million and public and private banks contributing US$400 million, expected to be launched at the end of May. The first phase will support financial institutions in providing a financing line of approximately US$50 billion for companies investing in the US. When the utilization rate reaches over 80% of the current phase's financing line, the next phase will automatically begin.
Regarding the mechanism design, Hung Ming-hsin pointed out two differences in this design. First, it does not require banks to guarantee a one-time full payment of dedicated funds; it allows 1/5 to be paid first, with the remaining 4/5 paid when there is actual progress, reducing the pressure of a one-time full payment.
Second, Hung Ming-hsin pointed out that in the past, if a case encountered problems, all participating banks would collectively compensate. This time, it is changed to "do it yourself, bear it yourself, with the National Development Fund assisting," which means no longer "eating from the big pot." Bank operators are very positive about this design, finding it reasonable and fair.
Hung Ming-hsin stated that currently, in addition to 8 state-owned banks, 7 private banks have responded, with CTBC Bank being particularly active. He hopes more private banks will participate in the future. Based on current progress, public and private banks' contributions are expected to exceed US$400 million.
Media were concerned about companies' willingness to invest in the US and whether the registration for the first phase's US$50 billion financing line has been recorded. Hung Ming-hsin said that according to Ministry of Economic Affairs data, the total amount of intended US investments is approximately US$35 billion. Actual financing is difficult to predict because manufacturers can also raise funds through bond issuance or other channels, and companies are still evaluating.
The Ministry of Economic Affairs recently inventoried the willingness of semiconductor, AI, and server-related supply chain manufacturers to invest in the US, inquiring with about 20 Taiwanese companies, including UMC, GlobalWafers, Wistron, Quanta, Compal, and Foxconn. The investment intentions proposed by these companies amount to approximately US$35 billion, which is expected to become the first batch of key US investment projects. (Editor: Pan Yi-ching) 1150511
Choose to stand with 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 videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
(Central News Agency reporter Pan Tzu-wan, Taipei, 11th) National Development Council Minister Kung Ming-hsin stated today that the national financing guarantee mechanism to support companies investing in the United States is expected to be launched at the end of May, and 15 domestic banks have already responded. This mechanism adjusts the previous approach of co-sharing losses by participating banks, changing it to "do it yourself, bear it yourself," no longer "eating from the big pot." Currently, in addition to 8 state-owned banks, 7 private banks, including CTBC Bank, have responded.
After Taiwan-US tariff negotiations, to achieve the goal of "keeping roots in Taiwan, deploying globally" and implementing cooperation with the US supply chain under the "Taiwan Model," the National Development Council planned the "Mechanism for Supporting Enterprises to Invest in the United States Financing Guarantee." The government, through credit guarantees, will support financial institutions in providing a corporate credit line of up to US$250 billion, assisting companies investing in the US to obtain funds.
Hung Ming-hsin stated that the first phase funding target is US$1.2 billion, with the National Development Fund contributing approximately US$800 million and public and private banks contributing US$400 million, expected to be launched at the end of May. The first phase will support financial institutions in providing a financing line of approximately US$50 billion for companies investing in the US. When the utilization rate reaches over 80% of the current phase's financing line, the next phase will automatically begin.
Regarding the mechanism design, Hung Ming-hsin pointed out two differences in this design. First, it does not require banks to guarantee a one-time full payment of dedicated funds; it allows 1/5 to be paid first, with the remaining 4/5 paid when there is actual progress, reducing the pressure of a one-time full payment.
Second, Hung Ming-hsin pointed out that in the past, if a case encountered problems, all participating banks would collectively compensate. This time, it is changed to "do it yourself, bear it yourself, with the National Development Fund assisting," which means no longer "eating from the big pot." Bank operators are very positive about this design, finding it reasonable and fair.
Hung Ming-hsin stated that currently, in addition to 8 state-owned banks, 7 private banks have responded, with CTBC Bank being particularly active. He hopes more private banks will participate in the future. Based on current progress, public and private banks' contributions are expected to exceed US$400 million.
Media were concerned about companies' willingness to invest in the US and whether the registration for the first phase's US$50 billion financing line has been recorded. Hung Ming-hsin said that according to Ministry of Economic Affairs data, the total amount of intended US investments is approximately US$35 billion. Actual financing is difficult to predict because manufacturers can also raise funds through bond issuance or other channels, and companies are still evaluating.
The Ministry of Economic Affairs recently inventoried the willingness of semiconductor, AI, and server-related supply chain manufacturers to invest in the US, inquiring with about 20 Taiwanese companies, including UMC, GlobalWafers, Wistron, Quanta, Compal, and Foxconn. The investment intentions proposed by these companies amount to approximately US$35 billion, which is expected to become the first batch of key US investment projects. (Editor: Pan Yi-ching) 1150511
Choose to stand with 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 videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.