Taipei, A total of 40 Taiwanese firms operating overseas have pledged to invest more than NT$200 billion (US$6.48 billion) back into the local market so far this year, responding to the government's call to shift some of their investments back to Taiwan, according to the Ministry of Economic Affairs (MOEA).
The MOEA said five Taiwanese firms operating overseas have submitted their investment applications worth about NT$68.5 billion on Friday, pushing up the total amount of investments pledged to NT$205.7 billion so far this year.
The investment pledged by the five investors has helped the government achieve its goal well ahead of schedule to encourage Taiwanese firms operating overseas to agree to invest NT$200 billion in Taiwan by 2019. Therefore, the MOEA has raised the target for this year to NT$250 billion.
The ministry launched incentives in January to encourage Taiwanese companies that have shifted their operations overseas in recent decades, especially to China, to return to the country to invest at a time of trade frictions between Washington and Beijing.
The trade dispute could seriously hurt Taiwanese firms manufacturing in China, because the products they export to the U.S. will face higher tariffs.
Taiwan's incentives include giving the returning companies easier access to bank loans and a simplified process of recruiting migrant workers, as well as services tailored to their needs.
The MOEA said the 40 Taiwanese firms are expected to create more than 21,200 new jobs for the local market.
Among the five firms whose investment plans were accepted by the MOEA on Friday, a "well-known" electronics maker, which asked not to be named, has pledged to pour NT$54.7 billion into Taiwan and the investment will be allocated in several industrial and science-based industrial parks, which will roll out key electronics components and green energy products, the ministry said.
The massive investment from the single electronics maker, which is also planning to develop artificial intelligence technology, is expected to add about 8,000 new jobs in Taiwan, the MOEA said.
The investment pledged by the electronics firm was the largest amount among the 40 planning to return to Taiwan so far this year, according to the MOEA.
The MOEA said Topkey Group, which started its carbon fibre production for tennis rackets and has rolled out components for the bicycle, medical care, aviation and medical care industries, has pledged to invest NT$6 billion in Taiwan by building a smart production plant in the Central Taiwan Science Park, which is expected to create more than 200 jobs.
Meanwhile, SDI Corp., which has extended its reach to the semiconductor industry from office equipment and metal item production, is planning to invest NT$2.526 billion, while communications device maker Wistron NeWeb Corp. has promised to invest NT$2.696 billion to expand production in the Southern Taiwan Science Park, the MOEA said.
It added that another 40 to 50 Taiwanese firms operating overseas have either expressed the willingness to shift part of their investments back to Taiwan or are evaluating the possibility of doing so.
Source: Focus Taiwan News Channel