cens logo

Taiwanese Delegation to N. America Shows Promise to Attract More Foreign Investments

Aug 31, 2015 | By CENS

Lien Yu-ping, Director General of the Department of Investment Services (DOIS) under the Ministry of Economic Affairs (MOEA), recently said that a Taiwanese delegation to attract investment from North America has shown promising results, having inked investment letters of intent (LOI) with various American and Canadian companies, including GE, S-Cubed, Alvogen, etc. She estimates that future investments from the potential investors might total about NT$11 billion (US$343.8 million) over the next three years.

In addition to signing the LOIs, GE of the U.S., a supplier of home appliances, airplane engines, healthcare equipment, electrical parts and financial services, also promised to increase its purchase value in Taiwan over the next three years to more than NT$27 billion (US$843.8 million), with major procurement categories such as aerospace equipment, medical equipment, etc.

Lien says that it's hard to estimate how much these new foreign investments in Taiwan will elevate the local gross domestic product (GDP); however, every NT$1 (US$0.03) of new investment used to contribute about NT$1 to NT$1.3 (US$0.03-US$0.04) to local GDP.

GE's Taiwanese operations comprise aerospace, medical equipment, energy, water disposal, water chemicals etc. businesses. The local branch previously invested NT$1.5 billion (US$50 million) to set up an airplane repair and maintenance venture in Taiwan with the local airline EVA Airways, and planned to designate the Taiwanese venture as the sole repair and maintenance base in Asia for the GEnx aircraft engines. GE's Taiwanese branch is also expected to continue seeking investment opportunities in local medical equipment and semiconductor packaging industries.

The Taiwanese delegation to North America, according to DOIS, also signed investment LOIs with some American semiconductor companies, including PraxAir (a top-three industrial-gas maker), Veeco, S-Cubed. PraxAir is expected to find investment opportunities in Taiwanese flat panel display (FPD) and medical equipment segments, the DOIS says.

Veeco holds more than 150 exclusive patents in thin film deposition-related fields, and more than 60 percent share of the global epitaxy equipment market. The company has been aggressively developing business in 3D semiconductor packaging technologies, and intends to set up a technical center in Taiwan. S-Cubed plans to find suitable business partners in Taiwan for setting up a semiconductor equipment R&D and manufacturing base on the island, DOIS says.

The DOIS adds that the American pharmaceutical maker Pfizer, which has investments in Taiwan, promised to expand the production capacity of a drug plant in Hsinchu, northern Taiwan, while continuing to carry out 40 to 50 clinical trial projects on the island. The American pharmaceutical maker Alvogen, in addition to its plan to pour NT$6.9 billion (US$230 million) into the local pharmaceutical company Lotus (to be completed this year), also plans to inject an additional NT$1 billion (US$33.3 million) to expand R&D and manufacturing scale at the Taiwanese company.

Beneficiaries
With GE promising to increase its future purchases of aviation products from Taiwan, some local companies are expected to be the first-tier beneficiaries, like Aerospace Industrial Development Corp. (AIDC), EVA Airways, etc. 

news-photoAIDC, the largest aircraft maker in Taiwan, has strong capability in aviation parts manufacturing, and is expected to benefit from GE's increasing procurement on the island. (photo from UDN)

AIDC, the largest aircraft maker in Taiwan, has already transformed into a private aviation company from a state-run enterprise. The company has been part of GE's aircraft-engine supply chain for years, providing many engine nacelles to the international customer. AIDC is also the hub of Taiwan's aviation central-satellite plant system, which, coupled with being one of GE aircraft engine's top-10 suppliers, helps to play a key role to fuel the development of the local aviation industry.

EVA Airways has been aggressively trying to win more aviation supply orders from international customers, by bidding for numerous procurement tenders issued by these airline companies. Just last year, Evergreen Aviation Technologies Corp. (EGAT), the aircraft repair and maintenance arm of EVA Airways, and GE Aviation set up a joint venture, the GE Evergreen Engine Services, to specialize in engine maintenance of commercial airliners, including Boeing's 787 Dreamliner.

GE Evergreen Engine Services is the first company in Asia to repair GE's GEnx engines, which are featured in the Dreamliner and the Boeing 747-8. With training and tooling provided by GE Aviation, GE Evergreen Engine Services have gained capacity to perform limited work on GEnx beginning in 2015 with full overhaul capability to follow by 2019. The GEnx family of engines is the fastest-selling engine in GE Aviation's history with more than 1,500 engines on order. The engine entered service in 2011 and powers both the Boeing 787 Dreamliner and the Boeing 747-8. GE Aviation has been increasing production of the engine for the last two years and delivered nearly 300 GEnx engines in 2014.

news-photoEVA Airways just finalized in late July with Boeing a firm order for five 777 freighters with GE engines. (photo from UDN)

Subsidies as incentive 
Thanks to the implementation of the new subsidies program for foreign investors in Taiwan by the MOEA, DOIS says that the recent investment-soliciting delegation to North America has successfully piqued interest among many foreign companies to plan to set up R&D centers on the island.

The new subsidies program offers a foreign company up to 50 percent of the investment cost to set up an R&D center when cooperating with Taiwanese supply chains. A foreign enterprise who sets up a joint venture in Taiwan with local partners will also be subsidized by the government for the venture's technical development in the first stage, as well as for the establishment of a local supply chain.

Despite turbulence such as the slowing economic growth in China that is impacting exports out of Taiwan, fluctuating foreign currency exchange rate, etc., DOIS says the recent delegation to North America received generally positive response from potential investors, some of whom have signed investment LOIs with the delegation while they closely observe the progress of Taiwan's signing of FTA (Free Trade Agreement) with other nations.

The executive ministry (Cabinet) of Taiwan recently also announced its agreement with the proposal from the National Development Fund to work with the private sector to set up a venture capital fund for acquisitions, which, according to DOIS director general Lien, is in tune to the global trend of mergers between enterprises and is expected to attract more foreign investors to Taiwan.

Compared to neighboring countries in Asia, Lien says, Taiwan has better legal systems, comprehensive supply chains, better protection of intellectual properties, etc., albeit lacking tax-reduction incentives.

DOIS says that the MOEA will arrange every year investment-soliciting delegations to North America, Europe and Japan, with such missions this year to North America and Japan having been completed. A delegation is scheduled to go to Europe early September, to call upon potential investors in Germany, Switzerland and Finland, with the focus on the telecom industry.


Industry In-Focus

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Industry Reports

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...


An Alliance Between Ford and VW Could be Announced as Early as Next Year</h2>

An Alliance Between Ford and VW Could be Announced as Early as Next Year

Dec 11, 2018

There is news of a far-reaching alliance between Ford Motor and Volkswagen, according to those familiar to the matter, reported CNBC. The two world’s largest automakers plan to announce the alliance next January, a partnership that would encompass sharing assembly plants in the U.S. to avoid new the wave of tariffs, joint marketing and distribution as well as product development, possibly on t...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...