In response to the U.S.-China trade war, the government launched three major action plans in 2019: the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan, the Action Plan for Accelerated Investment by Domestic Corporations, and the Action Plan for Accelerated Investment by Small and Medium-sized Enterprises (SMEs). Collectively referred to as the Three Major Programs for Investing in Taiwan, these initiatives aim to support Taiwanese businesses in accelerating the reshoring of production and adapting to supply chain restructuring by offering a range of incentives in areas such as financing, land access, water and electricity supply, taxation and the employment of foreign workers. In light of current geopolitical risks—including U.S. tariff policies, the Russia-Ukraine war and rising tensions in the Middle East—as well as to strengthen the nation's economic momentum and help enterprises respond to shifting conditions and domestic labor shortages, the Executive Yuan has extended the programs through 2027, under the name Three Major Programs for Investing in Taiwan 2.0. In addition to expanded eligibility and enhanced incentives, the updated programs will also actively promote AI and green transformation across industries to build a resilient and trusted industry chain, aiming to attract an additional NT$1.2 trillion (approximately US$40.8 billion) in investment and create 80,000 new Taiwanese jobs.
Key changes
■ Expanded eligibility: Expand program eligibility to include overseas Taiwanese businesses worldwide and foreign investing enterprises.
■ Broadened industry focus: Broaden industry focus to include not only the "five plus two" innovative industries and Six Core Strategic Industries, but also the Five Trusted Industry Sectors, the health industry and the service sector.
■ Evolving transformation: Continue to promote energy-saving transformation while intensifying efforts to help businesses adopt AI transformation.
■ Enhanced incentives: Add NT$720 billion (approx. US$24.5 billion) in new loans, and adjust banking service fee rates, applying different tiers of financial support for large enterprises—0.7% for loans under NT$2 billion (approx. US$68 million), 0.5% for loans from NT$2 billion up to NT$10 billion (approx. US$340 million), and 0.3% for loans exceeding NT$10 billion—while raising the rate to 1% for SMEs. Raise the cap on employing migrant workers by 10% under the existing system if local employees earn at least NT$36,300 (approx. US$1,234) per month, and increase it to 45% if they earn at least NT$38,200 (approx. US$1,299) per month.