The U.S.-China trade war has triggered a global supply chain reshuffle, resulting in an unprecedented wave of Taiwanese businesses returning to invest domestically. As of the end of October, 151 companies have returned, bringing over NT$620 billion in total investment. Thirty years ago, businesses sought lower costs, expanding operations to China and Southeast Asia. Today, these businesses are leveraging smart technology to upgrade and establish stronger roots in Taiwan.
ITRI has developed the "Taiwanese Business Reinvestment Innovation R&D Platform" to help these companies enhance value through technological innovation and transformation.
Taiwan: A Top-Ranked Investment Environment
According to the Business Environment Risk Intelligence (BERI) "Investment Risk Assessment Report," Taiwan ranks fourth globally for investment attractiveness, underscoring its position as a prime international production base and a hub for industrial transformation. The convergence of objective and subjective factors has fueled this wave of reinvestment by Taiwanese businesses.
This influx of capital presents Taiwan with a dual opportunity: to catalyze industrial transformation and boost economic growth. In line with the Ministry of Economic Affairs' "Taiwanese Business Reinvestment Program," ITRI's platform provides comprehensive solutions to help returning businesses adopt intelligent manufacturing, enhance competitiveness, and achieve sustainable development.
Combining Taiwan's Five Pillars of Industrial Strength
At the platform's launch event, Vice Minister of Economic Affairs Lin Chuan-neng emphasized five key soft strengths for industrial upgrading: technology, patents, talent, innovation, and platforms. "Taiwan has them all," Lin stated, adding that the platform acts as a "direct train" to address business needs effectively and efficiently.
Lin highlighted how ITRI integrates these strengths to foster a robust environment for transformation, connecting capital and technology markets and enhancing Taiwan's global competitiveness. Over the next 5–10 years, Taiwan aims to establish a national brand in technological innovation, paving the way for its industries to excel across Asia, the U.S., and globally.
Bridging Capital and Technology Markets
"The U.S.-China trade conflict has created operational and export challenges for many industries, but it also presents a major opportunity for Taiwan," explained ITRI President Liu Wen-hsiung. He identified three primary demands of returning Taiwanese businesses:
- Risk diversification and establishing global technological platforms.
- Accelerating smart manufacturing through automation and high-value-added production.
- Developing cutting-edge technologies like AI and 5G.
To meet these demands, ITRI's platform focuses on fostering innovation, promoting digital transformation, and nurturing talent. Services include on-site diagnostics, tailored technical solutions, and post-service follow-up—delivering comprehensive support for businesses aiming to reinvest in Taiwan.
Liu outlined three key strategies for aligning capital and technology markets:
- Facilitating intangible asset financing by enabling startups to secure funding using patents.
- Partnering with private equity funds to drive technology-driven transformation.
- Using reinvested capital to elevate business value and accelerate industrial upgrading.
Citing Silicon Valley as an example, Liu emphasized the importance of connecting financial and technological markets to support the growth of small and medium enterprises (SMEs). By guiding reinvested funds to suitable industries, ITRI aims to create sustainable engines for Taiwan's economic development.
Real Support for Taiwanese Business Transformation
The Ministry of Economic Affairs' reinvestment program has successfully attracted Taiwanese businesses, while ITRI's platform provides the necessary resources to ensure transformative success. Companies from diverse sectors—including semiconductors, electronics, lighting, ceramics, and medical care—are already leveraging the platform for growth.
Case Study: Ho Hsin Optoelectronics – Transforming Through Innovation
"I often encourage Taiwanese businesses to return home for transformation," says Ho Hsin Optoelectronics Chairman Yeh Lu-song. "Upgrading in China isn't feasible, and competing on price alone in Southeast Asia isn’t sustainable."
After observing market saturation in traditional lighting, Yeh established Ho Hsin Optoelectronics in Taiwan in 2017, creating a research center with ITRI's open lab. With ITRI's support, the company developed innovative visible light communication (VLC) and healthcare LED lighting products, advancing into high-tech fields like energy efficiency, 5G, and AIoT.
Yeh believes leveraging Taiwan's local talent and resources is key to creating high-value products and a brighter future for the nation. "Returning to Taiwan for transformation is not only a wise choice for businesses but also a step toward building a better Taiwan."