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Cabinet approves plan to foster startups, IoT industry development

02/22/2024 10:20 PM
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An aerial view of Hsinchu Science Park's Longtan site in Taoyuan. Source: Hsinchu Science Park website
An aerial view of Hsinchu Science Park's Longtan site in Taoyuan. Source: Hsinchu Science Park website

Taipei, Feb. 22 (CNA) The Cabinet on Thursday approved a new four-year implementation phase of its Asia Silicon Valley Development Plan to expand the development of the Internet of Things (IoT) industry and build a comprehensive ecosystem for innovative startups.

The National Development Council (NDC)-proposed Asia Silicon Valley Development Plan 3.0 will commence next year, with the government allocating a budget of NT$11.73 billion (US$371.98 million) for the program, NDC deputy head Kao Shien-quey (高仙桂) said.

The focus of the 3.0 plan is to develop generative AI and miniaturization, 5G, satellite networking, and the use of the IoT to strengthen digital and net-zero transformations.

It will also continue to inject new investment momentum, and study new potential tax incentives for and encourage private and enterprise investment in startups, the NDC said.

The 3.0 plan looks to help boost the output value of Taiwan's IoT industry to account for 5.2 percent of the global IoT market, to assist startups in raising US$5 billion, and to cultivate 100 IoT ventures, according to the NDC.

After the government began implementing the Asia Silicon Valley Development Plan in 2016, the output value of Taiwan's IoT industry grew from NT$890 billion in 2016 to NT$1.17 trillion in 2018, surpassing the NT$1 trillion mark for the first time, before it breached the NT$2 trillion mark in 2022, according to the NDC.

The plan has attracted global digital giants, including Microsoft, Google, and Cisco to come to Taiwan and establish R&D or innovation centers, it said.

Noting that Taiwan's startup ecosystem has progressed significantly, the NDC said the number of startups has grown to more than 7,478 from 3,157 in 2015 and that overall investment has increased to US$2.22 billion from US$840 million in 2015.

Meanwhile, to ensure the semiconductor industry keeps its roots in Taiwan and to encourage the development of emerging industries, the Cabinet on Thursday also approved a four-year plan to establish a "Greater Silicon Valley" covering Taoyuan, Hsinchu and Miaoli from 2024-2027 in a bid to connect industrial clusters in the region, Kao said.

The plan aims to help drive Taiwan's industrial output value to NT$6 trillion and to create 140,000 jobs.

(By Lai Yu-chen and Evelyn Kao)

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