December 21, 2005
On December 21, the Ministry of Economic Affairs held a business briefing where Jerry J. R. Ou, Director-General of the Industrial Development and Investment Center (
IDIC), presented a report on Japanese investment in Taiwan.
In his report, Director-General Ou noted that since 1950, Japan has been among one of the most important sources of foreign direct investment (FDI) and technology imported into Taiwan. Japan ranks number one in terms of number FDI projects in Taiwan, and number two in terms of total investment amount. Japanese investment in Taiwan over the past four decades can be broken down into three stages: The first phase of investment occurred from 1966-1977, when Taiwan became a major export base for Japan. The second phase, from 1986-1992, focused on electronics and electronic appliances. The third phase of development, which began in 1996 and continues today, is characterized by Japanese companies investing heavily in the computer and semi-conductor industry and LCD related companies, with the economy of Greater China as the business focus. Overall, Japan is one of the largest foreign investors in Taiwan's manufacturing and service industries (excluding the finance industry, in which the US ranks number one).
Citing research on the LCD industry by Japan's Nomura Research Institute, Director-General Ou pointed out that in around the year 2000 Japanese companies in Taiwan started to promote more "diversified" operations, and, in addition to production and sales, they began to engage in R & D, product planning and design, components supply (OEM). As a result, Taiwan became a base for product testing, after-sales service (A/S) and business support in the Asia Pacific region. Japanese businesses in Taiwan are also following suit from their clients by focusing their overseas investment on the Asian market.
In October 2005, the
MOEA established the
MOEA FDI Task Force in bid to effectively attract overseas Chinese and foreign investment in Taiwan. In view of the gap between Taiwan's industry chains and clusters, the predominant industries of various countries, and current foreign businesses in Taiwan, the Task Force aims to establish a systematic mechanism for business development and resource integration so as to improve efforts to attract overseas Chinese and foreign investment.
Director-General Ou also noted that Japan is very strong in the machine industry (the world's largest), as well as in automotive electronics and components, TFT-LCD equipment, semi-conductor equipment and materials, and gaming software. Taiwan is also dedicated to promoting these 5 key strategic industries, and will continue to promote Japanese investment in Taiwan.
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