1.Invest in TaiwanNorth Europe America West AsiaAsia Pacific Africa Central/SouthAmerica Taipei Economic & Cultural office in Tel Aviv Jerry ShyyAugust 24, 20101

2. Topics Taiwans Economic Development and Competitive Advantages Why Invest in Taiwan Inbound and Outbound Investment Foreign Direct Investment (FDI) in Taiwan Investment Incentives and Benefits Governments Strategies of Economic Reform, and Investment Opportunities 2010 Taiwan Business Alliance Conference Investment Service Contact 2 3. Taiwans Economic Development and Competitive Advantages 3 4. 1. Taiwans Major Economic IndicesLand Area 36,191 Sq km Population23.1 Million (2009)GDP 379 billion USD(2009)GDP per capita 16,423 USD (2009) GDP growth rate -1.9%(2009) Exports 203.67 billion USD(2009) Imports 174.37 billion USD(2009)Exchange rate1 USD: 31.8 TWD(2010.8) Foreign exchange reserves 360.1 billion USD (2010.5)Unemployment rate5.9%(2009) CPI (%)-0.9(2009)4 5. Taiwans Investment Environment and Competitive Advantages 2. Assessment of Taiwans Investment Environment by International InstitutionsInvestment Environment Risk IMD World Competitiveness Assessment Report (BERI)Yearbook4th in the World8th in the World 2010 2010 Global Competitiveness IndexInnovation Ranking World Economic Forum (WEF)(EIU)7th in the World12th in the World 2nd in Asia 4TH in Asia 20092009 5 6. Why Invest in Taiwan6 7. Why Invest in Taiwan 1. First in the Competitiveness of Industry Cluster Development2. Capacity of Industries to Innovate3. High-Quality R&D and International Marketing Specialists4. Highly Efficient and Integrated Global Logistics System5. Free Capital Market 7 8. 1. First in Competitiveness of Industry Cluster Development 2001~2009 Taiwans Global Ranking in State of Industry Cluster Index 1 1 122 22 3 5.75.5 5.55.55.55.45.45.4 2001- 2002-2003-2004-2005-2006- 2007- 2008- 20022003 2004 2005 2006 200720082009 Source: WEF, Global Competitiveness Report & Global Information Technology Report8 9. 1. First in Competitiveness of Industry Cluster DevelopmentStrong Industry ClustersNangang Software ParkIC Design, Digital Content, Biotech Hsinchu Science Park (HSP) (Hsinchu, Jhunan, Hsinchu Biomedical Park in Jhubei) IC Manufacturing, Optoelectronics, BiotechCentral Taiwan Science Park (CTSP),Taichung Precision Machinery ParkTainan Science Park, Liou-Ying Technology &Environment Industrial Park, Yongkang Semiconductors, Optoelectronics, Biotech, PrecisionDigital Creative Design Park MachineryOptoelectronics, Environmental ProtectionTechnology, Auto Parts, Precision Machinery Changhua Coastal IndustrialPark Kaohsiung Software Science Park, Metal, Recycling, Green Energy, Glass Kaohsiung Linhai Industrial Park, Tafa Industrial ParkPetrochemical, Iron/Steel, Yachts, Metal Processing, Precision Machinery, IC, Optoelectronics, Telecoms, Environmental Protection Technology9 10. 2. Capacity of Industries to Innovate(1) U.S. Patents Granted (2) R&D SpendingMillion%USD20,000.03.00% 79207779 7781 80007207 749118,000.02.62% 2.58%67302.45% 2.50% 70006676 16,000.0 2.38%59932.31% 16,552.9 18,117.2 2.18% 6000 14,000.02.08% 14,528.0 1.97%2.00% 5000 12,000.0 13,131.011,675.9 4000 10,000.01.50% 10,428.2 30009,336.7 8,000.0 8,833.5 2000 1.00% 6,000.0 1000 4,000.00.50% 02002 20032004 2005 2006 2007 2008 2009 2,000.00.00.00%2000 2001 2002 2003 2004 2005 2006 2007 U.S. Patents Granted R&D ExpendituresSource: U.S. Patent and Trademark OfficeR&D Expenditures as Percentage of GDP10 11. 3. High Quality R&D and International Marketing SpecialistsComparison of the number of R&D personnel per 1,000 employees: 9.4 per 1,000employees in Taiwan are engaged in R&D; 11.1 in Japan, 8.7 in Korea, 7.2 in Germany,5.8 in the UK, and 1.6 in ChinaTaiwans vast experience in world trade has created an environment with aninternational image, and a people with a global mindsetA wealth of managerial professionals knowledgeable in finance and international tradeWell-educated people possessing multilingual skills especially in English,Japanese, and Chinese11 Source: Info Times, 2008 12. 4. Highly Efficient and Integrated Global Logistics SystemTaiwan -- Situated in a strategic geographical location London New YorkAmsterdam 16 Hours ChicagoVancouverLuxembourg 8 HoursSeattleSan FranciscoRome Los Angeles 4 Hours Beijing SeoulNanjing 2 HoursShanghaiTAIPEITokyo XiamenHong Kong HonoluluGuangzhouHo-Chi-MinFrankfurtBangkokDelhiSingapore Abu Dhabi Sydney Auckland International (Direct/Indirect Flights from Taipei)Direct Flight Indirect FlightIntl Airport Direct Flights between Taiwan & China (from July 2008) 12 13. 4. Highly Efficient and Integrated Global Logistics System Weekly direct flights to 33 major cities in ChinaBeijing, Shanghai, Guangzhou, Xiamen, Nanjing, Chengdu, Chongqing, Hangzhou, Dalian, Guilin, Shenzhen, Wuhan, Fuzhou, Qingdao, Changsha, Haikou, Kunming, Xian, Tianjin, Zhengzhou, Haerbin, Guiyang, Nanchang, Hefei, Ningbo, Jinan, Shenyangetc.Xiamen Cross-strait direct two-way travel improves shipment delivery time and lowers freight and transportation costsAverage flying time from Taoyuan International Airport to Shanghai is only 1.3 hours Taiwans maritime navigation to China can save 16~27 hours and cut costs by 15%~30% in cost Taiwans close proximity to China can boost industry competitiveness and increase exports Taiwan can also serve as an ideal regional hub for global logistics13 Division of labor across the Taiwan straits is now even more convenient and accessible 14. 5. Free Capital Market 1. Stock MarketTaiwan Stock Exchange(Dec. 2009 )Listed Companies 741 Market CapitalizationUS$191.18 Billion Over-the-Counter/Venture Capital (Dec. 2009) Listed Companies on OTC Market 546Listed Companies on OTC-Emerging223 Market Listed Venture Capital Companies 183 Sources: Taiwan Stock Exchange Corp.; FSC, Executive Yuan; Taiwan Venture Capital Association; GreTai Securities Market14 15. 5. Free Capital Market 2. Banks Statistics(Dec. 2009)Total No. of Domestic Banks/Branches 373,264Total No. of Foreign Banks/Branches *32141* Citibank, HSBC, DBS, Mizuho, JP Morgan Chase, Bangkok Bank, UBS AG, Bank of America, ABN AMRO, Standard Chartered, Deutsche Bank, BNP Paribas, Barclays, etc. Strategic Alliances with Major International BanksForeign BankDomestic Institution Shinsei BankJih Sun Financial Holding Co. Standard Chartered Bank Hsinchu International BankHSBC Far Eastern International Bank GE Consumer Finance Cosmos Bank 15 Source: FSC, Executive Yuan 16. Inbound and Outbound Investment 16 17. Inbound Investment1. Trends in Inbound Investment Foreign investment in Taiwan increased rapidly in 2006, 2007, but dropped to US$4.8billion in 2009 due to the global economic recession.Investment Amount in Billion USDInvestment Cases 182,500 Invest. Amt.15.361613.9714Invest. Cases 2,2671,8452,0001,71112 1,8461,500101,1781,1421,1491,0781,131 88.235.131,000 63.95 4.803.273.584.23 4500 2 00 20012002 2003 20042005 20062007 2008 2009 YearSource: Investment Commission, MOEA17 18. Inbound Investment2. Major Overseas Investors by CountryFrom Jan 1952 to Dec 2009, the total number of inbound investments reached 25,866cases, with a value of US$107.11 billion. Jan ~ Dec 2009 Jan 1952 ~ Dec 2009 USA Others 20.56%25.54%O her s t19. 89% USA 34. 70%JapanHolland5. 34% 16.45% Singapore 5.78%UKJapan5. 56% 15.46%British Caribbean Islands16.21%Br i t i sh Car i bbeanHol l andI sl ands 19. 68% 14. 82% 18 Source: Investment Commission, MOEA 19. Inbound Investment 3. Major Invested IndustriesJan ~ Dec 2009 Jan 1952 ~ Dec 2009 Finance &Others Finance & Insurance Insurance26.26% 43.58% Computers, 19.56% Others Electronics, Optical 44.31% ManufacturingElectronic 4.90% Components 15.10% Retail & Wholesale Retail & Wholesale Computers, 8.91%7.39% Electronics, Financial Holding Financial Holding 6.09% Optical Electronic Components9.56%Manufacturing8.31% 6.04%Source: Investment Commission, MOEA19 20. Outbound Investment 1. Trends in Outbound Investment From 2001 to 2005, outbound investment declined; however, it increased gradually from 2006 onwards. The total amount of outbound investment in 2007 reached US$6.47 billion; however, it fell back in 2009 with an amount of US$3 billion due to the global economic recession.Investment Amount in Billion USDInvestment Cases 50Invest. Amt. 1,60045 1,38743.92 Invest. Cases 1,40040 1,20035 925 1,000302571480020 6006584641538752140010 478 2516.47 54.32 4.47 3.00 2003.373.973.382.45 0 0 20 Source: Investment Commission, MOEA 200120022003 20042005 200620072008 2009 Year 21. Outbound Investment 2. Major Invested Markets by CountryBased on statistics by DOIS, MOEA, from 1952 to December 2009 a total of 12,602outbound investment cases were generated, amounting to almost US$62.774 billion invalue.Jan ~ Dec 2009Jan 1952 ~ Dec 2009 British British Caribbean IslandsOthers CaribbeanOthers36.74%15.81%Islands26.96%37.76% Hong Kong7.55% USA Bermuda 8.95%4.20%Vietnam Hong Kong Singapore 5.14% 14.31%Singapore15.62%USA 9.10% 17.85%Source: Investment Commission, MOEA 21 22. Outbound Investment3. Major Invested Industries Jan ~ Dec 2009Jan 1952 ~ Dec 2009 OthersFinance &Finance & Insurance Others 22.04% Insurance32.72%30.85% 33.95%Retail & Wholesale 7.36% Computer, Electronics, Optical Manufacturing Financial Holding 5%7.58% ElectronicFinancial Holding Metal Electronic ComponentsRetail & Wholesale 11.65% ManufacturingComponents 20.22% 7.64%10.09% 11% Source: Investment Commission, MOEA22 23. Outbound Investment in China 1. Investment TrendFrom 2000 to 2004, Taiwanese investment in China showed a rapid increase, before declining in 2005.However, in 2007, Taiwanese investments peaked at US$9.97 billion, and then slightly dropped in 2008 toUS$9.84 billion, a decline of 1%. It dropped to US$6.06 billion in 2009 due to the global economic recession.2,500Investment Amount in Billion USD Invest. Investment Cases B Invest. Amt. Cases2,004 9.849.97 2,000 1,8371,490 1,5006.941,297 1,1866.01 7.64 6.061,090 1,0004.6 3.869962.78 482 500 24902001 20022003 2004 20052006 20072008200923Source: Investment Commission, MOEA 24. Outbound Investment in China2. Outbound Investment in China by Region A total of 37,771 cases of Taiwanese investment in China were recorded from January of 1952 until December of 2009, reaching an amount of US$82.7 billion.Jan ~ Dec 2009Jan 1952 ~ Dec 2009Others13.68% Jiangsu Others Zhejiang 17.15%33.26% 6.78%Zhejiang Jiangsu5.72%39.55%Fujian 7.41%Fujian7.56% Shanghai ShanghaiGuangdong15.94%14. 86%14.07% Guangdong24.01% Source: Investment Commission, MOEA 24 25. Outbound Investment in China 3. Major Invested Industries Jan ~ Dec 2009Jan 1952 ~ Dec 2009Electronic ComponentsElectronic 19.19%ComponentsOthers16.43%42.68% Computers,Others Computers, 47.24%Electronics,Optical Mfg Electronics, Optical 15.71% Manufacturing Electrical 16.68%Equipment MfgPlastics Metal 9.39% Retail & Wholesale MetalManufacturing Manufacturing Electrical 5.10% 6.14% 4.67%ManufacturingMfg Facilities 6.81%9.97% Source: Investment Commission, MOEA 25 26. Foreign Direct Investment (FDI) in Taiwan 26 27. Foreign Direct Investment (FDI) in Taiwan R&D Centers: About 30 multinational corporations have established 43 R&D centers on the island Global Logistics Centers: About 13 multinational corporations have established global logistics centers in Taiwan27 28. Investment Incentives and Benefits28 29. Protection of Foreign Investors Rights Ownership Rights May have 100% ownership (excluding some types of businessesrequiring special permission) Freedom from Expropriation Investments by foreigners or overseas Chinese may not be expropriatedwithin 20 years so long as the foreigners hold 45% or more of the equityin the invested enterprises Remittance of Funds (the following funds may be freely remitted out of Taiwan) Interest or profit on investment Permitted sale, withdrawal, or reduction of investment Capital gains29 30. Tax IncentivesIncentives for R&DA company incorporated according to the Taiwan Companies Actmay be entitled to a tax credit of up to 15% of the R&D investmentagainst its income tax liability. The credit is limited to 30% of theincome tax payable. The competent authority and the Ministry ofFinance will announce the qualified scope, application term,application procedure, governing authority, credit rate and otherrelated details. This incentive will be effective from January 1,2010 to December 31, 2019. Other tax incentives Biotechnology and New Pharmaceutical Industry Private Investment in Infrastructure Projects Free Trade Zones / Airport Park Acquisition of Technology for Operation and Production Tax Incentives for Company Reorganization Indirect Tax Incentives for Science Parks, Export Processing Zones, Bonded Factories, and Bonded Warehouses Source: Industrial Development Bureau, MOEA30 31. Land Procurement006688 Extending and expanding the 006688 preferential land rentalMeasure incentive789 A 10%~30% discount on the sale of land in industrial zonesProgram under development, effective from October 1998 to December31, 2010 Release of Taisugar releases lands for use by industries through rental/Landleasing or surface rights agreements, with a maximum by Taisugarguaranteed lease term of 50 years Source: Industrial Development Bureau, MOEA 31 32. Governments Strategies of Economic Reform, andInvestment Opportunities 32 33. Governments Strategies of Economic Reform, and Investment Opportunities 1.i-Taiwan 12 Projects2.Six Emerging Industries A. Biotechnology B. Tourism C. Green Energy D. Healthcare E. High-end Agriculture F. Cultural and Creative Industries 33 34. i-Taiwan 12 Projects1. Goals Transportation Network- A fast and convenient islandwide 12 major publictransportation network construction projects to - Kaohsiung Port-City regenerate TaiwansRegeneration- Taoyuan International Air City economic miracle Industrial Development Estimated investment - Central Region New High -Tech amount of NT$4 trillionIndustrial Clusters Program (about US$12.5 billion) i-Taiwan - Intelligent Taiwan- Industrial Innovation Corridors from 2008~2016 12 Projects Urban and Rural Development- Urban and Industrial ParkRegeneration- Rural RegenerationEnvironmental Protection- Coastal Regeneration- Green Forestation- Flood Prevention and WaterManagement- Sewer Construction Source: http://ppp.pcc.gov.tw/pcc_site/files/5_1.pdf34 35. i-Taiwan 12 Projects2. Vision and TargetsUnit: NT$i-Taiwan 12 Projects Total Budget 2009 Budget 1.Convenient1.45 Trillion65.3 BillionGoalsIslandwide 2.Kaohsiung Free 57.7 Billion7 Billion Trade Zone & Eco-portExpand domestic demand3.Taichung Asia-PacificImprove investment50 Billion 200 Million Sea/Air Logistics Hub environment 4.Taoyuan Intl Air City 67 Billion1.4 BillionBoost economic strengthUpgrade quality of life 5.Intelligent Taiwan 225 Billion24.2 Billion 6.Industrial Innovation115 Billion9.9 Billion Corridors 7.Urban & Industrial 57 Billion3.1 Billion Zone Renewal 8.Rural Regeneration 150 Billion2.3 Billion9.Coastal Regeneration20 Billion3.1 BillionGovt. investment: About US$8.3 billion10.Green Forestation30 Billion2.7 BillionPrivate investment: 11.Flood Prevention &186 Billion37.9 Billion About US$4.2 billionWater Management 12.Sewer Construction240 Billion 13 BillionTotal2.65 Trillion 170.3 Billion*Additional NT$200 million allocated to other govt. projects 35 36. i-Taiwan 12 Projects 3. Investment Opportunities On July 15, 2009, Taiwan officially becomes the 41st WTO GPA (Government Procurement Agreement) member Tremendous opportunities are available for foreign investors, including government procurement projects as well as public private participation in construction works Useful links relating to Taiwans investment opportunities: Public Construction Commission, Executive Yuanhttp://www.pcc.gov.tw/pccap2/TMPLfronted/ChtIndex.do?site=002 Promotion of Private Participationhttp://ppp.pcc.gov.tw/pcc_site/ Government Procurement Agreement (GPA)http://www.pcc.gov.tw/pccap2/TMPLfronted/ChtIndex.do?site=00236 37. Six Emerging IndustriesBiotechHigh-end Agriculture Tourism Six EmergingCulture &Industries Creation Green Healthcare Energy37 2010/9/14 38. Six Emerging Industries A. Biotechnology 38 39. Taiwans Biotechnology IndustryBiotech IndustryMedical Devices In 2008, production value was NT$22.6 billion; food In 2008, production value was NT$51.5 billion,/biotech, Chinese herbal medicine, and agriculturalwith medical products for household use rankingbiotech comprised most firms. first. Large medical equipment used by hospitals occupied a fairly low ratio of only 0.73%. Taiwanholds only 1% of the global market share formedical devices. 8.2% Biotech 18.4% Large Med Food biotech/ Disposable9.5% Equipment Regenerative Med Chinese herbal medicineMed (0.7%)SuppliesSource: ITIS (20.4%)Medical Agri-biotech Household TestingChemical Hospital Medical/ Med DevicesDevices & (56.8%) 14.4% BiotechEquipment22% (22.1%) 11.8% Source: IEK39 Source: Executive Yuan 40. Taiwans Biotechnology Industry Biotech InvestmentIn Hundred Million NT$ Since a record breaking NT$20 billion in investments100 was made in 2001, investments generated annually 80 were over NT$20 billion. 604020 Major areas of investment were pharmaceutical,0medicines and the development of new drugs,New PharmaHealth Medical Biotech Agri- TestEnvtl. Drug Foods Devices Service Biotech Reagent Biotechmedical devices, health food products.200626.6 51.5464.4634.49 15.24 12.56 3.21.952007 70.4165.8 4.2 57.5938.1 30.48 3.320200827.5 8530 3517.5 52.52.5 0 In Hundred Million NT$ 300 270250 250 234250215203 213210 200 150121 100 500 2000 200120022003 20042005 20062007 2008 40 Source: Biotechnology and Pharmaceutical Industries Program Office, MOEA 41. Taiwans Biotechnology IndustryStatus of Taiwans Biotech IndustryEncouraging the Creation of New Value-Added Drugs and Development of High-End Medical Devices In June 2001, listing rules were relaxed for biotech companies, and by the end of 2008, 38 companies from the biotech/medical device industries had been listed on Taiwans stock and OTC market.The Biotechnology Takeoff Package was announced in 2008. This package consists of 4 major areas: Strengthening of the Industrial Value Chain & Pre-Clinical Development in the Commercialization Process Establishment of a Biotechnology Venture Capital Fund Creation of Biotech Incubation Centers Formation of a Taiwan Food & Drug Administration Companies such as AbGenomics, Panion & BF Biotech, and Medigen Biotech have gradually developed partnerships with multinational pharmaceutical corporations through close collaboration and alliances with them. ApexBio, Bioptik Technology, Health & Life Co., and other Taiwanese firms hold an important position in the global marketfor blood glucose meters.Source: Executive Yuan 41 42. B. Tourism42 43. Tourism IndustryGoals 2010: To attract 4.5 million tourists to Taiwan 2012: To attract 5.5 million tourists to Taiwan and generate NT$550 billion in revenue, create 400,000 jobs, attract NT$200 billion in private investments, and bring at least 10 major international hotel chains into TaiwanCreate BusinessCreate NT$550 billion worth of business opportunitiesOpportunitiesNT$300 billion in increased spending by foreign tourists (increase from 45% to 55% of total tourist revenue)NT$250 billion in increased spending by domestictravelers Generate Job Create 400,000 jobs OpportunitiesDirect employment: 130,000 jobsIndirect employment: 270,000 jobs Attract Private Attract NT$200 billion in private investment InvestmentAttract InternationalAttract at least 10 major international hotel chainsHotel Operators to Taiwan43 Source: Executive Yuan 44. Tourism Industry Action ProgramsRegional Development Best of Taiwan International Scenic Spots Flagship North:Living TaiwanBest of Taiwan Action Program Offshore Islands: Uniquely Island TaiwanFoundation Building Action ProgramValue Enhancement PlanFoundation BuildingCenter: Industry Restructuring Industrial Taiwan Cultivating Elites East: Relaxing TaiwanValue Enhancement South: Market DevelopmentHistorical Taiwan Quality Enhancement Hotel Evaluation Non-government Certification Program Whole Island:Multifaceted Taiwan 44 Source: Executive Yuan 45. Tourism Industry Actual and Forecast Foreign Arrivals in Taiwan, 2008-2012Unit: 1,000 Country/Region20082009 2010 20112012 Japan 1,087 1,090 1,100 1,200 1,260 Korea 252 220240270290 China 329 700 1,000 1,200 1,500HKG/Singapore/ 980 980 1,020 1,100 1,180 MalaysiaEurope/US/New 655 610640690720 Zealand/AustraliaOthers542 500500540550Total3,845 4,100 4,500 5,000 5,50045 Source; Executive Yuan 46. Tourism Industry Funding PlanSource: Tourism Development Fund (60% from airport service fees, plus allocationfrom the National Treasury) Unit: 100 Million NT$Action Programs 200920102011 2012 TotalA. Best of Taiwan Action Program 1. Flagship Attractions 2. International Scenic Spots B. Foundation Building Action Program 1. Industry Restructure 2. Develop Elites C. Value Enhancement (Tourism Value Added) 1. Market Development 2. Quality Enhancement Total46 Source: Executive Yuan 47. C. Green Energy 47 48. Green Energy IndustryTake-Off Program for the Green Energy IndustryTechnology BreakthroughKey IndustriesPhotovoltaic LED Illumination Key5 MajorShaping InvestmentsDrivingtheForcesEnvironment Green Energy Industry Potential Industries Re-exporting ExpandingWind power generation,Domestic biofuels, hydrogen energy and Demandfuel cells, energy information andcommunication, electric vehiclesGovt. investing NT$25 billion over a 5-year period to promote the industry and provide subsidies; also allocating NT$20 billion for R&D; by 2012, production is projected to reach NT$475.2 billion48Source: http://www.ey.gov.tw/policy/3/index.html 49. Green Energy IndustryPhotovoltaic Industry: Vision and Development The worlds 10 largest solar cell makers (by revenue): 2008 CompanyRank1QCells (Germany) Total Production(Billion NT$)Production: NT$450 billion 2First Solar (US) Workforce: 45,000Market Position 3 Suntech (China)4500 4 Sharp (Japan) Up-stream: 7 silicone wafer makers Effective Mid-stream: 45 battery module makersStrategiesDevelop Taiwan into one 5 JA Solar (China) Down-stream: 29 application system of the worlds top 3makersproducers of solar energy 6 Kyocera (Japan) Production value in 2008 was batteries 7 Yingli (China) NT$101.1 billion Solar cell production is 4th biggest in 8 Motech (Taiwan)the world; Taiwans Motech is the 8thlargest producer in the world Establish a cluster and/or 9SunPower (US) Solar cell comprise 98% of exports,global hub for PVs10Sanyo (Japan) with Europe as the major market 2300Source: PV News, PhotonInternational, IEK (2009/04) Occupation of astrategic or key positionin global PV technology1011 NOW 20122007 20082015 Year49 Source: MOEA 50. Green Energy IndustryLED Lighting and Optoelectronics: Vision and DevelopmentMarket PositionProduction: NT$540 billion Total Production Workforce: 54,000 (Billion NT$) Upstream: 50 lighting makers Midstream: 50 module makers5400Effective Downstream: Over 100 firms inlighting applicationsStrategies Production of LEDs 1st in the world,2nd in output value (16%); TaiwansEpistar is the worlds biggestproducer of LED lightingProduction base for high-value Output value of back modules is 1stLED lightingin the world Taiwan accounts for 72% of globalLED lighting exports with China asthe major marketDevelopment into the worldslargest producer of LED lighting materials & modules16004602008NOW 201220072015Year 50 Source: MOEA 51. Green Energy Industry Clean Energy Industry: Vision and Development Total Production(Billion NT$)Market Position Production: NT$168 billion Output value:Workforce: 16,800 Hydrogen energy & fuel cells: NT$400 million1680 Wind power: NT$3.5 billion Biomass fuel: NT$1 billionWorld production and Energy info & com: NT$8 billionEffectiveassembly base for fuel cell Electric vehicles: NT$280 million StrategiessystemsOne of the worlds largest suppliers of wind power Competitive Positiongenerators Hydrogen energy & fuel cells: Core componentsEstablishment of a self- Wind power: Integrated systems and supply and marketing technologysystem for biomass fuel Biomass fuel: New source of technology Energy info & com: Integrated systems Electric vehicles: Safe, high-energy-densityAn ideal international supply 562 lithium batteriessystem for energy information and communications A major production basefor electric vehicles in the 132Asia PacificNOW2012 2007 2008 2015Year51 Source: MOEA 52. D. Healthcare 52 53. Healthcare Industry Healthcare Value- Added Platinum Medical Care Program Long-Term Care Govt. input of NT$86.4 billion over next 3 years to boost annual productionServiceto NT$346.4 billion IndustryHealthcareIndustry Value- MfgWellness & health AddedIndustrymaintenance Industry Highly IntegratedIntelligent medical care services Bio-pharmaceuticalCross-border medicalIndustry servicesNational health safety 53 54. Healthcare IndustryRange of Healthcare Services Upgrading of Core Technology Intelligent MedicalCare ServicesBiopharmaceutical Industry Internationalization of healthcareCurrent Healthcare System Wellness & HealthLong-Term Care MaintenanceExpansion of Healthcare Industry Territory54 55. Healthcare IndustryAdvantages and Opportunities AdvantagesOpportunities Comprehensive healthcare Increase of healthcare services due System; highly efficient, convenient, easily accessible to aging society and high number of senior citizensHigh standards, relatively lowTrend towards internationalizing cost compared to Europe,healthcare and promoting medicalAmerica, and Japan care tourism Integration of Taiwans healthcare Taiwans strong IT capabilitieswith medical devices and healthinformation technology 55 Source: Department of Health 56. Healthcare Industry Expected Results Provision of comprehensive medical services to boost healthEnhancementCreation of a Govt. allocation ofof Quality ofHealthcare NT$86.4 billion over the Upgrading of healthcareEnvironment service qualityLife next 4 years General Forecast Generation of 310,000 jobs Boosting of production by Revitalization Stimulation of Direct employment: of the IndustryEmployment NT$346.4 billion by 2012240,000 Indirect employment: 70,000Source: Department of Health56 57. E. High-end Agriculture 57 58. High-end Agriculture Government Investment Unit: NTD BillionYear2009 201020112012TotalIndustry * HealthyAgriculture AgriculturalExcellenceLOHAS Total * Healthy Agriculture is used mainly for system development and product sales management.58 Source: Executive Yuan 59. High-end Agriculture Development and Strategies and Measures Strategies MeasuresRegulatory Authority To develop a lowland forest recreational area and create an energy-saving low-carbon high-quality ecological park COA To develop and promote recreational agriculture areas and sophisticated recreational fishingCOAports, as well as fishing villagesEstablishment To promote a demonstration recreational agricultural area and establish a service-quality COA of New accreditation system to boost the overall quality of rural travel servicesCOA Business Model To promote the Rural Regeneration program (Farm Village Regeneration), planning the COAconstruction of an attractive farm village To join with Chinese tourists in promoting the concept of placing an order in Taiwan, takingdelivery in China To study and develop techniques of cooling and preservation for retaining freshness; toDevelopment extend the period for sampling of excellent agricultural products COA To utilize traditional methods of making wine and combining them with agricultural biotech to of New COAproduce uniquely special wine, commercializing another product segmentAgriculturalCOA To develop excellent bamboo products and expand applications in various industries such as Technologysemiconductors, medicine, and energy To develop different agricultural tours with various themes including health and wellness,dynamic workshops that provide positive learning experiences, fine foods and delicacies, andother interesting activities; and promote farmstays and airport & farm itineraries to develop COAthe international market; develop the international marketsNew MarketCOADevelopment To develop and promote more locality-based specialty foods and products in coordinationwith agri-tourism and meet consumers demands COA To develop the market for special ceremonial occasions such as engagements, one-monthold celebrations, corporate image events, and others.59Source: Executive Yuan 60. High-end Agriculture Expected Results Total production value is projected to reach NT$158.9 billion by 2012, and the workforce to be 31,000 Industries with 100% growth: organic farming, product traceability, agricultural biotechnology, orchids, groupers, plant nursery, ornamental fish, breeding livestock and poultry, agricultural tourism, quality agricultural products (GAP- and CAS-standard products) Source: Executive Yuan60 61. F. Cultural and CreativeIndustries61 62. Cultural and Creative Industries Infusion ofSix Flagship IndustriesFundsAssistance inEnviron- Market Television Industrial mental Devt.R&DPrepara- Film/Cinema tionPopular MusicDigital ContentManpower Industrial Design TrainingClustering Arts/Handicrafts& Matching EffectGovt. to invest NT$20 billion up to 2014Six flagship industries projected to reach NT$1 trillion scale within 5 years62Source: Executive Yuan 63. The Development of Cultural and Creative Industries Strategy MeasuresRegulatory Authorities There are 5 major strategies for environmentalpreparation: the infusion of funds, assistance orfacilitation in industrial R&D, market development, CCAmanpower matching and training, and intensifying theindustrial clustering effect ~ all designed to build aEnvironmental friendly environment for the development of the Preparationindustries. The government further supports theindustries by strengthening the protection of intellectualproperty rights (IPRs), building up a mechanism for thevaluation of intangible assets, and establishing an agentlicensing system in order to enhance Taiwansinternational image as well as value for the industry.MOEA Television, Film/Cinema, Popular Music, GIO 6 Flagship ProjectsDigital Content, Design, Arts/HandicraftsCCASource: Executive Yuan63 64. Cultural and Creative Industries Expected Results Development of Taiwan into an Asia-Pacific hub for cultural and creative industriesElevation of spending on arts and culturefrom 13% to 15% of total household spendingSix flagship industries expected to achieve total production value of NT$1 trillion within 5 years, and to generate 200,000 jobs Entry of over 800 creations or inventions in international contests, generation of over NT$6 billion through global partnerships, and more than 270 overseas cases Increase of over 20% in production value of the film industry, heightening ofprofit from overseas markets more than 3 fold64 Source: Executive Yuan 65. 2010 Taiwan Business Alliance Conference II Organizer : Ministry Of Economic Affairs, Taiwan ROCCo-organizer : DIGITIMES 65 66. Events and ActivitiesEvent2010 Taiwan Business Alliance Conference IINew Era, New Opportunities Theme September 21, 2010 Taipei International Convention Center (TICC), Date/Venue Room 10166 67. Date: September 21, 2010 Venue: Taipei International Convention Center (TICC), Room 101 Participants:- Foreign enterprises- Overseas Taiwanese firms- Mainland Chinese business Estimated no. of participants: 500 or more Language(s): English (simultaneous translation available for native Chinese and Japanese speakers) Details:-Letter of Intent signing ceremony with foreign enterprises-Keynote Speech: Directions of Company Deployment Following ECFA Signing-Panel Discussions: Taiwan in the Asia-Pacific Market Following ECFA : Opportunities and Challenges 67 68. Investment Service Contact Taipei Economic & Cultural office in Tel Aviv Tel:03-6074786 ecoteco@teco.org.il http://investintaiwan.nat.gov.tw 68 69. End of Presentation Thank You for Your Attention69