TAIPEI (Taiwan News) — National Development Council Minister Liu Chin-ching (劉鏡清) opened Taiwan’s second overseas startup hub in Palo Alto, California, on Tuesday.

Liu in a speech said the Silicon Valley hub has two main purposes, per CNA. Firstly, Taiwan has cultivated several startups, and the hub will serve as a way to highlight these companies.

Secondly, many Silicon Valley companies are seeking opportunities in Taiwan. The hub will connect investors and research institutions with Taiwanese firms.

Liu added that the goal for this year is for the hub to support 100 startups and attract at least 2,000 professionals to Taiwan. Furthermore, Taiwan’s venture capital is expected to grow by 20% annually, reaching US$5 billion (NT$165 billion) in 2027, per Liberty Times.

Startup Ubestream CEO Su Yu-min (蘇育民) commented that NDC’s overseas hubs are a boon for Taiwanese startups looking to expand internationally. He said early-stage companies often need a base abroad and hopes the government can help reduce high overseas costs.

The NDC established its first startup center in Tokyo in September. It plans to establish another startup hub in Southeast Asia.