TAIPEI (Taiwan News) — Vice Premier Cheng Li-chiun (鄭麗君) said Thursday that Taiwan’s proposed approach for investment in the US received positive feedback from US officials during tariff negotiations.
Returning from the fifth round of in-person Taiwan–US talks, Cheng said Taiwan proposed a “Taiwan model” distinct from approaches used by Japan, South Korea, and the EU, per CNA. The model lets companies plan investments independently, backed by government financial guarantees, and leverages government-to-government cooperation to develop industrial clusters.
Cheng said the model “received a positive response” from US officials. She added it should not be reduced to a science-park template, since both governments play important roles.
Taiwan hopes to secure three concessions alongside supply-chain cooperation: reduced tariffs, favorable treatment under Section 232 for semiconductors and related products, and supportive conditions for US investment.
She said the US seeks to strengthen domestic chip production to meet local demand, while Taiwan supports the global expansion of high-tech industries. Under this premise, Taipei will assist Taiwanese companies in expanding overseas.
Cheng said combining Taiwan’s manufacturing strengths with US capabilities in R&D, innovation, talent, and market access can foster a high-tech strategic partnership. The aim is to bolster technology leadership and deepen economic and trade ties.
She said current discussions on US investment focus on the Taiwan model, developed with domestic industry. The approach emphasizes industry-led planning, government financial support, joint development of industrial clusters, and favorable business conditions.
The model has four components. First, companies plan their own investments while the government coordinates private-sector deployment. Second, the government sets up financial guarantee mechanisms to expand corporate financing and encourage investment.
Third, in developing industrial parks, Taiwan’s science parks offer expertise that may not be fully replicable elsewhere, but Taiwan is willing to share experience through government-to-government cooperation to foster cluster-friendly environments and reduce costs and risks for firms.
Fourth, to promote clusters, the US should improve the investment environment by providing land, water, electricity, and other infrastructure, offering visa support, and establishing clear regulatory frameworks.
These steps would support corporate investment planning and supply-chain development in semiconductors and their supply chains, AI servers, and other high-tech sectors such as electronic manufacturing services.
