Deregulation Implemented to Boost International Investment in Taiwan.

To effect global investment promotion campaign, the Executive Yuan has been thoroughly reviewing financial and economic laws and regulations and deliberating the feasibility of deregulation in light of the needs of specific industries.  Ministries and commissions are mobilized to set up a single-window and a taskforce for investment assistance, so as to create an investment-friendly environment.

In the first round of global investment promotion campaign, ten main themes were initiated and the representative participants from private sectors suggested deregulation with respect to the free trade zone of Taoyuan Aerotroplis, incorporation of private institutions that deal with international medical care, building of cloud computing control room, and urban renewal, etc.  The CEPD (the Council for Economic Planning and Development) states that deregulation will focus first on reformation of investment environment and then on review and examination of the needs of specific industries.

Taiwan’s investment promotion group traveled overseas to Japan and came back with brilliant performance and success.  They have signed memorandum of understanding with Kodansha Ltd., E-Book Japan Consortium, SONY, and FIS Inc. and also signed letter of intent with Rakuten, Inc..  Japanese enterprises will enlarge investment scale in Taiwan by licensing.  Digital content and culture and creativity industries covering E-books, movies, animation, game production, multimedia entertainment technology, and multimedia platform will be the main areas of cooperation.

Bullish growth in e-book market is foreseeable as a result of the anticipated vigorous investment to be put in digital content industry in 2011.  In this regard, it is imperative to launch into the e-book reader market.  E Ink, SiPix, Bridgestone, and Fujitsu hold e-paper technology, and Prime View International (PVI) and AUO in Taiwan have merged and acquired the former two companies.  At present, Taiwan-based suppliers provide 90% of e-paper over the world, and there is a complete e-book industry chain operating in Taiwan. 

More than that, the cross-strait ties have become more closer not only in official way by signing the ECFA but also in private sectors; the leading company in the Chinese e-book industry, Hanvon Technology Co., Ltd. is one of PVI’s customers, and PVI is going to work with Chinese publishers to launch digital textbooks and assist in promoting Chinese e-book platform so as to develop the digital education market in China.  Taiwanese and Japanese enterprises may take a free ride on such cooperation to prepare launch and positioning into Chinese market.  Taiwan’s dominant position of taking the lead in the e-book industry is expectable.

Performance of Taiwan investment promotion in the first round
MOU signing	Content of Cooperation
SONY	Expansion of cloud computing and technology cooperation / cooperation of multimedia entertainment technology / development of information and communication products for emerging markets
Kodansha Ltd. / E-Book Japan Consortium	License cooperation of movie, animation, and game production, increase of investment in Taiwan
FIS Inc.	R&D cooperation of air detection products with respect to semi-conductor vehicles, environment, medical treatment, and safety; establishment of R&D points with Taiwan-based businesses
LOI signing	Content of Cooperation
Rakuten, Inc.	Expansion of consumer finance, development of multimedia content platform by combination of cloud computing technology, increase of investment in Taiwan for positioning in the world
In negotiation	Content
Mitsubishi Corporation, Yamazaki Mazak, Fujitsu, NEC, TDK, Hitachi, Sumitomo Mitsui Banking Corporation	Organization of system integration team, WiMAX system integration technology, establishment of international R&D center in Taiwan, investment of cloud computing technology in Taiwan, post-ECFA investment cooperation
Source:  Executive Yuan MOU:  Memorandum of Understanding LOI:  Letter of Intent

(2010.08)
/CCS