Industrial Development Administration, Ministry of Economic Affairs

The Critical Industries International Supply Chain Linkage Promotion Program

Due to the U.S.-China trade conflict, the demand for industrial autonomy worldwide, and the impacts of the COVID-19 pandemic, the global ICT industry is undergoing a supply chain restructuring. In order to avoid the risk of “Polarization” and "de-Taiwanization" of the supply chain, and to resolve the low-profit dilemma, this plan proposes the establishment of an international supply chain information exchange and cooperation mechanism. This will help the ICT industries grasp international needs, maintain smooth information flow, accelerate time-to-market, and elevate Taiwan's engagement in next-generation technology, market opportunities and its international visibility. Domestically, the plan aims to build a trustworthy subsystem industry supply chain alliance ("Proven by Taiwan"). This will be achieved by streamlining the introduction of industry guidance and support mechanisms, as well as domestic and international field validation, to speed up product implementation and gear to international standards. The promotion methods of this plan are as follows:

1.Constructing an International Supply Chain Information Exchange and Cooperation Mechanism:

Establish information exchange and cooperation mechanisms with official representatives, industry associations, corporate think tanks, and major international companies. This is especially targeted towards industries with high future growth potential, such as intelligent electric vehicles, autonomous mobile vehicles, smart healthcare, and intelligent security technology. The goal is to assist in achieving cross-national policy alignments and enhancing industrial cooperation benefits.

2.Establishing a One-Stop Trustworthy Subsystem Industry Supply Chain Alliance ("Proven by Taiwan"):

The plan proposes to construct a trustworthy alliance system for Taiwan's IC chips, components, modules, sub-systems, and system products. Innovative subsystem modes will be introduced. By means of the introduction of an alliance-wide guidance and support mechanism (the "4S Mechanism"), The program aims to enhance confidence in the international supply chain. This is beneficial for subsequent gearing to international standards and fosters a mutually beneficial cooperation relationship and lift the overall competitiveness of our industrial chain.

3.Promoting Domestic and Transnational Subsystem Testing Field Establishment and Product Implementation:

Develop key industries (like smart electric vehicles, autonomous mobile vehicles, smart healthcare, intelligent security technology, etc.) in the sub-domain, focusing on implementing smart solutions in domestic test fields. This will shorten the adaptation time of solutions entering into international markets, generating industrial benefits. At the same time, in application for financial methods, alliance companies are facilitating to identify suitable international supply chain or field cooperation and forming influential and representative successful subsystem cooperation cases. This promotes cooperative benefits between upstream and downstream industries and international key industrial chains.