《TAIPEI TIMES》 Development fund expands coverage

The amendment to the National Development Fund's investment criteria reflects an adjustment to how Taiwan aims to support its AI sector. By considering offshore entities, the government acknowledges that some Taiwanese-affiliated startups may structure themselves internationally for fundraising or market access while retaining core operations on the island. This flexibility is intended to ensure these companies remain eligible for domestic support.

The criteria for offshore companies to qualify are specific, requiring that their main business activities and investment targets are in Taiwan. This includes maintaining R&D headquarters, spending over 50 percent of their R&D budget locally, recruiting more than 50 percent of their employees from Taiwan, and generating 50 percent of their total revenue from Taiwan-based offices. These conditions aim to tie the investment to tangible economic activity within Taiwan, rather than just nominal affiliation.

Examples like Turing Drive and Linker Vision illustrate the international reach of some Taiwanese AI startups. Turing Drive's autonomous vehicles began operating in Japan and it has secured Japanese investment, while Linker Vision collaborates with global tech giants. The NDF's expanded scope could facilitate continued growth for such companies, allowing them to pursue international expansion without necessarily losing access to domestic government and private sector funding, provided they meet the specified operational thresholds in Taiwan.