The country’s semiconductor industry is booming, which makes it a fantastic place for startups. From government support to the existing technological infrastructure, many factors make the country a great place to start up.

Incubators and accelerators

Taiwan is home to many accelerator programmes and startup incubators that help foster a thriving startup ecosystem.

One of these incubators is Garage+, a zero-equity incubator supported by the Epoch Foundation. Epoch is a non-profit organisation that was founded by 20 leading Taiwan companies including big names such as Philips Taiwan, TSMC, Delta Electronics, and Acer. It aims to facilitate Taiwan’s domestic industry growth whilst promoting regional economic prosperity.

Garage+ hosts a number of programmes to support startups in the area. Its Starship Programme provides early-stage pre-funding startups Garage+ resources, exclusive mentors, and a free workspace for six months. Its Startup Global Programme offers Taiwanese startups a number of resources, including incubation resources from Garage+, business and venture capital matchmaking, global business opportunities, talent recruitment, mentorships, large expo participation opportunities, and free working space for three months. The programme aims to bridge international startups from all over the world with top- tier Taiwanese companies that are key players in the global supply chain.

Existing tech and research infrastructure

The existing tech and research infrastructure makes the country a fantastic place for tech startups looking to begin their journey. Its current tech ecosystem means manufacturing physical products and sourcing materials is a lot easier than it may be elsewhere in the world.

Speaking with May Yang, Director at Garage+, she explained: “Taiwan's industrial clusters are highly concentrated, enabling startups to source materials for hardware manufacturing quickly. Some large companies have dedicated departments that cater to small-scale manufacturing for startups, and there are also small to medium-sized manufacturing companies specialising in serving startups. This is why many international startups with hardware manufacturing needs come to Taiwan for assistance.”

Taking into account that Taiwan is such a technological hotspot, there is a lot of high-quality talent that comes out of the universities and its multiple research institutions. Yang continued: “Startups spun off from research institutions in Taiwan benefit from the strong technical expertise they possess. The universities in Taiwan play a significant role in this, offering innovation and entrepreneurship courses that foster an entrepreneurial spirit among students. This spirit often leads students to join startups or start their own businesses after graduation, contributing to a robust talent pool for startups.”

By encouraging innovation and an entrepreneurial spirit, the country fosters a healthy ecosystem that allows its startups to thrive.

Government support

“The government provides various startup resources, including investment opportunities, R&D and overseas exhibition subsidies, preferential loan programmes, and the establishment of startup hubs that accommodate international accelerators and startups,” commented Yang. “Additionally, Taiwan offers more startup-friendly IPO opportunities. The overseas exhibition subsidy is the most effective of these resources, as it helps startups gain business and investment opportunities.”

Not only does the Taiwanese Government support the startups in its country, but it aims to encourage foreign talent into its tech ecosystem.

Yang explained: “The Taiwan Government has introduced the Employment Gold Card, which attracts top overseas talent to Taiwan. As of the end of 2023, 8,962 Employment Gold Cards had been issued.”

The Employment Gold Card is aimed at overseas entrepreneurs setting up business in Taiwan, or those working for a Taiwanese company. It is a combined work permit, residence permit, and visa for skilled professionals, and has been active since 2018.

As mentioned earlier as one of Garage+’s programmes, “Taiwan's most successful international startup programme, the Startup Global Programme, with over 2,800 applications from nearly 90 countries, has supported 283 international startups in developing their businesses in Taiwan, with a third successfully securing orders, investments, or partners.”

To encourage startups and SMEs to start and establish their businesses in the country, the Taiwan Government, at both national and local levels, provides various supporting awards, grants, and loans.

Awards

• Taiwan SMEs Innovation Award – the Taiwan SMEs Innovation Award’s aim is to politically create a climate promoting innovative R&D, to inspire the prosperity of SMEs in the country
• Business Startup Award – the Business Startup Award aims at encouraging startups and enterprises to develop innovative products, technologies, processes, or services, and create a premium business model

Loans

• ME Innovation Development Project Loan – to be eligible for this loan, startups must fit the given criteria. If eligible, they are able to receive up to NT$80 million for capital expense, and up to NT$20 million for revolving fund
• Small Enterprise Loan – targeting legally registered companies with less than 10 employees, and is provided by private banks
• Young Entrepreneur Financing Loan – young entrepreneurs aged 18 to 45, eligible for the Young Entrepreneur Financing Loans, can take advantage of preferential interest rates to help launch their new ventures. These loans come with direct credit guarantees covering 80 to 95% of the loan amount, provided by the SME Credit Guarantee Fund, with a maximum borrowing limit of NT$18million

Grants

• Small Business Innovation Research (SBIR) – to be eligible for this grant, companies must be developing a brand-new idea, concept, or technology, applying an existing technology to a new application, applying a new technology to an existing application, or improving an existing technology or product
• Service Industry Innovation Research (SIIR) – this research grant is for companies legally registered in Taiwan, not including branch offices, with positive equity in the retail, logistics, restaurants, advertising, or e-commerce industries
• National Development Fund Business Angel Investment Programme – the National Development Fund Business Angel Investment Programme is to support entrepreneurs with innovative capacities and global scaling potential
• Taipei City Industry Incentive Subsidy Project – this project was launched by Taipei City Government to encourage technology development. Taipei City is the first city government in Taiwan to provide R&D, brand establishment incubation, new startups, and competitive industries to develop key industries

With its stunning attractions and natural beauty, as well as its thriving tech ecosystem, Taiwan has shown it is a country fantastically set up for startups. From Government support and incubators, to the existing infrastructure that helps technology companies thrive, there is no shortage of support when starting up a tech business.

This article originally appeared in the September/October 2024 issue of Startups Magazine. Click here to subscribe

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.