Taiwan’s traditional industries are facing operational pressures from US reciprocal tariffs. However, to encourage companies to invest in the next phase of growth, the Legislative Yuan has passed law amendments proposed by the Ministry of Economic Affairs (MOEA), expanding tax credits for companies investing in smart machinery, 5G, cybersecurity, AI, and energy-saving carbon reduction equipment. Such companies can now receive tax credits up to NT$2 billion (US$61.8 million).