Taiwan expands tax credits to boost investment in advanced smart applications

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).

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SEMICON Taiwan 2025: Alliance Material showcases breakthrough double-sided RDL glass substrate process

Alliance Material, a semiconductor materials company, reported a surge in revenue in August 2025, reaching NT$67.93 million (US$2.23 million), a 15.84% increase from July and nearly four times higher year-over-year. Its cumulative revenue for the first eight months rose 204.15% to NT$280 million compared to the same period in 2024, marking its highest monthly performance since April 2016.

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Commentary: Decoding the new semiconductor world order

The semiconductor landscape has fundamentally shifted. As we move from 2025 to 2026, three forces dominate global technology discourse: semiconductors, artificial intelligence, and the Trump administration’s trade policies. In Japan and South Korea, semiconductors are aptly called the “rice of industry”—and in our data-driven economy, this metaphor has never been more relevant.

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