Taiwan Cabinet will allocate some NT$10 billion (US$334 million) to a program to attract foreign tech firms that specialize in emerging technologies, a source familiar with the matter told the Central News Agency on Wednesday.
The special budget aims to provide incentives to foreign tech companies that are willing to invest in research and development in Taiwan.
The budget is not finalized yet, but the incentives will depend on the size of the investment and the number of people they would hire in Taiwan, according to CNA.
Many foreign tech companies are revising their expansion strategies in the Asia Pacific region as the trade tensions between China and the United States continue to escalate.
The budget announced by the government, however, seems rather low compared to incentives also offered in countries such as South Korea, Japan and China amid the pandemic.
Analysts expect most countries to boost subsidies this year in a bid to boost their GDP over the next 2 to 3 years.
The pandemic is far from over and foreign investment is the new gold for political leaders, they argue.