Branded products get boost through hiked Govt subsidies

20 Sep '05

2 min read

The Industrial Development Bureau (IDB) under the Ministry of Economic Affairs (MOEA) has decided to boost the ceiling subsidy for the development of brand products by domestic manufacturers to 50 percent of the project budget proposed by applicants from the existing 40 percent, effective in October.

IDB officials indicated that the decision is designed to encourage domestic manufacturers to establish and promote their own brand products in the international market. Among the industries eligible for the subsidy are manufacturing and related technical service industries, including semiconductor, optoelectronics, telecommunication, information technology (IT) services, digital content services, and such traditional industries as basic metals, petrochemicals, machinery, and textile.

So far the subsidy measure has benefited 639 applicants, mainly from manufacturers in the industries of consumer electronics, precision machinery, and telecommunications. MOEA believed that the subsidies could inspire domestic manufacturers to step up R & D efforts, so that they can come up with more innovative and unique design products for the world market under own brand names.

This year the government's subsidy budget for the brand establishment program totals NT$700 million (US$20.59 million at US$1 = NT$34), and the budget for next year is estimated at NT$750 million (US$22.1 million). MOEA hoped to have more qualified applicants for the subsidies next year.

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