Taiwan Proposes Bringing Its Cluster Model for its US Investment. Can it Work?

TaiwanPlus News

Following trade talks in the US, Vice Premier Cheng Li-chiun has proposed exporting Taiwan’s “industry clusters,” like its famous science parks, as a model for its US investments in a new tariff deal. Business leaders say the model could work, while officials tried to ease concerns it could harm domestic industries.

Transcript

00:00Following a trip to the U.S. for trade talks to lower tariffs on Taiwan,

00:04Vice Premier Zheng Lijun is proposing a Taiwan model for U.S. investment,

00:08with the U.S. government helping to create industrial clusters.

00:12Some from Taiwan's business community say it could work.

00:15Taiwan's science parks offer a one-stop location that provides the infrastructure needed for

00:34high-tech industries, as well as tax incentives and other benefits. Officials say sharing the

00:40model with allies won't harm it at home.

00:45The proposed plan comes as U.S. officials suggest a 50-50 chip policy, requiring one chip be made

01:06in the U.S. for every chip imported. While some have raised concerns this could move more of

01:11Taiwan's semiconductor manufacturing offshore, investors aren't deterred. Taiwan's chip

01:17giant TSMC, for instance, capped a week-long rally Friday, rising more than 6 percent since

01:22Tuesday to a record-high finish. Regardless of the model, some in Taiwan say it's on the U.S.

01:28to reach their chip goals.

01:39Executives here say the model works for Taiwan. The question now is whether the U.S. can deliver

01:45the basics that make it work, and whether they are even interested in the effort it will entail.

01:50Luffy Lee and Chris Gorin for Taiwan Plus.

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