Accelerate Investment! The Ministry of Economic Affairs has approved ten CVC (Central Venture Capital) projects, including those from Lee Chang Yung Chemical, UMC, Taiwan Cooperative Bank, and Pegatron.
Accelerating Investment! Taiwan's Ministry of Economic Affairs Approves 10 CVC Venture Investment Projects from LCY Chemical, UMC, Taiwan Cooperative Bank, Pegatron, and Others
Economic Daily News / Reporter Chiang Jui-Chih, Taipei
On the 29th, Taiwan's Industrial Development Administration (IDA) under the Ministry of Economic Affairs announced the first round of results for its "Venture Capital Accelerates Innovation and Startup Program." The ministry officially approved subsidies for 10 startup companies invested in by major corporate venture capital (CVC) investors, including LCY Chemical, UMC, Taiwan Cooperative Bank, Pegatron, Compal, and others. The IDA also announced the launch of the second application round this year, expanding participation beyond CVCs to include venture capital (VC) firms. Over the next four years, the program is expected to attract more than NT$10 billion in investments, helping startups accelerate commercialization and growth.
On the 29th, the IDA held a press conference to announce the results of the "Venture Capital Accelerates Innovation and Startup Program" and officially launch the second application round. IDA Director General Chiu Chiu-Hui noted that in Silicon Valley, approximately 90% of startup companies achieve successful exits through mergers and acquisitions (M&A), while only around 10% go public through IPOs. In contrast, more than 90% of Taiwanese startups pursue IPOs, with fewer than 10% being acquired by corporations. He emphasized that IPOs should not be the only exit strategy for startups, as corporate investment and acquisitions can stimulate external innovation while providing startups with more diversified growth opportunities.
Regarding the review mechanism, Director General Chiu explained that the program's greatest innovation lies in fundamentally reforming the traditional government subsidy evaluation process. Instead of relying primarily on technical reviews, it adopts a market-driven approach. In simple terms, private investors first commit capital and assume investment risks, after which government resources are allocated to provide additional support. The application process has also been significantly streamlined, enabling startups to commercialize their technologies at critical stages and seize market opportunities more quickly.
In its first phase this year, the "Venture Capital Accelerates Innovation and Startup Program" focused on startups receiving investments from CVCs. The Ministry of Economic Affairs approved 10 projects with government subsidies totaling NT$176 million, leveraging NT$1.25 billion in investments from major corporations. The selected projects span five strategic industries: artificial intelligence (AI), semiconductors, drones, biotechnology, and the circular economy.
According to the IDA, the selected startups include Anghong Technology, Alpha Imaging Technology, Meike Technology in the AI sector; Zhensheng in semiconductors; Quanrui Composite Materials, specializing in key drone technologies; Chia Cheng Biotechnology, Taiwan Exosome, Pentium Smart Biomedical, Asia Translation Biotechnology in the biotechnology sector; and Better Sustainability Technology in the circular economy sector. Investors include LCY Chemical, Eternal Materials, Raydium Semiconductor, Nan Shan Life Insurance, Pegatron and H&D Venture Capital, Feng Zhao Aerospace, UMC Hong Cheng Venture Capital, Taiwan Cooperative Financial Venture Capital, Compal Electronics, TCI Co., Ltd., Lee Chou Technology, and others. LCY Chemical Chairman Hung Tsai-Hsing also attended the press conference in person.
The IDA also officially launched the second application round while introducing several improvements based on the experience gained during the first phase. First, investor eligibility has been expanded. While only CVCs were eligible in the first round, the second round welcomes participation from venture capital (VC) firms, significantly increasing investment capacity. Second, the subsidy mechanism has been enhanced to encourage lead investment. If a qualified VC provides a lead investment of at least NT$30 million, the government will offer subsidies of up to NT$20 million. Furthermore, if two or more additional qualified VC firms each contribute follow-on investments of at least NT$20 million, the maximum government subsidy may increase to NT$30 million, further encouraging private-sector investment.
Director General Chiu stated that the core objective of the "Venture Capital Accelerates Innovation and Startup Program" is to connect startup resources, allocate funding efficiently through market-oriented mechanisms, and collaborate with leading venture capital firms. By continuing to adopt a market-based project selection process and a "large enterprises supporting startups" model, the program aims to generate more than NT$10 billion in tangible investments and help build a globally competitive industrial innovation ecosystem for Taiwan.