Global R&D Innovation Partnership Program Department of Industrial Technology, MOEA

Introduction Purposes: Reaching out to multinational corporations that may find it mutually beneficial working with Taiwan’s enterprises, and encouraging them to invest in innovative R&D activities in Taiwan, thereby raising the level of all parties’ competitiveness. Co-developing a global R&D system in Taiwan with multinational enterprises, facilitating active cross-border cooperation, and bringing about win-win results for all participants. Advancing Taiwan’s industrial ecosystem via cooperation with multinational companies, thereby creating multitudes of added value for the industry.

Taking initiatives to attract inbound R&D capabilities from overseas Engaging multinational enterprises to establish their R&D capabilities in Taiwan; Enhancing and expanding the global presence of Taiwan’s industrial supply chain Teaming up with multinational enterprises with mutually beneficial advantages Taking initiatives to attract inbound R&D capabilities from overseas Developing Taiwan to become an ideal partner in innovative R&D, industrial production and value creation Expanding R&D investment in Taiwan to facilitate the creation of new business Working with domestic enterprises to co-develop industrial ecosystem Establishing a link to global value-chain and advancing Taiwan’s industrial strength in order to generate new business opportunities

Promotion Strategies Examining the development of Taiwan’s key industries to identify the technology gaps, and create new projects to amend the R&D shortfalls. Identifying the owners of the key technologies and seeking to form collaboration relationship with Aligning domestic enterprises to optimize Taiwan’s industrial chain Identifying industries with distinct advantages to form supply chains to attract multinational companies Integrating components companies along the supply chains to nurture the growth of domestic enterprises Available incentives: Government subsidies for foreign entities Providing subsidies for domestic enterprise participants

Top-Down (Call for Proposal) Think tank International collaboration program Research Institutes proposing priority industries/fields and target companies for promotion The priority industries/fields confirmed by the Department of Industrial Technology Public announcement of priority industries/fields Global R&D Innovation Partnership Program The goal is to link up with the global R&D systems formed by multi-national companies, and jointly engage in innovative R&D and value creating activities in Taiwan.  Phase 1 “R&D launching”: the recipients of the government subsidy shall undertake technology R&D activities in Taiwan, propose subsequent operating plans and verify their feasibility.  Phase 2 “Value creation ”: the recipients of the government subsidy shall establish their own industrial chains in Taiwan, increase inbound R&D investments, and contribute to the creation of new businesses, such as a new company, a new business unit, factory expansion or a joint venture with a domestic company.

Scope of Designated Fields The multi-national corporations that can benefit from working with Taiwan industry are encouraged to plan and develop the innovative technologies within the scope designated by the MOEA (see Appendix). Development guidelines: Alpha-stage technologies which can potentially be developed into strategic products, services, or industries in the future. Technologies with the potential to enable Taiwan to bring forth its own leading (flagship) technologies or greatly enhance Taiwan’s international competitiveness and industrial added value. Carrying out R&D to develop key enabling technologies, conducting vertical or horizontal technology integration to create the value for the respective industrial chains.

Eligibility of Applicants Foreign corporation may either apply for this program by itself without any Taiwanese partners, or lead a consortium formed with Taiwanese companies to apply for the subsidy and implement the program. Prerequisites:  Foreign corporation: Applicant must have proved industrial R&D track records and has established a branch office in Taiwan in accordance with Taiwan law. A company established in Taiwan by foreign companies or research institutes with industrial R&D track record is eligible. The applicant must not have been an dishonored customer of any bank, and the company must maintain a positive balance for its net worth (shareholders equity).  Domestic corporation: Domestic companies that have been registered in accordance with Taiwan law, including sole proprietorship and joint venture/company. It must not be an dishonored customer of any bank, and the company must maintain a positive balance for its net worth. Domestic company may participate in Phase one application or apply later to join the “Value creation phase”.

Application/Review Processes 【Phase 1—R&D Phase】 The applicants may present the project concept to the program office, as soon as the concept takes shape, to determine if the project would be beneficial to both the applicant and the relevant industry in Taiwan. A formal application is only due until after appropriate communications and discussions with the DOIT of MOEA. Concept discussion Submission of application documents. Applicants may be asked to amend certain documents, or to provide additional information. A formal meeting is then scheduled for the applicants to present the project to the reviewing committee. Application submission The applicant presents concept briefing in person (PPT file/40 minutes) which is followed by discussions with the review committee, where thoughts and ideas will be exchanged. Concept review The initial proposal is required to be drafted according to the directives or suggestions from the concept review committee. Then it should be submitted within a prescribed timeframe. Applicant then await notification to attend the project review meeting. The applicant should attend project review meeting as scheduled to present the proposed plan and answer questions from the committee members. Project review Project approval Each proposal is subject to the final approval of MOEA, at which time the amount of subsidy, as a percentage to the project budget, is determined. Official audit is to be conducted towards the conclusion of the R&D phase, at which time the project proposal of value creation phase is to be submitted. As a matter of principle, the duration of Phase 1 should not exceed 2 years. During the course of Phase 1, official audit is to be conducted annually. Contract signing and implementation

Application/Review Processes 【Phase 2—Value Creation Phase】 The proposal of value creation phase should be submitted upon the completion of R&D phase. Attending the scheduled project review meeting, applicant presents the proposal and answers questions from the members of the review committee. Project review The proposal is subject to the final review and approval of MOEA. The amount of the subsidy as a percentage to the project budget is determined by the Ministry when rendering its final approval. Project approval As a matter of principle, the duration of Phase 2 should not exceed 3 years. Phase 2 calls for the creation of new businesses, such as new company, new business unit, factory expansion, or a joint venture formed with domestic company. Government audit is to be performed annually during the course of the project. Contract signing and implementation

R&D Subsidies Items eligible for subsidies: Budget allocation:  Salaries of R&D personnel  Consultant fees  Foreign expert remuneration  Travel expenses  Expenses of consumable supplies and raw materials  Technology transfer fees, contract research fees, and verification fees  Overseas training expenses  R&D equipment usage fees  R&D equipment maintenance fees Budget allocation:  The amount of the subsidy should not exceed 50% of each project’s total budget. The subsidy granted to each participating company should not exceed 50% of the company’s budget allocated for the project. Any shortfall should be funded by all the participants.

Program Review‘s Key Considerations R&D Phase Concept review: Track records of applicants‘ R&D activities and projects execution experience. Feasibility of the R&D team formation and how the tasks are assigned. Extent of mutual benefits vis-à-vis industries in Taiwan. Feasibility of R&D collaboration planned by the applicants and Taiwan’s industries/academia. Feasibility of implementing program result planned for Taiwan‘s industries. Project review: Feasibility of the R&D team formation and how the tasks are assigned, and the ability to integrate resources among multiple participating parties to form the project jointly. Feasibility of the project, degree of control over key technologies, risk management skill, and adequacy of resources. Appropriate topics and suitable partners identified for contract research and technology transfer. Project timeline, implementation methods, target index set for technology, R&D topics, competitiveness analysis, anticipated benefits, and sufficiency of R&D budgeting. Value Creation Phase Feasibility of the R&D team formation and how the tasks are assigned, and the ability to integrate resources among multiple participating parties to form the application project jointly. Feasibility of project result application and the adequacy of resource investment. Viability of industrial supply chain to be formed (from R&D to manufacturing). Leading to major key impacts and benefits for Taiwan industries while driving the development of upstream and downstream of the industries. Project timeline, implementation methods, target index set for technology, R&D topics, competitive analysis, anticipated impact, and sufficiency of R&D budgeting. Level of activities among participating parties, cooperation schemes, and division of obligation and right. Reasonableness of the plan for the creation of new businesses.

Program Consultation Service DOIT of MOEA Address: 4F., No. 51, Sec. 2, Chongqing South Road, Taipei 10075, Taiwan, R.O.C. TEL: 02-2394-6000 Ext: 2566 Website: http://www.moea.gov.tw/Mns/doit Program Office of A+ Industrial Innovation R&D Program Address: 7F., No. 51, Sec. 2, Chongqing South Road, Taipei 10075, Taiwan, R.O.C. TEL: 02-2341-2314 Ext:2220 E-mail: yiin1104@iii.org.tw Website: http://aiip.tdp.org.tw

Appendix—Designated Fields Next generation communication technologies: including B4G/5G backend network techn ologies, B4G/5G test verification technologies, SDN/NFV technologies, and other next g eneration communication technologies. Optoelectronic /Electronic Materials: including semiconductor materials, packaging mate rials, LCD materials, touch panel materials ,and other optoelectronic/electronic material r elated technologies. Kilowatt-class fiber laser: including excited semiconductor laser, high power gain/passiv e optic fiber, fiber laser collimating device, and other technologies related to KW grade o ptic fiber laser source. Semiconductor manufacturing equipment: including semiconductor manufacturing equip ment tier2 technologies such as wafer stage, laser positioning feedback module, RF powe r module, impedance matching device, and other semiconductor equipment related techn ologies. CPS digital manufacturing system: including product life cycle management, manufacturi ng system control platform technology, and other technologies related to CPS digital man ufacturing system. High efficiency motor (higher than IE3): including motor design, manufacturing of key m aterials and components, automation technology, and other technologies related to high ef ficiency motor (higher than IE3). Pharmacy: including new niche drug, medical R&D service technology, and other pharm aceutical . Medical instruments: including high-end medical imaging technology such as wearable minimally invasive display technology, high-end hemodialysis technology, MRI imaging technology, and other medical instrument related technologies.