The economics ministry says it plans to turn Taiwan into a high-tech research and development center.
The plan aims to help cope with the impact of the COVID-19 pandemic and the ongoing trade war between China and the United States.
At a Cabinet meeting Thursday, Vice Economics Minister Lin Chuan-neng said that the government will inject NT$10 billion (US$333 million) into the plan over the course of seven years.
The money will be spent on subsidizing foreign manufacturers to do research and development in Taiwan. The emphasis will be on emerging semiconductor technology, 5G technology, and artificial intelligence.
Also at the meeting, Premier Su Tseng-chang said that the COVID-19 pandemic has prompted global enterprises to speed up their exodus from China. Su said this trend gives Taiwan a great opportunity to strengthen its industries.