Weekly Roundup: Taiwan Faces T$20 Billion Tech Cuts, Digital Nomad Visas Launch in 2025, Carbon Fee Program Begins at NT$300/Ton

Tech Spotlight

• Taiwan’s science ministry warns of T$20 billion funding cuts for semiconductors, AI, and aerospace in 2024, driven by opposition-led laws redirecting budgets to local governments. Economic ministry projects T$29.7 billion cuts, including T$11.6 billion from tech projects, risking partnerships with firms like Micron, AMD, and Nvidia. Reuters

• FIH debuts at CES 2025, showcasing automotive electronics solutions, including 4G/5G TCUs, IVI systems, HPC, and ADAS technologies. Highlights include eCall-equipped TCUs, a 44.8-inch IVI display, and AI-driven ADAS for safer driving. Foxconn

• Taiwan approved the "Southern Silicon Valley Plan" to integrate tech hubs in southern Taiwan, boosting AI development and competitiveness through industry-academia collaboration and digital transformation. Taiwan News

Politics

Photo: Central News Agency

• Former Taipei Mayor Ko Wen-je was charged with bribery and misuse of political donations, accused of taking T$17.1M in bribes over a property development and embezzling T$68M in campaign funds. Prosecutors seek over 28 years in prison, citing illegal benefits for conglomerates. CNA

• Taiwan's carbon fee program began Jan. 1, 2025, charging NT$300/ton for large emitters, with fees starting in 2026. Critics call the rate low, but it aims to drive innovation and align with EU CBAM standards. Revenue supports net-zero goals, with rates rising post-2030. American Chamber of Commerce in Taiwan

• President Lai Ching-te seeks reconciliation with Legislative Speaker Han Kuo-yu, inviting him for talks ahead of a bipartisan delegation visit to the U.S. Lai aims to address legislative challenges and foster cooperation amid tensions after opposition rejection of presidential judicial nominees. Taiwan News

Finance Focus

Photo: Ralph Jennings

• Taiwan launches six-month digital nomad visas starting Jan. 1, 2025, to address workforce shortages tied to declining birth rates. Part of a goal to attract 400,000 foreign workers by 2032. South China Morning Post

• Taiwan’s Russian coal imports surged 31% in 2023, totaling $3.5B, despite Taipower halting purchases in 2022. Russian oil imports also rose 200%, contributing $600M to Kremlin revenues. Advocacy groups urge a halt to Russian fossil fuel imports. CREA

• Hon Hai invests NT$11.3B in the U.S., boosting its AI server production capacity through eight subsidiaries, including Cloud Network Technology USA. Recent US$33M land acquisition in Houston aligns with its focus on AI and EV development under its "3+3" strategy. Focus Taiwan

Global Focus

Photo: Kaohsiung City Government

• Taiwan President Lai Ching-te calls for dignified exchanges with China, questioning its goodwill due to travel restrictions. He urges democracies to unite against authoritarian threats, citing China's military actions and ties with Russia, while emphasizing defense and democratic supply chains for global peace. Reuters

• Taiwan reports China's first New Year "combat patrol" near the island, involving 22 aircraft and warships. Taiwan's defense forces monitored the activity, calling it intimidation. This follows President Lai’s renewed call for talks with Beijing, which continues military pressure and dismisses his outreach as separatism. Reuters

• Cross-strait tourism remains stalled after years of political tension and the pandemic. Positive talks in Shanghai hint at potential city-to-city travel resumption, a step seen as economically beneficial and trust-building. However, analysts warn political challenges may hinder long-term progress as China's reunification pushes clashes with Taiwan's resistance. CNA

• Kaohsiung joins the Unbroken Cities Network, supporting war-affected Ukrainian cities. Mayor Chen signed an agreement with Lviv’s Mayor Sadovyy to aid medical and reconstruction efforts, including Taiwan's funding of Lviv’s Unbroken Medical Campus. Taiwan News

Taiwan in Numbers

Photo: Amy Yang, Taipei Times

• Taiwan's 2024 car sales fell 4% to 457,830 units, normalizing after a boom. Hotai Motor led with a 33.5% market share despite a slight decline. Tesla (+16.1%), BMW (+14.7%), and Hyundai (+2.3%) saw growth, while Audi (-20.1%) and Volvo (-2.4%) declined. January 2025 sales are forecast to drop 6.3% ahead of Lunar New Year. Taipei Times

• Taiwan's PMI slowed to 50.8 in December, signaling weaker manufacturing expansion amid uncertain demand. Non-manufacturing PMI rose to 56.5, driven by strong commercial property activity despite residential market challenges. Focus Taiwan

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