UK and Taiwan commit to £5 million business innovation fund

The UK and Taiwan have announced a £5 million fund as part of a pledge to increase collaboration between the countries across technology and innovation.

UK trade minister Greg Hands will co-host the UK-Taiwan 25th annual Trade Talks in Taipei, aiming to boost trade and future-proof the UK’s economy by collaborating on green trade and supply chains, the government revealed today.

During the talks, Innovate UK, the country’s national innovation agency, will sign a Memorandum of Understanding (MoU) with the Ministry of Economic Affairs in Taiwan, which will include committing to a £5 million fund through to 2025 and support UK businesses through an innovation programme.

Additionally, the countries aim to promote diversified, resilient supply chains, and greater economic cooperation, bolstered by Taiwan's position as a leading manufacturer of semiconductor chips and a key player in global supply chains.

Hands set to meet with Taiwan’s president Tsai Ing-wen, minister of Economic Affairs Wang Mei-Hua, minister of Digital Affairs Audrey Tang, and ministers Kung Ming-Hsin and John Deng.

“Boosting trade with this vital partner is part of the UK’s post-Brexit tilt towards the Indo-Pacific and closer collaboration will help us future-proof our economy in the decades to come,” said Hands.

Taiwan has a GDP of over $770 billion, with the UK and Taiwan building on an existing £8 billion trade partnership that has grown by 14% in the last two years. The government added that visiting Taiwan in person has underlined the UK’s commitment to boosting its trade ties with the country.

Hands will also meet with deputy minister Chern-Chyi Chen to look at tackling barriers to trade in areas like fintech, food and drink, and pharma, hoping to aid more UK firms export and invest into the country. He will also promote UK expertise in offshore wind, hydrogen and electric vehicles, as well as in science and innovation.

Taiwan is a key semiconductor hub for many countries. and is crucial to the global supply chain of these components. It accounted for a 26% market share of semiconductor revenue in 2021, ranking second in the world, according to Trendforce. It also accounts for 64% of the foundry market, where the country’s manufacturers make chips for other companies.world.

The island was visited by the US in August 2022, and a number of its government websites were hit by cyber attacks which seemed to come from China and Russia. US House speaker Nancy Pelosi visited the island, which is important to the US since it houses the chip giant Taiwan Semiconductor Manufacturing Co (TSMC). Pelosi’s team reportedly met with the company to discuss the CHIPS act, a piece of legislation the US hopes will help it cultivate a domestic semiconductor supply chain.