Taipei, Aug. 17 (CNA) Hiwin Corp., a leading machinery supplier in Taiwan, has pledged an investment of more than NT$6 billion (US$191 million) to expand its production capacity in central and southern Taiwan, according to the Ministry of Economic Affairs (MOEA).
Hiwin, the second largest linear motion control system maker in the world, has secured MOEA approval for the project under a government incentive program to encourage overseas Taiwanese enterprises to return home amid the trade frictions between the United States and China.
According to the MOEA, Hiwin is planning to spend NT$6.2 billion to expand its production facilities in Taichung in central Taiwan and in Yulin and Chiayi in the south, which will create some 1,250 new jobs.
The company is returning home to better serve its clients, 70 percent of which are Taiwanese firms that have been affected by the tariff war between China and U.S. and are also seeking to return home, the ministry said Thursday.
Hiwin will also invest in smart manufacturing to improve its efficiency and lower its operating costs in Taiwan, according to the MOEA.
Hiwin is among the five latest Taiwanese companies that are returning home under the government incentive program, the others being printed circuit board maker Hannstar Board Corp., communications antenna manufacturer Wha Yu Industrial Co., feminine care item supplier K. N. S. Enterprise Co., and a global positioning system antenna maker that asked not to be identified, the ministry said.
The combined pledged investment of NT$12.3 billion by the five companies brings the total so far this year to NT$548.4 billion and the number of returning firms to 111, which will create about 47,660 new jobs, according to the ministry.
The MOEA launched the incentive program in January to encourage Taiwanese companies that have shifted all or part of their operations overseas in recent decades, especially to China, to return more investment to Taiwan as a way of avoiding high U.S. duties on products made in China.
The incentives offered include easier access to bank loans and a simplified process to recruit migrant workers, as well as services tailored to meet their needs.
Two weeks ago, the aggregate investments pledged by returning Taiwanese companies topped the NT$500 billion goal set by President Tsai Ing-wen (蔡英文) for this year, according to the MOEA.
The ministry said it is hoping to see at least NT$170 billion spent in the second half of the year, which will help boost the domestic economy.
Among the five latest companies that have pledged to return, Hannstar Board, the PCB manufacturing arm of the conglomerate Walsin Technology Group, plans to set up a NT$1.5 billion factory in Taoyuan and hire more than more than 90 local specialists, the MOEA said.
Wha Yu Industrial, the largest wireless communications antenna maker in Taiwan, is planning to invest about NT$500 million in a facility in Hsinchu to roll out telecommunication base transceiver station (BTS) antennas and will create 95 new jobs, the ministry said.
Several major Taiwanese companies such as iPhone assembler Hon Hai Precision Industry Co., PC brand Asustek Computer Inc., a smaller iPhone assembler Pegatron Corp., and U.S.-based smartphone brand Motorola are among Wha Yu’s clients, according to the MOEA.
Meanwhile, it said, sanitary napkin maker K. N. S. Enterprise will establish a NT$1.7 billion factory in Tainan to avoid the impact of the global trade war and also to expand its product mix.
As for the anonymous GPS antenna maker, which largely supplies products to smartphone brands, it is planning to invest about NT$2.3 billion to expand its smart manufacturing production lines, the ministry said.
(By Liao Yu-yang and Frances Huang)