05 July 2021

Taiwan lines up revision of industry co-operation guidelines

by Jon Grevatt

Taiwan is considering a major revision to its Industrial Cooperation Program (ICP) to support the island's effort to enhance defence-industrial capabilities and better integrate its companies into international supply chains, Janes has learnt.

The potential changes to the ICP reflect Taipei's growing concerns about regional security, weaknesses in its defence-industrial supply chains, and opportunities to leverage the island's strong partnership with the United States.

The requirement to boost Taiwan's economy through greater local industrial involvement in defence procurements is another contributing factor.

Janes Defence Budgets forecasts strong growth in Taiwan's defence budget in the next few years. (Janes Defence Budgets)

Official sources in Taipei have confirmed to Janes that while the ICP has remained largely untouched in recent years, the policy is currently being assessed, with a view to introduce an overhauled industrial scheme in the next few months. The review is being led by the ICP Office: an agency under the Ministry of Economic Affairs' Industrial Development Bureau.

Details about the proposed changes to the ICP policy have not been disclosed, but Janes understands that they are expected to be aligned with trends across the Asia-Pacific region for heightened emphasis on industrial collaboration – in terms of facilitating production and export opportunities – instead of technology transfers.

Recent updates to the defence-industrial policies implemented by countries including India, Japan, South Korea, and Thailand have seen the emergence of similar priorities.

In addition, Taiwan's recently issued defence policy, the 2021 Quadrennial Defense Review (QDR), outlines a requirement for the island to lean on the ICP policy to support local capability advancement and efforts towards self-reliance.

Taiwan is considering a major revision to its Industrial Cooperation Program (ICP) to support the is...

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