15 Banks Unite to Support Taiwan's Corporate Expansion to the U.S.! National Financing Guarantee Mechanism Opens Today with Initial Fund of $1.375 Billion

The government officially launched today (31st) the corporate investment financing guarantee mechanism for the United States, jointly established by the National Development Fund (NDF), the Export-Import Bank of China, and 15 participating financial institutions. The initial dedicated fund totals $1.375 billion, expected to facilitate up to $55 billion in corporate financing. This initiative aims to fully support Taiwanese companies in building supply chains in the U.S., expanding the global influence of key industries such as semiconductors and information and communications technology (ICT). A single company can receive financing of up to $5 billion, with the mechanism providing up to 50% financing guarantees, serving as the strongest possible backing for corporate international expansion.

To support Taiwanese companies in building supply chains in the U.S. and to demonstrate the government’s proactive commitment to creating mutually beneficial investment conditions and optimizing bilateral economic and trade systems, the National Development Council (NDC) announced today that the tripartite agreement for the corporate investment financing guarantee mechanism has been signed by the NDF, the Export-Import Bank of China, and 15 participating banks, with applications now open as of today.

The NDC stated that under the overarching strategy of “rooting in Taiwan, global deployment, and marketing worldwide,” the government is actively pursuing supply chain collaboration with the U.S. through the “Taiwan model” to deepen bilateral economic and trade partnerships. To this end, this mechanism will support financial institutions in providing up to $250 billion in corporate financing for Taiwanese companies investing in the U.S., based on companies’ autonomous investment decisions. The mechanism will be implemented in phases. The initial dedicated fund comprises $800 million from the NDF and $575 million from domestic banks, totaling $1.375 billion, expected to initially enable financial institutions to provide up to $55 billion in corporate financing.

The NDC stated that to deepen Taiwan-U.S. economic and trade cooperation and expand the global influence of Taiwan’s technology industries, the mechanism will provide financing guarantees for Taiwanese companies or foreign enterprises controlled by Taiwanese nationals in the semiconductor or ICT sectors. These guarantees will support capital expenditures, working capital needs, and various development and operational funding required for industrial cluster development. In terms of financing scale, a single company can receive up to $5 billion in financing, with the mechanism providing up to 50% in guarantees. By sharing risks with banks, the mechanism will assist companies in securing funding.

Due to strong support and response from the financial sector during the planning phase, the contributing banks include eight state-owned banks—Taiwan Bank, Land Bank of Taiwan, Cooperative Bank of Taiwan, First Commercial Bank, Hua Nan Bank, Chang Hwa Bank, Mega Bank, and Taiwan Business Bank—and seven private banks—Taipei Fubon Bank, Cathay United Bank, Yuanta Bank, Bank SinoPac, E.Sun Bank, Taishin Bank, and CTBC Bank—totaling 15 domestic banks. Combined with funding from the NDF, the initial $1.375 billion guarantee fund will be entrusted to the National Financing Guarantee Center of the Export-Import Bank of China to administer financing guarantee services. All parties have completed the signing of the entrusted agreement.

The NDC emphasized that promoting Taiwan-U.S. economic and trade cooperation and assisting Taiwan’s supply chain in expanding overseas will help strengthen Taiwan’s economic strength. The government will continue to demonstrate proactive actions through concrete measures. Through the national financing guarantee mechanism, banks’ credit risks can be effectively reduced while meeting the funding needs of companies investing in the U.S. Companies planning U.S. investments can now submit financing requests to any of the 15 participating banks or contact the dedicated hotline of the Export-Import Bank’s National Financing Guarantee Center. The government will continue to collaborate with industries and financial institutions to jointly build a prosperous future for Taiwan’s technology and economy.