Pioneering U.S. Expansion! National Development Fund Injects $800 Million to Launch Financing Guarantee Mechanism, Initial Leverage Reaches $55 Billion

The National Development Fund Management Committee today (4th) received a report on the financing guarantee mechanism for corporate investment in the United States. This mechanism, jointly established by the NDF and domestic banks, operates on a shared-risk model to lower financing barriers for Taiwanese companies investing in the U.S. and support their international market expansion.

The initiative will be implemented in five phases, with the NDF committing $800 million in the first phase—accounting for nearly 60% of the total dedicated guarantee fund—demonstrating the government's strong policy commitment to supporting corporate expansion into the U.S.

In addition, the financing guarantee mechanism includes a combined contribution of $575 million from 15 domestic banks, forming a total guarantee fund of $1.375 billion. This is expected to stimulate approximately $55 billion in corporate financing demand. Future phases will be launched progressively based on implementation outcomes, with the scale gradually expanded to potentially drive up to $250 billion in total financing, maximizing the leverage effect of government funding.

Yeh Jyun-sian, Chairperson of the National Development Council and convener of the NDF, stated that the Executive Yuan has approved the implementation of this financing guarantee mechanism to fulfill the Taiwan-U.S. Investment Cooperation Memorandum of Understanding. Amid global supply chain restructuring and growing corporate demand for overseas expansion, the government will continue to serve as the most solid support for enterprises. This mechanism provides stable and sufficient financial support to companies while adhering to financial institutions' credit risk management principles, helping Taiwan's industries extend their international footprint and further enhance Taiwan's overall competitiveness within the global supply chain.

Yeh noted that the application process for the mechanism has already commenced, with highly enthusiastic responses from the industry. By sharing risks between the government and financial institutions, banks' willingness to extend credit is effectively enhanced, enabling companies to seize investment opportunities in the U.S. This will further deepen Taiwan-U.S. economic and trade cooperation and reinforce Taiwan's critical position in the global high-tech supply chain, creating a win-win-win scenario for the government, enterprises, and financial institutions. Going forward, two-way investment will not only promote trade balance and mutual economic benefits between Taiwan and the U.S. but also continuously strengthen the strategic economic partnership between the two sides.