Taiwan's biotech gathers momentum

Leader: Backed by coordinated efforts from both government and industry, Taiwan's biotechnology sector is expanding steadily, with revenues reaching approximately $23.3 billion in 2023. The industry is positioning itself as an important player in the global biotech value chain. But what will it take for Taiwan to grow into a $32 billion biotech economy? Let's find out.

-  Ayesha Siddiqui

Biomedicine is a key focus under Taiwan’s '5+2' Innovative Industries Plan, with the government aiming to establish the country as a leading hub for biomedical research and development in the Asia-Pacific region. Taiwan has reaffirmed its commitment to biotechnology as a strategic industry for 2024 and 2025, introducing new legislation and increasing funding to support growth.

In August 2024, Premier Cho Jung-tai announced a comprehensive set of biotech policies. The country also approved the Regenerative Medicine Act and related product regulations, aimed at advancing the development of cutting-edge therapies. The government also increased its budget for 2025, allocating NT$146.6 billion (approximately $4.6 billion) for technology, marking a 14.9 per cent increase. The funding will support AI-driven medical research and development, as well as workforce training across the Education, Economic, and Science ministries.

Taiwan aims to replicate its semiconductor success in the biotech sector, and a key step in that direction was the launch of the Taiwan BioManufacturing Corporation (TBMC) in May 2023. Modelled after Taiwan Semiconductor Manufacturing Company (TSMC), the government holds a 40 per cent stake in TBMC, underscoring its strategic importance. While biotech has long been identified as a priority sector for Taiwan, its capital-intensive nature and long development timelines have made sustained government and consortium support essential.