As investors worldwide pull funds out from under dotcom start-ups and other high-tech ventures, local companies are charging ahead into biotech -- with a combined portfolio valued at nearly US$4 billion.
Not only are the nation's 200 venture capital firms banking on biotechnology as the next great investment, most of Taiwan's biggest conglomerates are also jumping on the bandwagon, including Uni-President Enterprises Corp (
"Everybody knows biotechnology is the wave of the 21st century. People see a lot of potential for new products and new markets in this industry," said Lee Hua-yang (李華楊), director of Uni-President's Central Research Institute (中央研究所) in southern Taiwan.
Uni-President has already invested over US$100 million in biotechnology firms in the US, Canada and Taiwan. The firm put NT$800 million (US$26.7 million) into promising local pharmaceutical manufacturer ScinoPharm Taiwan Ltd (
The Formosa Plastics, the biggest conglomerate in Taiwan, also invests in biotechnology, through a subsidiary firm staffed with biotech professionals. The company refused to disclose an exact figure, but in addition to cash investments, it is also developing subsidiaries in chemical and other areas with an eye toward biotechnology applications.
Unlike Formosa Plastics and Uni-President, other companies in Taiwan are utilizing the nation's venture capital firms to better aim their investment cash. Venture capital firm MDS Capital Corp (創投公司), counts among its clients one of Taiwan's top conglomerates, Far Eastern Textile Ltd (遠東紡織).
"Most of the conventional industries in Taiwan are interested in biotechnology. The chairmen of each enterprise needs to look ahead ... if the IC industry drops, or the telecom industry drops, they need to be ready for the next wave, and they are convinced biotechnology is the next wave," said Lin Bing Bing (
His company has already collected over US$200 million for investment in biotechnology. MDS Capital's Sino-Canadian Biotechnology Development Fund is capitalized at US$40 million in cash, all from Taiwanese companies, and the firm's US$187 million Life Science Technology Fund, lists among its clients Taiwanese, Japanese and US firms.
According to Lin, the rapid growth of biotech-related industries in the US really piqued the interest of company and government leaders here in Taiwan. Companies have rushed to invest their profits in biotech and the government is promoting biotechnology as the latest high-tech industry for Taiwan. The nation has already been successful in computers and semiconductors. The third wave for Taiwan appears to be biotechnology.
"Although Uni-President is a food company ... we also look at other industries to develop, like biotechnology," said Uni-President's Lee. "We invest abroad and when companies come back here looking for partners, they will come to us. A lot of companies come to Taiwan looking for us as a partner because we're a very solid company."
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