Taipei, June 4 (CNA) The Cabinet on Thursday approved a program to provide NT$10 billion (US$334.43 million) in subsidies over seven years to attract international emerging technology companies to invest in research and development in Taiwan.

The plan proposed by the Ministry of Economic Affairs will focus on attracting foreign technology firms to work with domestic industries to accelerate R&D on three core technologies -- emerging semiconductors, the next generation of communication technology and artificial intelligence industries.

It will develop a framework to facilitate research by international tech firms in Taiwan, co-innovation between Taiwanese and foreign businesses and the development of value-added apps by Taiwanese companies, with the aim of transforming Taiwan into a high-tech R&D hub, the ministry said in its report.

Deputy Minister of Economic Affairs Lin Chuan-neng made the announcement at a news conference after the Cabinet approved the plan during a regular meeting.

The ministry hopes that under the plan, high-tech firms will provide at least 50 percent of the funds needed to conduct R&D projects in Taiwan, with the government making up the rest, Lin added.

The program is expected to spur industries to invest at least NT$40 billion a year in R&D, creating 6,350 jobs, according to Lin.

The ministry estimates that the emerging semiconductor industry will generate NT$46.8 billion in production value and NT$400 billion in derivative applications by 2025, while the production value of the next generation of communication industry, which will cover 5G network construction and telecom/networking communication, is expected to reach NT$570 billion by 2025.

In addition, the production value of AI solutions could reach NT$360 billion by 2025, while that of AI value-added services could reach NT$750 billion, according to the ministry.