The Startup Column: Reassessing the Startup Ecosystem of Taiwan’s Six Major Cities – Kaohsiung
Kaohsiung City is the largest city in southern Taiwan, with a population of 2.73 million, and is widely known as the “Port City.” It has long been a major center for the steel and petrochemical industries. In recent years, the city has been actively transforming into an AI hub, with leading international companies such as NVIDIA, AMD, and TSMC establishing operations there. The “Semiconductor S-Corridor” and the “Asia New Bay Area 2.0” initiative are gradually taking effect.
Startup Hubs and Incubation Platforms
Kaohsiung has developed a diverse network of startup hubs. Startup Terrace Kaohsiung is the largest international startup base in southern Taiwan, focusing on 5G, AIoT, digital content, and smart port technologies. It has attracted major global cloud service providers such as AWS, Microsoft, and Google, as well as 13 international accelerators, facilitating over NT$2.7 billion in investment and business opportunities.
MEGABAY Startup Hub focuses on digital innovation and net-zero transition, and has signed memoranda of understanding with partners in Okinawa and Kosovo to strengthen cross-border collaboration within the startup ecosystem.
Kaohsiung Intelligence Navigator (KO-IN) focuses on artificial intelligence, IoT, blockchain, and fintech. In 2023, it established a Digital Twin Lab to connect medium and large enterprises with startups.
In addition, DAKUO Digital Content Center is Taiwan’s earliest publicly operated incubation institution. DAKUO and KO-IN together form the Kaohsiung Digital Technology Innovation Hub. Pier-2 Base revitalizes old spaces to create a cultural and creative cluster; Pinway (Pier-2 Warehouse No.8) continues the maker and fabrication culture; Southern Taiwan IoT Service Hub centers on AIoT product mass production; and the Southern Taiwan IC Design Industry Promotion Hub focuses on building a semiconductor industry cluster. Working with IC design companies and ecosystem collaborators, the hub integrates a wide range of resources, including technology development, talent recruitment, funding support, business development, and product validation.
Launched in January 2025, the Finnovation Hub is Taiwan’s first green fintech hub, working in collaboration with the Taiwan Carbon Solution Exchange and the Net Zero Institute to promote financial innovation. In partnership with National Tsing Hua University, CTBC, KPMG, and the Industrial Technology Research Institute (ITRI), the hub supports fintech startup incubation and mentoring, talent development, and cross-domain validation projects.
Accelerators and Incubation Centers
Accelerators in Kaohsiung help startups scale through structured programs, providing funding, training, mentorship, workspace, business validation, and connections to corporate partners and international markets.
Creww Taiwan is the Taiwan branch of Creww, a leading Japanese accelerator with a database of over 8,000 Japanese startups, and has implemented three Taiwan–Japan accelerator programs. Since establishing Creww Taiwan in 2023, Creww has run three Taiwan–Japan accelerator cohorts, engaging over 100 startups in a corporate-led model that helps Taiwanese teams scale and enter the Japanese market.
Legend Innovation Industrial Accelerator is the largest investment-oriented industrial accelerator in southern Taiwan, supporting over 50 startups annually and having invested in more than five tech startups.
Digi KSP(Kaohsiung Software Park) assists traditional industries in central and southern Taiwan with digital transformation. It partners with MOEA’s SMESA and the National Innovation and Entrepreneurship Association to support SMEs in digitalization and succession planning, having assisted 200 companies to date. By integrating public and private resources, Digi KSP organizes training and networking activities while running a six-month accelerator program that provides mentorship, business support, and flexible workspace for startups, SMEs, and remote teams.
More than half of Kaohsiung’s incubation centers are affiliated with universities, including National Sun Yat-sen University (NSYSU), National Kaohsiung University of Science and Technology, and National Kaohsiung Normal University, among 12 institutions. NSYSU leads the Global Research and Industry Alliance, focusing on four key areas: high-value materials, marine and agricultural technology, civilian and defense industries, and biotechnology and medical technology, to promote the commercialization of academic research.
Alongside university-affiliated centers, the Kaohsiung Software Incubation Center supports startup development in the Kaohsiung Software Park. It provides technical support, consulting, VC matchmaking, and office space to advance innovation in southern Taiwan’s digital industries. As of July 2025, the center hosts 26 resident firms, has incubated 108 SMEs, and facilitated over NT$710 million in investment and capital increases.
Investment Institutions and Funding Support
Among venture capital firms registered in Kaohsiung, KYMCO Capital Fund I is managed by the KYMCO Group, with assets under management exceeding NT$10 billion, and has invested in Southeast Asian unicorns such as Grab.
Gains Investment Corporation, a subsidiary of China Steel Corporation, manages assets of over NT$10 billion and invests in semiconductors, optoelectronics, biotechnology, and green energy.
Unicorn Capital focuses on early-stage investments, typically investing in three to five startups per year.
In terms of alumni networks, NSYSU alumni founded SYS Angel, providing seed and Series A funding, and established the NSYSU Container Start-up Site in 2018. NSYSU also allocated NT$100 million from its endowment to establish the NSYSU Innovation and Entrepreneurship Fund, which offers operational subsidies of up to NT$10 million for each selected team.
The Southern Taiwan Interdisciplinary Venture Capital Fund, with a total size of NT$400 million (including NT$120 million from the National Development Fund), focuses on innovation in metals, marine technology, medical devices, and agriculture.
Government and Private-Sector Resources
The Youth Bureau of the Kaohsiung City Government launched the Youth Entrepreneurship Subsidy Program to support startups through two tracks: the General Subsidy and the Competitive Subsidy. The Youth Bureau also offers exhibition grants, mobile vendor brand support of up to NT$25,000, and runs the Megaport Signature Brand Renewal Competition to connect young creators with local brands and strengthen Kaohsiung’s creative industries.
The Agriculture Bureau promotes the Kaohsiung Young Farmer Entrepreneurship Incubation Program, providing up to NT$200,000 per project. The program uses project-based coaching, expert site visits, targeted support, and government resource connections to accelerate young farmers’ entrepreneurial growth.
The city government has established the Kaohsiung Youth Entrepreneurship Promotion Alliance and the O’STAR Entrepreneurship Consulting and Mentorship Program, integrating resources from industry, government, academia, and research institutions.
The Economic Development Bureau organizes Demo Day events, where selected teams may receive NT$1 million in proof-of-business validation grants and preferential loans of up to NT$10 million.
In June 2025, the National Development Council (NDC) established the National Development Fund Southern Service Office at Startup Terrace Kaohsiung to strengthen capital supply and ecosystem development. The initiative seeks to strengthen innovation capacity and accelerate progress toward Taiwan’s goal of becoming an “AI Island.” Building on the Business Angel Investment Program, the NDF collaborates with ministries on the “Top Ten NT$10 Billion Strategic Investment Programs” to provide funding and guidance that foster high-potential innovation teams and young entrepreneurs in southern Taiwan.
In the private sector, the Startup CEO Group is the largest entrepreneurial community in southern Taiwan, while Excellent Water Capital regularly hosts startup investment matchmaking events. The Meet Greater South – Asia New Bay Area Innovation x Greater South Startups exhibition connects entrepreneurial energy across northern and southern Taiwan.
Current Status of Startup Development
According to the FINDIT database, as of June 2025, Kaohsiung has 764 startups, accounting for 7.8% of Taiwan’s total, with 710 currently in operation.
The largest sector is industrial manufacturing (10.7%), followed by healthcare (8.3%), food and beverage (7.9%), and software (6.9%).
Representative funded startups include ALES Tech, Beyond Zero Recycling Technology, Footprintku, Kiao Farming, Leadership, LONGSHUN Green Energy, PORClean Nano-Biochem, Trend Link, and PET100PERCENT, demonstrating that Kaohsiung startups span semiconductors, circular economy, smart agriculture, and digital transformation, reflecting strong and diverse development momentum.
References
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New Startup Dream Network. https://startup.sme.gov.tw/home/
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Economic Development Bureau, Kaohsiung City Government. https://edbkcg.kcg.gov.tw/en/Default.aspx
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Youth Bureau, Kaohsiung City Government. https://youth.kcg.gov.tw/
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Kao, Yu-Ching (2025, July 11). NVIDIA, Foxconn Enter Kaohsiung’s Asia New Bay Area, Fueling an AI Investment Boom. USTV. https://news.ustv.com.tw/idlepage
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Kuo, Wei-Chi (2025, March 25). AMD Launches Kaohsiung R&D Center, Strengthening the City’s High-Tech Ambitions. Economic Daily News. https://money.udn.com/money/story/7307/8631418
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CNA (2024, August 29). NVIDIA and AMD Anchor Kaohsiung’s Asia New Bay Area, Elevating It Into a Global AI Hub. https://www.cna.com.tw/postwrite/chi/379958
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Ministry of Economic Affairs (2025, July 25). MOEA Drives ICT Industry Expansion in Southern Taiwan, Positioning Kaohsiung’s Asia New Bay Area as a New AI Hub. MOEA News & Releases. https://www.moea.gov.tw/MNS/populace/news/News.aspx?kind=1&menu_id=40&news_id=120023
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Special thanks to the Innovation and Incubation Center of National Kaohsiung University of Science and Technology for providing valuable insights for this article.