The Cabinet of Taiwan announced yesterday (April 23) that it will invest NT$ 45 billion ($1.3 billion) to expand and upgrade the island's green industries including solar and wind energy, with the aim to help reduce the island’s fuel consumption and carbon footprint.

Windfarms in Kuanyin town of Taiwan

The Cabinet said the project is expected to spur NT$200 billion ($5.5 billion) in private investment over the next five years, while didn’t disclose a breakdown of spending, except that the money will be spent on developing related technologies, subsidizing manufacturers and building energy-saving schools and other installations.

The Light-Emitting Diode (LED) industry will be an important part of the five-year project, said the Government Information Office in a statement. The LED lights are a new-generation green light source with high luminous efficiency and long lifespan, and they have great export potential for their wide applications including in outdoor and automobile lighting as well as cell phones and digital cameras because of their compact size and ultra-brightness.

The LED industry of the island had generated revenue of 54 billion ($1.6 billion) in last year, second only to Japan, according to the government-funded Industrial Technology Research Institute.

The government has urged LED makers of the island to put more emphasis on developing their own technology to improve their profit margins, as well as enhance the competitiveness against foreign patent-holders.