Now that Europe, Japan and the U.S. are luring chipmakers to their shores with incentives and tax breaks in a bid to disrupt Taiwan's and South Korea's monopoly on leading-edge chipmaking, Taiwan is fighting back.Also, the government will give a 5% tax break to companies that purchase advanced manufacturing equipment.At press time it was unclear how much Taiwanese companies need to invest in R&D or production tools to get the tax cuts and which R&D and manufacturing equipment the government considers advanced enough to provide the tax breaks.It also makes Taiwan more attractive to companies like Alchip, which designs chips in Taiwan (which is set to receive a 25% tax break if it invests enough in R&D), and Micron that operates two major fabs filled with boatload of expensive wafer production equipment (which is set to get a 5% tax cut).Taiwan's government does not exactly follow its peers from the U.S, Japan and Europe with direct subsidies and tax breaks for chipmakers."