Microsoft has signed a cooperation memorandum with Taiwan's Ministry of Economic Affairs to set up a cloud computing technology research center in Taiwan over the next 12 months.

As Microsoft's first major cloud computing technology research center in Asia, this new project is expected to combine the global electronics production chain built by Taiwanese ODMs and OEMs, including Quanta and Hon Hai.

According to Microsoft, this new project is aimed at helping local contract makers of electronics products develop devices and services related to cloud computing, an emerging technology that allows users to access data online that is saved in remote servers.

Steve Ballmer, CEO of Microsoft, revealed that Microsoft plans to spend USD9.5 billion in research and development projects in 2010 and a considerable portion of the investment will go to cloud computing technologies. However, neither he nor the ministry disclosed the investment for the project in Taiwan.