The 8MW project is the first phase of the larger 128MW Formosa 1 project, located off Miaoli county, in northwest Taiwan.
Siemens will manufacture two 4MW turbines to be installed in 2016. The remaining 120MW is due to be commissioned by 2020.
Danish consultancy firm K2 Management helped to negotiate the deal for what could be the country's first offshore wind project. K2 is advising Formosa Wind Power on project design and contracts.
In 2013, Taiwan's Ministry of Economic Affairs (MOEA) signed an agreement with Formosa Wind Power and another developer, Fuhai Wind Farm, to test between four to six offshore wind turbines off the country's west coast.
The Fuhai project was planning to install its two-turbine pilot this year. Taiwan is targettting 1.2GW of wind capacity by 2020, increasing to 3GW by 2030.