Over the past five years, Taiwan has seen a significant increase in approved overseas investments, rising by nearly 58% as companies strive to diversify their production bases and lessen dependency on China. According to the Ministry of Economic Affairs, the approved outbound investment amounted to US$148.6 billion between 2021 and 2025, a substantial increase from the US$94.1 billion recorded between 2016 and 2020.
This surge in investment has been largely influenced by a global restructuring of supply chains in the wake of the COVID-19 pandemic, ongoing US-China trade tensions, geopolitical uncertainties, and an increasing demand for Taiwan’s electronics and information and communications technology (ICT) products. These factors have driven Taiwanese companies to look beyond China for investment opportunities.
The United States and ASEAN countries have become leading destinations for Taiwanese manufacturing investments. Meanwhile, China’s share of Taiwan’s outbound investments has continued to decline, accounting for just 12.9% over the past five years and dropping further to 0.9% in the first five months of this year.
Among the industries leading this investment growth is the electronic components sector, with a particular focus on semiconductor manufacturing projects in the US and Singapore. The Ministry of Economic Affairs notes that Taiwanese companies are expanding their production capabilities overseas to enhance supply chain resilience and meet the demands of global markets more effectively.