In a significant shift over the last five years, Taiwan has seen a nearly 58% increase in its approved overseas investments, reflecting a strategic move by businesses to diversify production and lessen dependence on China. The Ministry of Economic Affairs (MOEA) reports that from 2021 to 2025, outbound investments reached $148.6 billion, a substantial rise from the $94.1 billion recorded between 2016 and 2020.
This uptick in investment is attributed to several key global developments. The restructuring of supply chains in the wake of the COVID-19 pandemic, escalating trade tensions between the United States and China, geopolitical uncertainties, and the rising demand for Taiwan’s electronics and information and communications technology (ICT) products have all been significant factors influencing this trend.
Prominent among the new destinations for Taiwanese investment are the United States and ASEAN countries, which have emerged as preferred locations for manufacturing expansion. Meanwhile, Taiwan’s outbound investment in China has seen a notable decline. Over the past five years, China’s share of Taiwan’s overseas investments has fallen to 12.9%, with a further drop to 0.9% observed in the first five months of the current year.
The electronic components sector, especially semiconductor manufacturing, has led this growth in overseas investment. Taiwanese companies are focused on expanding their production capabilities in countries like the US and Singapore, aiming to bolster supply chain resilience and enhance their ability to meet global market demands.