Over the last five years, Taiwan has witnessed a significant upswing in its approved overseas investments, marking a nearly 58% increase, as enterprises strive to diversify their production bases and lessen their dependence on China. The Ministry of Economic Affairs reports that from 2021 to 2025, outbound investments approved by Taiwan totaled US$148.6 billion, a notable rise from the US$94.1 billion recorded between 2016 and 2020.
This surge in overseas investment is largely attributed to the restructuring of global supply chains in the wake of the COVID-19 pandemic, escalating US-China trade tensions, geopolitical uncertainties, and an increased demand for Taiwanese electronics and ICT products. In this evolving landscape, the United States and ASEAN nations have emerged as preferred destinations for Taiwanese manufacturing investments, while China’s share of Taiwan’s outbound investments has been on a decline.
Notably, China’s portion of Taiwanese outbound investment stood at 12.9% over the past five years, but it dropped sharply to 0.9% in the first five months of the current year. This shift underscores a strategic move by Taiwanese companies to seek opportunities beyond China, emphasizing a broader diversification of their investment portfolios.
The electronics sector, particularly semiconductor manufacturing, has been at the forefront of this investment growth. Taiwanese firms have been actively expanding their production capacities overseas, with significant projects in the United States and Singapore, aiming to bolster supply chain resilience and cater more effectively to global market demands. This strategic initiative reflects a broader effort to ensure stability and adaptability in a rapidly changing economic environment.