Taiwanese companies have significantly increased their investment abroad over the past five years, with a nearly 58% rise in approved overseas investments, as they seek to diversify their production bases and lessen their dependence on China. The Ministry of Economic Affairs reported that outbound investment from Taiwan amounted to $148.6 billion between 2021 and 2025, compared to $94.1 billion during the 2016-2020 period.
This surge in investment is attributed to several global factors, including the restructuring of supply chains in the wake of the COVID-19 pandemic, ongoing trade tensions between the United States and China, and geopolitical uncertainties. Additionally, the growing global demand for Taiwan’s electronics and information and communications technology (ICT) products has further propelled this trend.
The United States and ASEAN nations have emerged as key destinations for these Taiwanese investments, particularly in manufacturing. Meanwhile, China’s share of Taiwan’s outbound investment has seen a noticeable decline. Over the last five years, China accounted for just 12.9% of Taiwan’s overseas investments, dropping sharply to 0.9% in the first five months of this year.
The electronic components industry, especially semiconductor manufacturing, is at the forefront of this investment growth. Taiwanese companies are increasingly expanding their production capabilities in the US and Singapore to enhance their supply chain resilience and better meet the demands of global markets. This strategic shift underscores Taiwan’s efforts to remain competitive and secure its economic interests amid shifting global dynamics.