Over the last five years, Taiwan has significantly ramped up its foreign investments, with a nearly 58% increase, as part of a strategic move by companies to diversify their production bases and lessen their dependence on China. The Ministry of Economic Affairs (MOEA) reports that from 2021 to 2025, Taiwan’s approved overseas investments amounted to $148.6 billion. This marks a substantial rise from the $94.1 billion recorded during the 2016-2020 period.
This surge in outbound investment is largely attributed to the reshaping of global supply chains in the aftermath of the COVID-19 pandemic, ongoing trade tensions between the United States and China, geopolitical uncertainties, and the heightened demand for Taiwan’s electronics and ICT products. These factors have prompted Taiwanese companies to seek alternative production locations to enhance supply chain resilience.
The United States and ASEAN nations have emerged as the primary destinations for Taiwanese manufacturing investments, as businesses aim to capitalize on these regions’ favorable conditions. Concurrently, the proportion of Taiwan’s outbound investments flowing into China has seen a decline. Over the past five years, China accounted for 12.9% of Taiwan’s foreign investments, which sharply fell to just 0.9% in the initial five months of this year.
Leading the charge in this investment growth is the electronic components sector, especially projects related to semiconductor manufacturing in the US and Singapore. The MOEA highlights that Taiwanese companies are expanding their production capabilities overseas, not only to bolster their supply chain resilience but also to better serve their global markets by establishing a more diversified operational presence.