Taiwan has seen a significant boost in its overseas investments, with a nearly 58% increase over the last five years, as businesses seek to diversify their production bases and lessen their dependence on China. This shift is highlighted by data from the Ministry of Economic Affairs, revealing that from 2021 to 2025, approved foreign investments amounted to $148.6 billion, a substantial rise from the $94.1 billion recorded between 2016 and 2020.
The Ministry attributes this surge to a worldwide shake-up in supply chains triggered by several factors: the aftermath of the COVID-19 pandemic, ongoing US-China trade tensions, geopolitical instability, and a heightened demand for Taiwan’s electronics and information and communications technology (ICT) products. These dynamics have compelled Taiwanese companies to reassess their production strategies and seek stability and growth beyond China’s borders.
In this context, the United States and ASEAN countries have emerged as preferred destinations for Taiwanese manufacturers looking to invest and expand their operations. Meanwhile, China’s portion of Taiwan’s outbound investment has been on the decline. Over the past five years, China accounted for just 12.9% of these investments, with its share dwindling to a mere 0.9% in the initial five months of the current year.
A significant driver of this investment growth is the electronic components sector, notably semiconductor manufacturing projects set up in the US and Singapore. Taiwanese companies are increasingly setting up production facilities overseas to enhance the resilience of their supply chains and to better serve international markets, ensuring they remain competitive in a fast-evolving global landscape.