In recent years, Taiwan has seen a significant increase in its approved overseas investment, with figures soaring nearly 58% in the last five years. This surge, as reported by the Ministry of Economic Affairs, reflects a strategic move by Taiwanese companies to diversify their production bases and reduce their dependency on China. Between 2021 and 2025, outbound investment approvals amounted to US$148.6 billion, a marked rise from the US$94.1 billion recorded between 2016 and 2020.
The Ministry highlighted several factors contributing to this trend, including global supply chain restructuring in the wake of the COVID-19 pandemic, ongoing US-China trade tensions, and geopolitical uncertainties. Additionally, the increasing global demand for Taiwan’s electronics and information and communications technology (ICT) products has further propelled this investment growth.
The United States and ASEAN countries have become the primary destinations for Taiwanese manufacturing investments. In contrast, China’s share of Taiwan’s outbound investments has steadily decreased. Over the past five years, China accounted for just 12.9% of these investments, with a significant drop to 0.9% observed in the first five months of the current year.
Leading this investment surge is the electronic components sector, particularly semiconductor manufacturing projects in the US and Singapore. The Ministry noted that Taiwanese companies are expanding their overseas production capabilities to enhance supply chain resilience and better cater to global markets. This strategic expansion underscores Taiwan’s efforts to secure a stronger foothold in the international business landscape.