Over the last five years, Taiwan has witnessed a significant surge in its overseas investments, with a nearly 58% increase as businesses strive to diversify their production bases and lessen their dependency on China. This development was highlighted by the Ministry of Economic Affairs (MOEA), which reported that approved outbound investments amounted to US$148.6 billion from 2021 to 2025, a stark rise from the US$94.1 billion recorded during the 2016-2020 timeframe.
The MOEA attributed this upward trend to several global factors, including the restructuring of supply chains in the aftermath of the COVID-19 pandemic, ongoing US-China trade tensions, and prevailing geopolitical uncertainties. Additionally, the escalating demand for Taiwan’s electronics and information and communications technology (ICT) products has also played a crucial role in spurring this investment growth.
The United States and ASEAN countries have become prominent targets for Taiwanese investments, especially in the manufacturing sector. Meanwhile, the portion of Taiwan’s outbound investments directed towards China has seen a decline. Over the past five years, China accounted for 12.9% of such investments, but its share fell sharply to 0.9% in the first five months of the current year.
A significant portion of the investment growth is driven by the electronic components industry, with a particular focus on semiconductor manufacturing ventures in the US and Singapore. Companies are increasingly establishing production facilities overseas to enhance the resilience of their supply chains and to better serve global markets, according to the ministry.