In a significant economic shift, Taiwan’s overseas investment approvals surged by nearly 58% over the past five years, reflecting a strategic move by Taiwanese companies to diversify production and lessen their dependence on China. The Ministry of Economic Affairs reported that approved outbound investments totaled $148.6 billion from 2021 to 2025, a notable increase from the $94.1 billion recorded between 2016 and 2020.
This uptick in investment is largely attributed to global supply chain restructuring in the aftermath of the COVID-19 pandemic, ongoing US-China trade tensions, and a volatile geopolitical landscape. Additionally, there has been a growing international demand for Taiwan’s electronics and information and communications technology (ICT) products, further fueling this investment trend. The diversification efforts have seen Taiwanese companies increasingly turn to the United States and ASEAN countries as preferred locations for manufacturing investments.
While the United States and ASEAN nations have become prominent destinations for Taiwanese investments, China’s share of Taiwan’s outbound investment has notably decreased. Over the past five years, China accounted for 12.9% of Taiwan’s overseas investments, with a sharp decline to just 0.9% in the initial five months of this year. This shift underscores a strategic pivot away from reliance on Chinese manufacturing capabilities.
The electronics sector, particularly semiconductor manufacturing, spearheaded this investment growth. Taiwanese companies have been actively expanding their semiconductor production facilities in the United States and Singapore, aiming to enhance supply chain resilience and better meet global market demands. This expansion highlights Taiwan’s commitment to reinforcing its position in the global electronics market and ensuring robust supply chains amid ongoing global uncertainties.