Taiwan has seen a significant surge in its approved overseas investments, jumping nearly 58% over the last five years as companies seek to diversify their production lines and lessen dependence on China. The Ministry of Economic Affairs (MOEA) reported that from 2021 to 2025, Taiwan’s approved outbound investment amounted to US$148.6 billion, up from US$94.1 billion during the 2016-2020 period.
This increase is largely attributed to various global factors such as the restructuring of supply chains following the COVID-19 pandemic, ongoing trade tensions between the US and China, geopolitical uncertainties, and a growing demand for Taiwan’s electronics and information and communications technology (ICT) products. These dynamics have prompted Taiwanese companies to explore new manufacturing destinations.
The United States and ASEAN countries have emerged as the top recipients of Taiwanese investment, marking a shift in Taiwan’s strategic focus. Notably, the proportion of Taiwan’s outbound investment going to China has diminished, making up just 12.9% over the past five years. In a striking development, China’s share plummeted to only 0.9% in the first five months of the current year.
The electronics components sector has been at the forefront of this investment growth, with semiconductor manufacturing projects in the US and Singapore leading the charge. The MOEA highlighted that businesses are expanding their production facilities abroad to bolster supply chain resilience and enhance their ability to meet global market demands.