In the first half of 2024, Taiwan’s outbound investments surged by 170 percent compared to the previous year, largely driven by Taiwan Semiconductor Manufacturing Co. (TSMC), according to the Ministry of Economic Affairs (MOEA).
Data from the MOEA’s Department of Investment Review showed that approved outbound investments totaled US$24.19 billion from January to June, surpassing the US$23.58 billion approved for the entirety of 2023.
During the six-month period, the number of approved outbound investment projects also increased by 38.15 percent year-on-year to 344.
TSMC played a significant role in the surge, with approvals for investments totaling US$5.26 billion into its joint venture Japan Advanced Semiconductor Manufacturing, Inc. and US$5.0 billion into its U.S. subsidiary TSMC Arizona Corp. This move is part of TSMC’s strategy to diversify production and establish advanced wafer fabs in the U.S., Japan, and Germany to mitigate geopolitical risks.
Another notable investment approval was from semiconductor distributor WT Microelectronics Co., which received US$3.98 billion to acquire its Canadian counterpart Future Electronics Inc.
As global companies seek to diversify supply chains away from China, approved investments destined for Southeast Asia and South Asia also saw significant growth, rising by 113.23 percent to US$4.53 billion in the first half of the year compared to the same period last year. Hon Hai Precision Industry Co., known globally as Foxconn, contributed to this trend with investments in subsidiaries in Singapore.
Despite the overall increase in outbound investments, Taiwanese investments in China decreased by 19.03 percent year-on-year to US$1.55 billion. Meanwhile, direct investments by foreign companies in Taiwan fell sharply by 49.30 percent to US$3.25 billion, attributed by the department to a high comparison base in the first half of 2023.
Approved investments from China totaled approximately US$16.37 million, down 1.74 percent from the previous year. Since Taiwan lifted its ban on Chinese investments in June 2009, the government has approved about US$2.61 billion in Chinese funds, with significant amounts directed towards the retail and wholesale sectors, as well as electronics components.
