Taiwan has experienced a significant surge in overseas investment, with approved outbound investments climbing by nearly 58% over the past five years. This increase, documented by the Ministry of Economic Affairs, reflects the island’s strategic move to diversify production and lessen dependence on China. The total approved investment abroad reached $148.6 billion from 2021 to 2025, up from $94.1 billion in the 2016-2020 period.
Several factors have fueled this rise in overseas investments, including the restructuring of global supply chains in the wake of the COVID-19 pandemic, ongoing US-China trade tensions, and other geopolitical uncertainties. Additionally, there is a growing demand for Taiwan’s electronics and ICT products, which has further accelerated the need for Taiwanese companies to expand their manufacturing footprint globally.
The United States and ASEAN countries have become the primary targets for Taiwanese manufacturing investments. In contrast, the share of Taiwan’s outbound investment directed towards China has continued to diminish. Over the past five years, China accounted for 12.9% of Taiwan’s overseas investments, but this number sharply fell to just 0.9% in the first five months of the current year.
A significant portion of this investment growth is spearheaded by the electronic components sector, with semiconductor manufacturing projects leading the charge in the US and Singapore. By expanding their production capabilities overseas, Taiwanese companies aim to bolster their supply chain resilience and enhance their ability to serve global markets effectively.