TAIPEI, (TaiwanToday) – Overseas investment by Taiwanese firms between 2021 and 2025 has increased 57.8 percent over the previous five-year period to USD 148.6 billion, the Ministry of Economic Affairs (MOEA) said July 14.
The MOEA attributed the development to global supply chain restructuring triggered by the COVID-19 pandemic, US-China trade friction and geopolitical challenges.
The booming demand for Taiwan-made high-tech products due to emerging technologies has also prompted local firms to expand their presence in overseas markets, the ministry added.
According to the MOEA, local firms have diversified their investment away from China given the increasing need to enhance global supply chain resilience.
British Caribbean territories accounted for 22.8 percent of Taiwan’s outbound investment during the period, mainly financial and insurance investments made via overseas holding companies to enhance asset allocation flexibility and diversify financial risks.
The US and the Association of Southeast Asian Nations member states made-up 20.5 and 20 percent of the total, respectively. Investment was primarily in the manufacturing sector, especially in semiconductors, computers, electronic components and parts, and logistics.
During the same period, Taiwanese investment in China averaged only 12.9 percent of the total, down from the all-time high of 83.8 percent in 2010, the MOEA said, adding that the figure further declined to 0.9 percent in the first five months of this year.