Taiwanese foreign investment surges 58% in five years, but China share drops

Taiwanese companies significantly boosted their overseas investments over the past five years, pouring $148.6 billion into foreign markets between 2021 and 2025. This represents a substantial 57.8% increase compared to the preceding five-year period, according to the island's Ministry of Economic Affairs (MOEA).

The investment landscape has seen a dramatic shift, with mainland China's share of Taiwanese foreign investment plummeting to an average of just 12.9%. This marks a steep decline from its previous dominant position. The MOEA attributes this change to a global emphasis on supply chain resilience and a strategic move towards more diversified regional deployment by Taiwanese firms.

In contrast, the Caribbean British territories emerged as the leading destination for approved investments, accounting for an average of 22.8% of the total. This surge is largely due to the establishment and expansion of holding companies that allow Taiwanese firms to manage their global assets and diversify financial risks more flexibly. The United States followed closely with 20.5%, and member nations of the Association of Southeast Asian Nations (ASEAN) attracted 20%. These destinations have benefited from Taiwanese companies' efforts to accelerate localized production and reduce reliance on single markets.

The reconfiguration is also evident in trade figures. In the first half of 2026, the U.S. absorbed 32% of Taiwan's exports, while the combined share of China and Hong Kong dropped to 23.8%. This shift is partly driven by the booming artificial intelligence sector, where U.S. companies like Nvidia rely heavily on Taiwan's TSMC for advanced chip manufacturing and Foxconn for server assembly. Consequently, Taiwanese investment in the U.S. is heavily concentrated in manufacturing, particularly electronic components, which saw a significant increase in investment between 2021 and 2025.