Approved FDI in 2020 tops US$5 billion on wind power investment

09/21/2020 06:28 PM
To activate the text-to-speech service, please first agree to the privacy policy below.

Taipei, Sept. 21 (CNA) With several companies from overseas keen to pour money into Taiwan's offshore wind power industry, foreign direct investment (FDI) approved by the government surpassed US$5 billion in the first eight months of this year, the Investment Commission said Monday.

However, the total FDI for the eight month period fell about 12 percent from a year earlier on a high comparison basis over the same period of last year, when U.S.-based dynamic random access memory (DRAM) maker Micron Technology Inc. raised its investment in its subsidiary in Taiwan, the commission said.

Data compiled by the commission showed that approved FDI in Taiwan for the eight months totaled US$5.72 billion, down 12.29 percent from a year earlier, when Micron, through its Netherlands unit Micron Technology B.V. obtained a permit to invest NT$66 billion (US$2.26 billion) in Taiwan.

In August alone, foreign companies, such as Denmark-based Orsted Wind Power and Macquarie Corporate Holdings, which secured a greenlight to invest NT$17 billion and NT$6.2 billion, respectively, in Taiwan's offshore wind energy industry at a time when the government is pushing for renewable energy development, pushed up the monthly total to US$1.3 billion.

In the eight months, the commission said, the number of approved FDI applications fell 4.04 percent from a year earlier to 2,256.

The commission said approved investments from the countries under the government's New Southbound Policy, such as members of the Association of Southeast Asian Nations (ASEAN), Australia, New Zealand and India, fell 65.13 percent from a year earlier to US$275 million also in the wake of a high comparison base over the same period of last year.

The high comparison base of last year came after Australia and New Zealand Banking Group and Singapore-based DBS Bank received a permit to pour NT$16 billion and NT$2.25 billion into Taiwan, the commission said.

The commission said approved investment from China for the eight months rose 54.2 percent from a year earlier to US$118 million as several China-based tech companies secured permits to move funds to Taiwan's industries, including printed circuit board and semiconductor manufacturing.

Since the government lifted a ban on direct Chinese investment in Taiwan on June 30, 2009, the commission has approved US$2.4 billion in investments from China in 1,442 projects, the commission said.

Approved outbound investments for the eight month period rose 39.52 percent from a year earlier to US$6.31 billion and the growth largely reflected an approved project by multi-layer ceramic capacitors (MLCC) maker Yageo Corp. to acquire its U.S. counterpart Kemet Corp. for US$1.356 billion, the commission said.

In the eight months, the value of the approved applications for Taiwanese companies to invest in China rose 49.54 percent from a year earlier to US$3.86 billion largely in electronics, financial/insurance, and retail/wholesale businesses, the commission said.

(By Frances Huang)

Enditem/AW

    0:00
    /
    0:00
    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.