Approved outbound investment hits new high in 2024

Taipei, Jan. 15 (CNA) With contract chipmaker Taiwan Semiconductor Co. (TSMC) investing huge amounts on building advanced fabs in the United States and Japan, approved outbound investment from Taiwanese firms hit a new high in 2024, the Department of Investment Review under the Ministry of Economic Affairs (MOEA) said Wednesday.

The department approved about US$44.93 billion in outbound investment in 2024, soaring 90.57 percent from a year earlier, smashing the previous record of US$23.58 billion in 2023.

The MOEA said the surge largely came after TSMC secured approval to raise its investment in the United States and Japan by US$12.5 billion and US$52.62 billion, respectively, last year.

In addition, semiconductor distributor WT Microelectronics Co. also obtained approval to spend US$3.98 billion acquiring Canadian-based Future Electronics Inc., the authorities said.

In 2024, the department approved US$8.72 billion in investments in countries under the government's the New Southbound Policy, up 57.42 percent from a year earlier, with Singapore, Vietnam and Malaysia the main destinations.

The New Southbound Policy, introduced in 2016, aims to enhance trade and exchanges between Taiwan and 18 countries in Southeast Asia and South Asia, as well as Australia and New Zealand, in a bid to reduce Taiwan's dependence on China.

As for China-bound investment the approved amount totaled US$3.65 billion in 2024, up 20.33 percent from a year earlier, due to an increase in acquisitions and mergers by Taiwanese investors, the department said.

In 2024, Taiwan approved US$7.86 billion in direct foreign investments, down 30.18 percent from a year earlier due to a relatively high comparison base in 2023, despite a large amount of investment from multinational firms such as semiconductor equipment supplier ASML Holding N.V. and software giant Microsoft Corp.

Approved inbound investment from China jumped 901.04 percent from a year earlier to US$297 million in 2024 as China-owned Cloud Network Technology Singapore Pte Ltd. was given approval to raise investment in its branch in Taiwan by NT$9 billion (US$273 million).

Since Taiwan lifted a ban on Chinese investment in June 2009, the government has approved about US$2.89 billion in funds from China, according to the department.