Led by TSMC, January-July outbound investments soar 200%

Taipei, Aug. 18 (CNA) Outbound investments approved by Taiwan's government surged 200 percent from a year earlier during the January-July period largely due to Taiwan Semiconductor Manufacturing Co. (TSMC) spending heavily overseas, according to the Ministry of Economic Affairs (MOEA).

Data released by the MOEA's Department of Investment Review on Monday showed approved outbound investments for the first seven months of this year totaled US$61.26 billion in 395 applications, up 208.43 percent from a year earlier.

The MOEA said the significant growth came after TSMC, the world's largest contract chipmaker, secured approval to raise capital investments by US$20 billion in its U.S. subsidiary TSMC Arizona Corp., which runs the company's wafer fab operations in the U.S. state of Arizona and to invest US$30 billion in the Cayman Islands-registered TSMC Global Ltd., which is in charge of the chipmaker's financial investments worldwide.

The MOEA added the growth also reflected a plan by memory chip supplier Nanya Technology Corp. to raise investments by US$1 billion in its Cayman Islands-incorporated subsidiary and another plan by power management solution provider Lite-On Technology Corp. to inject US$919 million into its U.S. unit.

Meanwhile, foreign direct investment (FDI) into Taiwan over the same period rose 78.13 percent from a year earlier to US$13.92 billion, largely due to Singapore-registered Micron Semiconductor Asia Pte. Ltd., a subsidiary of U.S.-based memory chip supplier Micron Technology Ltd., obtaining the green light to invest US$7.45 billion in Taiwan.

In addition, Netherlands-based MIT Hai Long Wind Power B.V. secured approval to invest US$1.05 billion in Taiwan for green power development, according to the MOEA.

The MOEA said Singapore ranked as the largest foreign investor in Taiwan from January to July, by investing US$8.66 billion or 62.23 percent of the total FDI, ahead of the Netherlands (US$1.22 billion), the British Virgin Islands and the Cayman Islands (US$1.19 billion), the United States (US$781 million) and the United Kingdom (US$630 million).

The MOEA added that the local electronics component industry was the largest destination for these foreign investors, accounting for 56.27 percent of the total approved FDI, before the financial and insurance industry, which made up 16.9 percent of the total.

As for China-bound investments, Taiwanese investors secured approval for US$572 million worth of applications during the seven-month period, down 25.87 percent from a year earlier, the MOEA said.

The Chinese retail and wholesale, electronics component, financial and insurance businesses were the top three destinations for Taiwanese investors during the same period, according to the MOEA.

The MOEA said the government also approved 12 applications filed by Chinese investors wishing to invest US$4.07 million in Taiwan, plunging 95.97 percent from a year earlier.