Approved outbound investments by the Department of Investment Review, excluding those to China, reached a record US$24.19 billion in the first half of this year, surging 169.64 percent from a year earlier, the Ministry of Economic Affairs (MOEA) said on Monday.
That was mainly driven by Taiwan Semiconductor Manufacturing Co’s (台積電) investments of US$5.26 billion in its Japanese subsidiary and US$5 billion in its US unit, as well as WT Microelectronics Co’s (文曄科技) investment of US$3.98 billion to acquire Canadian electronic components distributor Future Electronics Inc, the ministry said in a statement.
The investment amount in the first half outpaced the US$23.58 billion approved for the whole of last year, it said.
Photo: CNA
As companies continue to diversify their supply chains and reduce their dependence on China, approved investments to countries included in the government’s New Southbound Policy surged 113.23 percent to US$4.53 billion in the first six months, the ministry said.
That was led by Hon Hai Precision Industry Co’s (鴻海精密) investments of US$2.49 billion in Foxconn Singapore Pte Ltd and NT$15 billion (US$459.77 million) in Foxconn EV Singapore Holdings Pte Ltd, along with other local firms’ increased investments in Vietnam and Thailand, the ministry added.
The New Southbound Policy, introduced in 2016, is designed to enhance trade and exchanges between Taiwan and 18 nations in Southeast Asia, South Asia and Oceania.
In comparison, outbound investments to China fell 19.03 percent year-on-year to US$1.55 billion during the first six months, the ministry said.
Meanwhile, foreign direct investment (FDI) approved by the department totaled US$3.25 billion in the first half, down 49.3 percent from the same period last year and marking the lowest in six years, the ministry said, attributing it in part to a high comparison base the previous year.
FDI measures the investment activities of foreign firms, including the incorporation of a subsidiary or joint venture, a cash injection into a local unit, or mergers or acquisitions of domestic companies.
A high comparison base last year was also a factor behind the 92.3 percent annual decline in approved investments from New Southbound Policy countries to US$172.63 million during the first six months, the ministry said.
That is because in the first half of last year Singapore-based DBS Bank Ltd (星展銀行) gained approval to inject NT$52 billion in new capital into DBS Bank Taiwan (星展台灣), and Raiden APAC Pte Ltd, also based in Singapore, secured permission to inject capital of NT$3.19 billion into Taiwan Google Infrastructure Co (台灣科高基礎設施), it said.
The FDI figure excludes investments from China. The department approved US$16.37 million in investments by Chinese firms in the first six months, down 1.74 percent from a year earlier, the ministry said.
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