TSMC-Led Mega Deals Drive 133% Surge in Outbound Investment in First Five Months

(Taipei, June 15 — Reporter Tseng Yun-ting) Taiwan's Ministry of Economic Affairs announced today that approved foreign investment into Taiwan from January to May 2024 reached $8.433 billion, a 53.82% year-on-year increase. Outbound investment surged to $35.611 billion, up 133.94% compared to the same period last year, largely driven by major projects such as TSMC's $30 billion capital increase in its overseas subsidiaries. In contrast, investment into mainland China dropped to $310 million, a 32.3% year-on-year decline.

The Investment Commission of the Ministry of Economic Affairs released statistics today on approved foreign investment, investment from mainland China, outbound investment, and investment into mainland China for May 2024.

According to the Commission, in May alone, 183 foreign investment cases were approved, totaling approximately $1.125 billion. From January to May, 979 cases were approved, amounting to $8.433 billion, a 53.82% increase from the same period last year. Key drivers included Singapore-based Micron Semiconductor Asia Pte. Ltd. investing approximately $4.33 billion in Taiwan's Micron Memory via debt-to-equity conversion, U.S. Microsoft Corporation increasing capital in Microsoft Taiwan by $273 million, and Danish Orsted Wind Power TW Holding A/S investing $222 million in Wozhou Northwest Changhua Holding.

By source country, Singapore led inbound investment with $5.316 billion (63.04% of total), a more than 16-fold increase year-on-year. Other major sources included British Virgin Islands ($1.004 billion), the United States ($748 million), the United Kingdom ($311 million), and Denmark ($221 million).

By sector, electronic component manufacturing attracted $4.514 billion (53.53% of total), a more than 21-fold year-on-year increase. Financial and insurance services ranked second with $1.987 billion (23.56%).

Regarding investment from mainland China, only two cases totaling $33,000 were approved in May. From January to May, eight cases totaling $1.131 million were approved, down 98.83% year-on-year.

For outbound investment, 64 cases totaling $1.527 billion were approved in May. From January to May, 271 cases were approved, totaling $35.611 billion, a 133.94% year-on-year increase. The Commission noted that TSMC's $30 billion capital increase in TSMC Global Ltd. in the British Virgin Islands, along with Wistron and ASUS each injecting $500 million into their U.S. and Singapore subsidiaries, were the main drivers.

Su Chi-Yen, Director-General of the Investment Commission, explained that TSMC has made multiple investments into TSMC Global Ltd., primarily to earn interest through bank time deposits and U.S. dollar-denominated bonds, while also reducing foreign exchange hedging costs.

For investment into mainland China, 22 cases totaling $473.11 million were approved in May. From January to May, 96 cases were approved, totaling $3.10 billion, a 32.3% decrease from the same period last year. (Edited by Yang Kai-Xiang) 1150615