Taiwan’s Ministry of Economic Affairs (MOEA) approved six investment cases totaling NT$13.6 billion (US$424 million) in inbound foreign investments and US$999 million in outbound investments.

Dutch semiconductor equipment maker ASML will invest NT$2.62 billion (US$81.6 million) in its Taiwan unit, , which specializes in laser light source equipment.

Japan’s Sumitomo Corp plans to increase its capital in Sumitronics Taiwan Co Ltd by NT$2.27 billion (US$70.7 million) to expand its semiconductor materials and electronic components business.

In addition, Stonepeak Oceanview (Cayman) Holdings Co. will invest NT$8.75 billion (US$271 million), with NT$8.3 billion (US$258 million) directed to wind power development through Formosa 2 Development Co Ltd.

On the outbound side, Taiwan’s Acer Inc will acquire Embedded City Ltd in the Cayman Islands for US$86.05 million to strengthen its industrial computing sector through Posiflex Technology, Inc.

Yageo Corp is acquiring Japan’s Shibaura Electronics Co Ltd for US$521.7 million, while ASMedia Technology Inc will purchase US-based Techpoint Inc for US$391 million to enhance their operations.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Taiwan maintains magnetism for foreign semiconductor investments despite global diversification

ASML and Sumitomo’s investments in Taiwan highlight the island’s enduring centrality in global semiconductor production, even as countries push to diversify supply chains.

Taiwan’s semiconductor industry remains a “rare success story,” with companies like TSMC accounting for over 90% of advanced semiconductor manufacturing capacity globally 1.

These investments come amid massive diversification efforts, including $540 billion in U.S. semiconductor investments since 2020 2 and Japan’s push to revitalize its semiconductor industry after seeing its global production share fall from over 50% in the 1980s to just 9% by 2022 3.

The continued flow of capital into Taiwan from key equipment and materials suppliers like ASML and Sumitomo signals that geographic diversification complements rather than replaces Taiwan’s semiconductor ecosystem.

Despite geopolitical tensions, Taiwan’s sophisticated industrial clustering in Hsinchu Science Park continues to draw foreign investment 4.

2️⃣ Bilateral investments reflect Taiwan’s evolving position in global semiconductor value chain

The approval of both inbound and outbound investments demonstrates Taiwan’s shift from being primarily a manufacturing hub to becoming an active global investor in semiconductor technology.