US Invested 1.2 Trillion Won in Taiwan Last Year... 134% Increase from Previous Year

Highest Amount Since 2008
Supply Chain Diversification and Preparation for Geopolitical Risks

Last year, U.S. investment in Taiwan surged by 134% compared to the previous year. This is interpreted as an effort to prepare for supply chain changes and geopolitical risks through partnerships with local companies.

On the 31st, Hong Kong's South China Morning Post (SCMP) reported, citing statistics from the Taiwanese government, that the U.S. approved approximately $932 million (about 1.2446 trillion KRW) in investments in Taiwan last year. This figure not only represents a more than 134% increase compared to $398 million in 2022 but is also the highest single-year amount since 2008 ($2.8 billion).

[Image source=AFP Yonhap News]

SCMP explained, "U.S.-based tech giants such as Google, Qualcomm, and Micron have increased their investments in Taiwan over the past decade," adding, "Some of this is to secure relatively affordable engineering talent in Taiwan."

Patrick Lin, president of the American Chamber of Commerce in Taiwan (AmCham), told SCMP, "U.S.-headquartered companies are collaborating with Taiwanese partners as part of supply chain diversification and reducing dependence on a single region," adding, "They are likely forming strategic partnerships to ensure stable supply of key components." He emphasized, "Strengthening these relationships can help navigate potential disruptions in the global supply chain."

In a recent survey conducted by AmCham among its 580 members, 81% of respondents expressed confidence in Taiwan's economic outlook for this year. Forty-one percent anticipated additional investments this year, while 51% expected to maintain current levels. Regarding the most important issue related to Taiwan's future, 46% cited geopolitical uncertainty.