Did you know that the value of approved FDI into Taiwan hit 13.3 billion USD in 2022?* Of that, almost 4 million USD was from companies in the United States. Let’s take a look at some of the top manufacturing opportunities in Taiwan for foreign investors in 2023.
Taiwan’s thriving semiconductor industry is renowned worldwide. However, the equipment to support the industry is often sourced from foreign companies.
In 2022, the French company Air Liquide announced that they would construct three plants in Taiwan to supply two of the world’s largest semiconductor manufacturers. In addition, Air Liquide Far Eastern, a joint venture between Air Liquide and Far Eastern Group, will invest approximately 500 million Euros in these cutting-edge production facilities that contribute to the development of electronics.
2. Smart machines and automation solutions
Taiwan is supporting the rise of Industry 4.0 by utilizing its existing expertise in the machinery and machine tools industries.
Taiwan regards US producers of integration and automation solutions, integrated machine tools, industrial robots, and manufacturing technologies as highly competitive and there are investment opportunities in these fields.
With recent changes in global trends, Taiwan’s small and medium-sized enterprises are transforming and upgrading towards intelligence and digitalization to develop the “Smart Machinery Cloud Platform”, an application store for the machinery industry helping customers to better realize integrated, remote, service-oriented manufacturing.
3. 5G and data services
Taiwan continues to invest in 5G technologies to expand its reach around the island. A tremendous amount of data is being generated in real-time, prompting operators to invest in the market.
Cloud service providers are also moving into Taiwan. For example, in 2022, Amazon Web Services launched its first local zone in Taipei. Taiwan has seen a significant increase in cloud services, which initiated the formation of a cloud alliance between TSMC and companies like AWS, cadence, Google, Siemens, Azure, and Synopsys.
Taiwan has dedicated Free Trade Zones, such as Cargo Park FTZ, Kaohsiung Port FTZ, Keelung Port FTZ, and Taipei Port FTZ, among others, which offer tax incentives to attract foreign investors to establish operations and processing activities.
4. Renewable energy
Taiwan’s leaders have committed to boosting the use of renewable energy, and there are plans to generate 20% of the island’s energy from renewable sources by 2025. The value of Taiwan’s current unfinished wind and solar projects is around $82.9 billion, among the highest counts in Asia. Besides this, equipment and materials for wind and solar power are also increasingly popular among foreign investors.
With the growth of these potential manufacturing opportunities, there has never been a better time to start doing business in Taiwan. Lone Star can help source products or components, or even set up a production line for companies looking to outsource production to Taiwan to streamline manufacturing, ensure deadlines are met, and keep costs down. Our professional and experienced team understands your options and knows how to communicate and connect with multiple partners to find the best solutions. Lone Star is an extension of your team in Asia, standing in your corner and getting the answers you need.
Check out our previous posts to learn more about What Issues do Companies Face When Manufacturing Goods in China or Taiwan? and How Lone Star Can Help You Outsource Production to Taiwan
Check out the previous article about Why we’re better than Alibaba
*excluding FDI from mainland China