Japanese FDI in Taiwan Tops $900 Million, Boosting Chip and Green Energy Sectors

In 2025, Japan's direct investment in Taiwan topped nearly 900 million U.S. dollars, reaching an all-time high. This figure represents an increase of approximately 30% compared to around 700 million U.S. dollars in 2024, demonstrating the growing confidence of Japanese companies in Taiwan's economy. As a key global semiconductor supply chain hub, Taiwan has long attracted investment from Japanese enterprises. In recent years, driven by U.S.-China trade tensions and the need for supply chain restructuring, Japanese firms have accelerated their expansion into the Taiwan market.

The Japanese Chamber of Commerce and Industry, Taipei, stated that Japanese corporate investment has expanded from traditional manufacturing into forward-looking sectors such as semiconductors, artificial intelligence, and renewable energy. The chamber pointed out that technology transfer in semiconductor manufacturing equipment and materials, research and development of AI algorithms, and the integration of industrial chains for solar and wind power equipment have become key focal points of bilateral cooperation.

Taiwan possesses mature advanced industrial clusters, forming a complete supply chain ecosystem that spans wafer foundry services, packaging and testing, and component design. Japan, meanwhile, maintains global leadership in high-purity chemical materials, precision machinery, and automation equipment. By combining their strengths, the two sides can achieve technological co-creation in wafer manufacturing, AI hardware accelerator cards, and renewable energy devices, thereby enhancing industrial competitiveness.

For Taiwan, investment from Japanese companies not only brings direct capital injections, but also fosters technology transfer and talent development. It is estimated that for every dollar invested, Taiwan can create approximately 1.5 jobs and accelerate industrial upgrading. For Japan, utilizing Taiwan as a supply base for critical components helps mitigate the risks of relying on a single source and maintains supply chain resilience in the global semiconductor market.

From the perspective of Japanese policy, the government has in recent years advanced the "Act on Facilitating Overseas Investment by Japanese Enterprises" and the "