TAIPEI TIMES》 Investments to China decrease further

Taipei Times reports that Taiwanese firms’ China investments have fallen further, now accounting for less than 1% of their total foreign investment. Data from Taiwan’s Ministry of Economic Affairs and the Department of Investment Review show that in the first five months of 2026, Taiwan’s total overseas investments reached US$35.92 billion, while investments outside China were US$35.61 billion, up 133.94% year-on-year. Capital allocated to China totaled US$310.3 million, down 32.3% and about 0.86% of the total. The article cites major projects including TSMC’s US$30 billion injection into an overseas subsidiary and Wiwynn’s US$500 million investment in US units. It attributes the shift to AI supply-chain positioning and “non-red” sourcing efforts, alongside weaker expectations for China’s domestic demand.