The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.  The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption.  The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

Executive Summary

Taiwan is located at the heart of the Asia-Pacific region and possesses vibrant R&D innovation capabilities, as well as outstanding manufacturing prowess. Taiwan has always been a steadfast and trustworthy member of the global high-tech supply chain and remains the top destination for transnational corporations setting up centers of innovation or operational headquarters in Asia, according to the Department of Investment Services of Ministry of Economic Affairs of Taiwan.

Taiwan’s investment environment has long been recognized by the global community and is ranked third globally – and second in Asia – according to the Investment Environment Risk Assessment Report released in April 2022 by “Business Environment Risk Intelligence (BERI).” In the yearbook of the International Institute for Management Development (IMD), Taiwan ranked seventh in World Competitiveness in 2022.

Taiwan and U.S. industries also enjoy a close and long-standing working relationship, and the United States remains Taiwan’s third largest source of inbound investments. As of the end of June 2022, U.S. investments reached a cumulative total of US$25.7 billion. A few projects are worth noting, including Micron’s Center of Excellence for DRAM in Taiwan, Entegris’ 2021 announcement of a new plant aimed at becoming the world’s largest manufacturing base, and Synopsys’ AI Chip Design Lab, which has accelerated the formation of a local AI industry chain.

To align with trends such as digitalization and net zero emissions, Taiwan will be launching the Compound Semiconductor Project (2022-2025), which is expected to accelerate development of key processing equipment for 8-inch wafers, as well as facilitate autonomous production of silicon carbide (SiC) powders and 8-inch SiC wafers.

On the green energy front, Taiwan is aiming to reach 20GW of accumulated installation capacity of solar photovoltaic energy equipment and 6.5 GW in wind power by 2025, driving approximately NT$2.2 trillion in related green energy investments.

Regarding fields such as biotechnology and medicine, next-generation vehicles and IoT, Taiwan continues to promote innovative projects and provide incentives, such as tax reduction, tariff exemption, and R&D subsidies. Opportunities in the future for key industry collaboration between Taiwan and U.S. companies are vast and continue to grow. The U.S. Department of State’s Investment Climate Statements liprovide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.

Topics include Openness to Investment, Legal and Regulatory systems, Dispute Resolution, Intellectual Property Rights, Transparency, Performance Requirements, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

These statements highlight persistent barriers to further U.S. investment. Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthy business environment for the digital economy. To access the ICS, visit the U.S. Department of Department of State’s Investment Climate Statement website.