Taipei--The value of government approved foreign direct investments in Taiwan plunged more than 31 percent in the first half of 2017 from a year earlier, due mainly to a high comparison base, according to the Investment Commission.
In the first six months of the year, approved FDI in Taiwan totaled US$3.77 billion, a year-on-year decline of 31.44 percent, while the number of approved FDI applications dropped 4.12 percent from a year earlier to 1,558, the commission's data showed.
Chu Ping (??), a section chief at the commission, said that Dutch-registered Micron Technology B.V. last year invested about US$3.33 billion in DRAM chip maker Inotera Memories Inc. (???), which boosted Micron's stake in the Taiwanese company from 33 percent to 100 percent.
The massive investment by Micron, which was approved in May 2016 and completed in December, created a high comparison base, Chu said, adding that outside the Micron investment, FDI in Taiwan remained steady.
In the first half of 2017, the electronics component sector had the largest approved foreign investment of US$1.81 billion from 38 applicants, including Micron.
Meanwhile, the local retail and wholesale sector saw a total of 530 approved investment applications, worth US$384 million, while the financial/insurance and real estate sectors registered 117 and 73 approved foreign investment applications, respectively, valued at US$332 million and US$299 million.
Meanwhile, approved Chinese investments in Taiwan during the six-month period totaled US$154 million, down 2.01 percent from a year earlier, the commission said. The number of approved Chinese investment cases fell 14 percent year-on-year to 67, the commission added.
Since the Taiwan government lifted a ban on Chinese investments on June 30, 2009, the aggregate approved investment has been US$1.84 billion, according to the commission's data valid as of the end of June.
As for Taiwan's investments overseas, the approved amount for the first six months of this year was US$5.38 billion, a decline of 34.52 percent from a year earlier due to a high comparison base, the commission said.
In May, the commission approved an application by Hon Hai Group (????) to inject about US$3.5 billion into Sharp Corp. of Japan, which boosted the comparison base. The acquisition of a 66 percent stake in the Japanese electronics company was completed in August.
The commission said that the value of approved China-bound investments in the first half of the year was US$4.19 billion, up 2.22 percent from a year earlier, with the number rising more than 110 percent year-on-year to 258.
Source: Focus Taiwan News Channel