Taipei: Taiwan’s direct overseas investments reached a new high in 2024, driven by significant investments from major manufacturers, including Taiwan Semiconductor Manufacturing Co. (TSMC), as they seek to expand globally, according to the central bank.
According to Focus Taiwan, central bank data revealed that the country’s net increase in direct overseas investments in 2024 was a record US$21.05 billion. Additionally, the net increase in overseas investments by Taiwanese residents also set a record at US$31.98 billion.
Chen Fei-wen, deputy director of the central bank’s Department of Economic Research, attributed the growth primarily to TSMC’s expansion efforts in the U.S. and Japan, citing statistics from the Ministry of Economic Affairs. Contributions from Vanguard International Semiconductor Corp., semiconductor distributor WT Microelectronics Co., and iPhone assembler Hon Hai Precision Industry Co. also played a role in this increase.
The central bank reported that the portfolio investment account exhibited a net asset increase of US$66.33 billion in 2024, a decrease of US$5.59 billion from the previous year. Consequently, Taiwan’s net fund outflow, which accounts for the flow of direct and portfolio investments, reached US$94.39 billion in 2024, up by US$9.02 billion from the previous year.
During the fourth quarter, the country’s net fund outflow amounted to US$30.70 billion, rising by US$2.53 billion from the previous year, marking the 58th consecutive quarter of net fund outflows, the longest in Taiwan’s history.
As these trends continue, concerns about sustained massive fund drainage have intensified. In response, the central bank explained that net financial account outflows are typical for countries like Taiwan, which maintain a long-term current account surplus. Comparable patterns are observed in countries including Japan, Singapore, South Korea, and Germany.
Taiwan’s current account, which mainly measures exports and imports of goods and services, recorded a surplus of US$113.83 billion in 2024, an increase of US$7.99 billion from the previous year. This included a record-high surplus of US$100.7 billion in goods, fueled by strong global demand for emerging technologies.
In the fourth quarter, Taiwan’s current account surplus was US$34.40 billion, a slight decrease of US$240 million from a year earlier. Chen noted that profits generated by Taiwanese companies from overseas direct investments, including dividend income, would be recorded as primary income in the current account.