Taiwanese Listed Companies' Overseas Investment Hits Record NT$362.7 Billion Increase in Q1

(Central News Agency, Taipei, 9th) The Financial Supervisory Commission (FSC) stated today that as of the end of the first quarter of this year, the cumulative overseas investment (excluding China) by listed and OTC companies totaled NT$11.3461 trillion, a quarterly increase of NT$362.7 billion. This increase set a new record for the same period in previous years and was mainly due to M&A, the establishment of new overseas subsidiaries, or factory expansions by existing ones, thus increasing overseas investment. For both listed and OTC companies, the semiconductor industry accounted for the largest cumulative investment amount.

The FSC today released the Q1 overseas and China investment figures for listed and OTC companies. As of the end of Q1, 775 listed companies and 606 OTC companies, totaling 1,381 firms, have invested overseas. This accounts for 74.97% of all 1,842 listed and OTC companies and represents an increase of 11 companies from the end of last year.

Wang Hsiu-ling, Chief Secretary of the FSC's Securities and Futures Bureau, pointed out that by the end of Q1, listed companies had cumulatively invested NT$10.4583 trillion overseas (excluding China), while OTC companies had invested NT$887.8 billion, for a total of NT$11.3461 trillion. This is a quarterly increase of NT$362.7 billion, a record high for the same period. The main reasons were M&A or setting up new overseas subsidiaries, as well as needs for factory expansion, working capital, or participation in cash capital increases by overseas subsidiaries. Among these, the semiconductor industry had the largest cumulative investment for both listed and OTC companies.

Regarding Q1 investment income from overseas, Wang Hsiu-ling stated that listed companies earned NT$281.3 billion and OTC companies earned NT$14.8 billion, for a total profit of NT$296.1 billion. This is an overall increase of NT$54.4 billion compared to Q1 of last year, setting a record high increase for the same period. The investment profits for listed and OTC companies increased by NT$46.4 billion and NT$8.0 billion respectively compared to the same period last year, mainly due to booming demand related to AI.

The FSC statistics show that as of the end of Q1, 698 listed companies and 516 OTC companies, totaling 1,214 firms, have invested in China. This accounts for 65.91% of all 1,842 listed and OTC companies, a decrease of 10 companies from the end of last year.

Wang Hsiu-ling stated that as of the end of Q1, listed companies had a cumulative investment of NT$2.5573 trillion in China, and OTC companies had NT$247.5 billion, totaling NT$2.8048 trillion. This was an increase of NT$14.7 billion from the end of last year, mainly due to exchange rate fluctuations; excluding the currency factor, the increase was only NT$1.4 billion. For listed companies, the computer and peripheral equipment industry had the largest cumulative investment, while for OTC companies, it was the electronic components industry.

As for investment income, Wang Hsiu-ling said that listed companies' profits from China were NT$138.8 billion, and OTC companies' profits were NT$6.2 billion, for a total profit of NT$145.0 billion. This was an overall increase of NT$29.4 billion compared to Q1 of last year, a new high for the same period. The investment profits for listed and OTC companies increased by NT$27.0 billion and NT$2.4 billion respectively compared to the same period last year, mainly because the other electronics, computer and peripheral equipment, and semiconductor industries benefited from increased end-user demand, leading to profit growth.

The Securities and Futures Bureau stated that although investment in China has contributed to the profits of listed and OTC companies, the amount of new investment in China has shrunk significantly in recent years, indicating a gradual reduction in reliance on China.