TAIWAN Law and Practice Contributed by: Susan Lo, Chi Lee and Evelyn Shih, Lee and Li Attorneys-at-Law
Lee and Li Attorneys-at-Law 8F, No 555, Sec 4 Zhongxiao E Rd Taipei 110055 Taiwan
Tel: +886 2 2763 8000 Fax: +886 2 2766 5566 Email: attorneys@leeandli.com Web: www.leeandli.com
1. Market Conditions 1.1 Geopolitical and Economic Factors In the past year, Taiwan has seen a notable increase in outbound JV activity, particularly in the semiconduc - tor sector. This trend reflects a strategic response to global geopolitical uncertainties, supply chain restruc - turing and the push for technological collaboration. Taiwanese companies have launched high-profile JVs in Singapore, France, Japan and South Korea, among other countries, focusing on advanced manufactur - ing, packaging technologies and materials innovation. These initiatives align with Taiwan’s “In Taiwan, Out to the World” policy and demonstrate a shift from being a manufacturing hub to a global strategic partner. Meanwhile, in the retail sector, Japanese investors have recalibrated their JV positions in Taiwan, driven by geopolitical risk assessments and shareholder pressure. Transactions such as Itochu’s divestment from Taipei 101 and Isetan Mitsukoshi’s exit from Shin Kong Mitsukoshi Department Store were executed smoothly, supported by well-structured JV frame - works. Looking ahead to 2026, Taiwan’s JV landscape is expected to continue evolving towards cross-border industrial integration, localised production and flexible deal structures that support long-term resilience and market expansion. 1.2 Industry Trends and Emerging Technologies Certain sectors in Taiwan have been notably more active in JV formation, particularly semiconductors, renewable energy and AI. The semiconductor indus - try continues to lead outbound JV activity, driven by
supply chain diversification and international collabo - ration. Additionally, Taiwan’s renewable energy sector saw a major development with the formation of Taiwan Intel - ligent Energy Co (TIEC) – a government-facilitated JV with participation from both government-owned and private entities designed to address structural chal - lenges in green energy procurement and support broader access to renewable power. This reflects how policy and carbon regulation are directly shaping JV structures to meet evolving market needs. In parallel, emerging technologies – especially AI – are influencing JV activity through regulatory and funding frameworks. Taiwan’s updated AI Startup Investment Enhancement Guidelines have created new incen - tives for public-private JV vehicles, particularly those aligned with national digital economy goals. These policies not only encourage co-investment but also impose clear requirements around data govern - ance, IP protection and transparency. As a result, JV vehicles in Taiwan are increasingly structured to accommodate regulatory compliance in said areas regarding new technology.
2. JV Structure and Strategy 2.1 Typical JV Structures
JVs can be formed as traditional companies (either a company limited by shares or a limited company – JVC). JVCs in the form of a closed-end company allow for restrictions on the transfer of shares. The
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