TAIWAN Law and Practice Contributed by: Lihuei Mao (Grace), Derrick Yang, Yu-Ting Su and Rose Huang, Lee and Li Attorneys-at-Law
Lee and Li Attorneys-at-Law 8F, No.555 Sec. 4, Zhongxiao E. Rd Taipei 11072 Taiwan ROC
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1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General 2024 saw a modest recovery in private equity trans - actions and M&A deals in Taiwan, and this trend has continued into 2025. Following the pandemic, private equity funds are primarily focusing on the TMT sector, but the overall momentum is still slow-paced. Trans - actions in the renewable energy industry are generally unaffected, with major divestments in offshore wind farms and new deployments in the solar and power storage businesses. The authors have also seen outbound investments driven by local industrial giants through partnerships with private equity funds in response to regional economic growth. For example, Universal Scientific Industrial, a subsidiary of ASE Technology Holding, acquired TE Connectivity’s Hirschmann Car Com - munication segment with Phi Capital. With extensive experience in capital markets and cross-border trans - actions, the private equity fund can assist Taiwanese industrial forerunners in business expansion, industrial integration and future growth. 1.2 Market Activity and Impact of Macro- Economic Factors Taiwan’s robust manufacturing and R&D capabilities in semiconductors, 5G telecommunications, AI and the internet of things (IoT) continue to position it at the core of high-technology supply chains. Despite ongoing inflation pressures and persistent geopoliti - cal uncertainties, the semiconductor and AI-related industries remain highly attractive to investors.
Geopolitical tensions across the Taiwan Strait, while still present, have become a less dominating factor for sophisticated private equity funds when evalu - ating deals in Taiwan if effective risk mitigation and contingency plans are in place. Investment trends at a regional level have further shifted towards Taiwan, driven by increasingly restrictive investment climates in neighbouring jurisdictions such as Mainland China and Hong Kong. Additionally, long-term investments in renewable energy sectors – including solar, offshore wind farms and energy storage – remain robust, sup - ported by strong governmental policies and expand - ing green financing initiatives. 2. Private Equity Developments 2.1 Impact of Legal Developments on Funds and Transactions To enhance the private equity investment environ - ment, local stakeholders established the Taiwan Pri - vate Equity Association (TPEA) in 2023. TPEA mem - bers include private equity, securities, investment, venture capital and other financial institutions. As the authority in charge, the National Development Council (NDC) has promulgated the Guidelines for Facilitating Private Equity Fund Investing in Industries as part of the development of Taiwan’s core strategic industries. These guidelines allow qualified private equity funds to solicit funding from insurance com - panies. To join forces with the NDC, the Financial Supervisory Commission (FSC) also amended the Regulations on
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