TAIWAN Trends and Developments Contributed by: Lihuei Mao (Grace), Derrick Yang, Rose Huang and Yu-Ting Su, Lee and Li Attorneys-at-Law
SaaS solutions, raised approximately USD8.3 million in Series B financing from ITIC and the Taiwan-Japan III Fund. While there has only been a fairly limited num - ber of larger-scale M&A in the past years, the market is not short of small and medium-sized acquisitions and investments. These collaborations reflect a robust and dynamic investment environment that is driving the growth of AI and semiconductor supply chains into the next phase. Offshore wind and green energy The green energy sector remains a key focus for both international and local private equity funds, driven by the increasing emphasis on environmental, social and governance (ESG) issues and sustainable and responsible investment. In recent years, Taiwan’s Min - istry of the Environment has passed major policies that favour green energy developments. One such policy is the amended Climate Change Response Act (2023), which explicitly encourages the govern - ment to pursue climate change deterrence measures such as promoting green technology and encouraging a circular economy. The shift towards environment- friendly investments reflects the growing global focus in this area. Notable examples include the establish - ment of Kai-Hong Energy in 2023 by Hon Hai Technol - ogy Group and CDIB Capital Group, which focuses on investments in the renewable energy and energy storage industries. In Taiwan, offshore wind farms and energy storage equipment are among the top priorities for invest - ments. Offshore wind development began in 2018 with small-scale pioneer projects and sped up in the Round Two auction. With a number of wind farms hav - ing already reached commercial operation and under - gone divestments by the sponsors to other inves - tors, the Ministry of Economic Affairs has launched a Round Three auction to develop 10 GW of further capacity by 2035. Biotech and healthcare Taiwan’s biotech and medical sectors have also been attracting significant interest from private equity funds due to R&D capacity and advanced industry clusters. A notable example is Baring Private Equity Asia’s acquisition of Ginko International Co., Ltd., which is one of the largest privatisations in Taiwan involving an
international private equity fund in recent years. This landmark transaction not only highlights the attrac - tiveness of Taiwan’s biotech and medical sectors, but also paves the way for similar investments in the future. The transaction also showcases the potential for Taiwan to become a hub for medical and biotech innovations in the Asia-Pacific region. Automotive and electric vehicles The automotive and electric vehicle industries have been aggressively expanding into the field of green energy and electric bus technology and manufactur - ing. This shift is driven by the pressing need to reduce carbon emissions and combat climate change. The government’s climate-friendly policies have acceler - ated the electrification of public transportation. As a result, these industries have attracted more attention from investors and private equity funds. In addition, the integration of AI and IoT in smart vehicles is cata - lysing further industrial consolidation. For instance, in 2023, Universal Scientific Industrial, a subsidiary of ASE Technology Holding, acquired TE Connectivity’s Hirschmann Car Communication segment with Phi Capital. This deal clearly demonstrates that private equity funds can assist Taiwanese industrial forerun - ners with business expansion, industrial integration and future growth. Most recently, in 2025, CarUX, a smart cockpit solutions subsidiary of Innolux, signed a definitive agreement with EQT to acquire 100% equity of Pioneer for approximately USD1.1 billion. This suc - cessful exit demonstrates the value-creation capabili - ties of private equity, serving as an opportunity for Tai - wanese companies seeking to upgrade and globalise. Legislative Efforts In recent years, legislative efforts have fostered a more favourable environment for local private equity invest - ments. PE Guidelines promulgated in 2021 The promulgation of the “Guidelines for Promoting Private Equity Fund Investments in Industries” (the “PE Guidelines”) is a milestone in the establishment of regulatory standards for private equity funds in Tai - wan. The National Development Council (NDC) prom - ulgated these PE Guidelines to help qualified private equity funds obtain support from the insurance indus - try and other funding sources more easily.
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