TAIWAN Law and Practice Contributed by: Eddie Chan, Derrick Yang, Winnie Lin and Yuan-Yuan Lo, Lee and Li Attorneys-at-Law
Lee and Li Attorneys-at-Law 8F, No. 555 Sec. 4, Zhongxiao E. Rd Taipei 11072 Taiwan Republic of China
Tel: +886 2 2763 8000 Fax: +886 2 2766 5566 Email: attorneys@leeandli.com Web: www.leeandli.com/EN
1. Market Trends 1.1 Technology M&A Market
remained robust, with several noticeable mid-sized deals in the TMT sectors taking the spotlight. As Taiwan’s technology industry continues to thrive, strategic partnerships and acquisitions will play a piv- otal role in shaping the future and driving sustainable growth of the industry. 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company 2.1 Establishing a New Company Many start-up companies founded by Taiwanese nationals are initially incorporated in Taiwan. Set- ting up a company in Taiwan typically takes around two weeks, assuming there are no foreign investors involved. However, while some venture capital inves- tors are open to investing in Taiwanese-based start- ups, many institutional and reputable investors prefer for the target company to re-domicile or restructure to the Cayman Islands or the British Virgin Islands. This preference is driven by the greater flexibility offered by these jurisdictions for venture capital investors to structure special corporate governance and share- holder rights, as well as their more favourable tax regimes. As a result, start-up companies may choose to re-domicile or restructure to the Cayman Islands or the British Virgin Islands when they have matured to a stage where they are seeking funding from institu- tional investors overseas.
While the development of AI has spurred growth in certain industries, the overall pace of economic expansion has slowed down due to uncertainties such as global geopolitical tensions and trade bar- riers. In response to these evolving circumstances, the Taiwanese government continues to promote five key trusted industries — semiconductors, AI, defence, security and surveillance, and next-generation com- munications — while also accelerating transformation in digitalisation and net-zero initiatives, with the aim of enhancing Taiwan’s overall economic momentum. The number of Taiwan’s M&A deals in the first half of 2025 declined compared to the same period in 2024, yet the transaction value slightly increased, showing a revival in the technology M&A market. 1.2 Key Trends Taiwan’s semiconductor sector has benefited from the AI boom and the promotion of technology integra- tion. This has led to a rebound in M&A transactions in the country’s technology industry, with a strong focus on fostering innovation and expanding market reach. Meanwhile, Taiwanese technology companies are actively pursuing global transformation and upgrad- ing, with an increase in overseas investment and cross-border mergers and acquisitions. In the first half of 2025, Taiwan’s M&A market was considered rela- tively stable. Although there was a lack of large-scale cross-border M&A transactions, overall deal activities
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