TAIWAN Trends and Developments Contributed by: Eddie Chan, Derrick Yang, Winnie Lin and Yuan-Yuan Lo, Lee and Li Attorneys-at-Law
emission policy, the solar photovoltaic market con- tinues to grow. Biotechnology and medical technology This sector includes biotechnology, pharmaceuticals, medical devices and health technology products. Tai- wan has made significant progress in areas like pre- cision medicine, vaccine development and medical imaging technology. Green energy With the growing global focus on environmental pro- tection and renewable energy, Taiwan has also made strides in wind energy, solar energy and other green technologies. Global economic climate, technological innovation and development trends, trade protectionism as well as geopolitical situations may have impacted the development of Taiwan’s technology and semicon- ductor industries. Despite the challenges, the overall outlook for Taiwan’s technology and semiconductor industries in 2026 remains thriving. This is mainly due to cooling inflation, a stabilising job market, a rebound in consumer spending, and the completion of inventory adjustments in the indus- tries. Additionally, the demand for semiconductors driven by the AI boom and new energy is increasing, leading to a gradual recovery in the industry climate and strengthening investment willingness among businesses. Against the backdrop of global technol- ogy, industry market restructuring and technological changes, Taiwan’s role is becoming increasingly cru- cial. M&A Activities Globally and in Taiwan Recent global trends In 2024, although the global economy is gradually recovering from the impact of the COVID-19 pan- demic, M&A activities remain stagnant due to factors such as high inflation, high interest rates and the tight- ening of monetary policies by central banks world- wide. Additionally, export controls, high-tech barriers, war conflicts and global geopolitical developments continue to affect the global M&A market. Moreover, due to stricter national security issues and antitrust regulations, the number of large-scale global M&A
transactions has decreased, shifting towards small to medium-sized investment cases. Also, stock mar- kets in many regions have seen more rises than falls during this period, with capital flowing into the stock market, which has dampened many companies’ inter- ests in expansion through acquisitions and raised the expected transaction amounts for M&A deals. Many of these factors remain, exerting pressure on M&A activities in 2025. In 2025, global economic and political uncertainty – stemming from shifting US tariff policies, persistent geopolitical tensions, and global supply chain rea- lignments – has led deal makers to take a cautious and selective attitude, and has significantly reshaped the landscape for M&A activities. However, benefiting from the growth of semiconductor and AI technology, the rapid development of technology industries, as well as the decline in inflation and interest rates, the technology M&A market still performed quite actively. Fuelled by several large-scale deals, the total value of M&A transactions has shown an upward trend. According to recent statistics, deal value grew 10% in the first nine months of 2025 compared with the same period in 2024, signalling a steady recovery and M&A activities in Taiwan are similarly influenced by the aforementioned global economic, financial and politi- cal situations, showing trends consistent with global M&A activities. With the global economy and policy environment changing rapidly, Taiwanese enterprises are actively strengthening their overseas presence. Rather than relying on a single market, Taiwanese enterprises are accelerating the establishment of multiple regional hubs to respond to geopolitical changes, supply chain restructuring and the rise of regional economies. Cross-border mergers and acquisitions have become a key strategy for Taiwanese enterprises to acquire critical technologies, facilitate industrial upgrading and transformation, expand into foreign markets and enhance supply chain resilience. Investments and seeking co-operation in Europe, the US and South- East Asia are becoming popular. renewed confidence in the market. Recent developments in Taiwan
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