TAIWAN Trends and Developments Contributed by: Eddie Chan, Derrick Yang, Winnie Lin and Yuan-Yuan Lo, Lee and Li Attorneys-at-Law
In 2024 and 2025, M&A transactions have occurred across a broader range of industries, with medium- and large-scale deals taking place in sectors such as finance, cement, biotechnology and pharmaceuticals, electronics, and raw materials. According to statistics, in the first half of 2025, the amount of foreign acquisi- tions in Taiwan reached USD1.32 billion. Major deals such as SG Holdings (Japan)’s acquisition of Honglin Global Logistics boosted the momentum. Further- more, the scale of transactions in the TMT industries rebounded, indicating that international buyers are making strategic moves in specific sectors in Taiwan, which has helped restore market confidence. Additionally, owing to the Taiwanese government’s promotion of green energy, ESG and industrial upgrading policies, M&A transactions in renewable energy sectors have grown rapidly. Recognising the potential of the renewable energy market, Taiwanese enterprises have vigorously invested in this sector. Further, the legal framework and supporting measures pertaining to renewable energy in Taiwan are becom- ing mature. This development has fostered optimism among international renewable energy investors, who are increasingly drawn to Taiwan’s burgeoning renew- able energy sector, leading to a surge in investments in and acquisitions of power plants. Technology M&A deals in Taiwan for 2025 Despite global political and economic instability, Tai- wan’s technology M&A market has continued to grow, driven by the rapid development in the semiconductor and AI supply chain. Although there is a lack of large- scale cross-border M&A deals, overall M&A activity remains quite robust. Research reports indicate that M&A activities in Tai- wan’s technology sector are largely concentrated in the fields of semiconductors, electronic components, as well as AI and HPC applications. Looking at the top ten M&A transactions in Taiwan for the past ten years, it can be observed that the TMT (technology, media and telecommunications) industry is a primary focus for M&A, with nearly half of the transaction value involving Taiwanese companies acquiring overseas. In terms of outbound M&A transactions, the largest M&A transaction in Taiwan’s technology industry in
2023 was the world-leading electronic components distributor WPG Holdings’ acquisition of Canadian peer Future Electronics for USD3.8 billion. This cross- border acquisition aimed to achieve a high degree of complementarity in product lines and customer bases, thereby enhancing synergy and profitability. The trans- action set a record for the highest value in Taiwan’s M&A history for an outbound acquisition. In 2024, there were several significant M&A cases in the technology industry, including: • Radiant Opto-Electronics’ acquisition of NIL Tech- nology (Denmark); • Global Brands’ acquisition of Lincstech (Japan); • AU Optronics’ acquisition of BHTC (Germany); and • Foxconn’s acquisition of ZF Chassis Modules (Germany). In the first half of 2025, transaction value increased by 220% compared to the same period in 2024, includ- ing landmark cases such as Yageo’s acquisition of an 87% stake in Shibaura Electronics (Japan) through a tender offer to strengthen its sensor business in the automotive, industrial and medical sectors, and Asmedia’s acquisition of Techpoint (US) to tap into automotive and security sectors. Further, since most major technology companies, such as Nvidia, Google, Amazon and Apple, are headquartered in the US, and given the recent US policy initiatives, Taiwanese enterprises are being encouraged to expand to the US market. In March 2025, TSMC announced an additional investment of USD100 billion in the US, raising its total US invest- ment to USD165 billion – a new record for the larg- est foreign direct investment in US history. TSMC’s investment has prompted Taiwanese semiconductor suppliers, including TSS2 Holdings, a newly formed consortium of 18 suppliers, to also establish opera- tions in the US. Compal gas announced its plan to invest in the US, totalling around USD100 million. These developments are expected to further stimu- late M&A activities. From the above cases, it can be seen that in recent years Taiwanese companies have engaged in cross- border mergers and acquisitions primarily for the pur-
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