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Taiwan and EU Forge Stronger Economic Ties at 2024 Investment Forum
 

Taiwan and the EU are solidifying their economic partnership, as highlighted at the 2024 EU Investment Forum in Taipei. With a significant boost in Taiwanese investments in the EU, including major semiconductor and green energy projects, the forum showcased opportunities arising from initiatives like the European Chips Act and the Green Deal. Could this lead to a formalized Economic Partnership Agreement (EPA) between Taiwan and the EU?

By Judy Lin
2024-11-19

The 2024 EU Investment Forum, marking its fifth anniversary, took place at the Taipei International Convention Center, drawing 250 participants from diverse sectors, including industry professionals, academics, trade representatives from EU member states, foreign investors, and government officials. Taiwan’s President Lai Ching-te attended the event, underscoring the growing importance of Taiwan-EU economic collaboration.

In a pre-recorded video message, Maria Martin-Prat, Deputy Director-General of the European Commission’s Directorate-General for Trade, emphasized the opportunities provided by the European Chips Act and the Green Deal for Taiwanese businesses. She encouraged Taiwanese companies to deepen their investments in the EU, highlighting the role of industry leaders like GlobalWafers in bolstering the EU’s semiconductor ecosystem through strategic partnerships.

President Lai echoed this sentiment in his English address, advocating for secure and resilient supply chains among global democracies. He proudly announced Taiwan’s 22 new investment projects in the EU in 2023, totaling over $4.9 billion—a 750% year-on-year surge. Lai expressed optimism about the potential of an Economic Partnership Agreement (EPA) between Taiwan and the EU, envisioning enhanced cooperation in semiconductors, AI, digital technology, environmental protection, and green energy. "This will not only make our economies more resilient and secure but also ensure the stable operation of global supply chains," he stated.

 

EU-Taiwan Relations: A Win-Win Partnership
Lutz Guellner, head of the European Economic and Trade Office (EETO), reiterated the mutual benefits of EU-Taiwan economic relations during his inaugural speech. "The forum highlights the untapped potential of our partnership between democratic, like-minded allies. My office is committed to actively deepening these ties," said Guellner.

According to Chung-hua Institute for Economic Research (CIER), the EU accounted for less than 1% of Taiwan’s outward investment in 2010, but by 2023, investment in the EU represented 19% of Taiwan’s total outward investment.

Taiwanese investments in the EU are set to expand further, buoyed by major moves like TSMC’s joint venture in Germany, tagged along by key supply chain partners such as TSC, a quartz component supplier which plans to set up a factory in Czech Republic.

 

GlobalWafers: A Strategic Approach to European Investments
GlobalWafers, the world’s third-largest silicon wafer supplier, exemplifies Taiwan’s growing footprint in Europe with three operational wafer plants in Italy and Denmark. CEO Doris Hsu highlighted the company’s decision to expand in Europe through greenfield investments in Italy following a failed bid to acquire Germany’s Siltronic in 2022 partly thanks to EU Chips Act incentives, and partly because many countries started to see semiconductor-related merger and acquisition as a national security issue in the post-pandemic era.

Hsu explained that geopolitical pressures, business continuity, proximity to customers, and carbon footprint reduction were key factors in the company’s European strategy. "Local production allows us to respond to customer demand more efficiently while cutting emissions," she noted. Hsu also emphasized the importance of factors such as talent availability, customer proximity, green energy supply, land acquisition, political stability, and transparent tax policies in selecting investment destinations.

 

Diverse Taiwanese Investments in Europe
Other Taiwanese corporate leaders also shared their European strategies. Bonnie Tu, Chairperson of Giant Group, discussed the bicycle conglomerate’s plans to leverage Europe’s potential as a key growth market. Similarly, Yu-lon Chiao, Chairman of Walsin Lihwa Corporation, outlined the wire and cable manufacturer’s vision for expanding its European operations.

The forum underscored the synergy between Taiwan and the EU, with investments like those from GlobalWafers, TSMC, and other key players signaling a deepening economic partnership. As the EU and Taiwan align on shared values of democracy, sustainability, and innovation, the future promises stronger ties, enhanced cooperation, and mutual economic resilience.

 

Source: https://english.cw.com.tw/article/article.action?id=3830

 

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