271 Investments in Taiwan, White Paper Reveals Shift in Strategy
The Japanese Chamber of Commerce & Industry, Taipei submitted its 18th white paper to the Taiwan government in early October this year, disclosing 271 cases of Japanese direct investment in Taiwan in 2025 totaling nearly US$900 million. The white paper system originated from a request document proposed in 2008 and has been submitted in white paper form since 2009, becoming an important channel for Japanese firms' policy recommendations to Taiwan. In response to CNA questions, the Chamber said the large number of cases shows broad interest by Japanese companies in the Taiwan market, with investment momentum remaining steady.
Investment Targets Diversify, Focus on Semiconductors and Net-Zero
The Chamber noted that over the past 3 to 5 years, Japanese firms' investment targets in Taiwan have become increasingly diversified. Beyond traditional investments aimed at entering the Taiwan market and sales, corporate attention is rising toward semiconductors and AI-related materials and equipment, precision machinery, renewable energy, net-zero transition, healthcare and long-term care. Areas with cooperation potential include semiconductor and AI-related industries, energy, medical and healthcare, as well as precision machinery and materials. Taiwan's advantages lie in advanced industrial clusters, manufacturing capabilities, supply-chain flexibility and speed to commercialization, while Japan has strengths in materials, precision machinery, manufacturing equipment, quality management and long-term stable equipment operation, with both sides expected to further deepen cooperation.
Call to Lower Auto Parts Tariffs to Boost Vehicle Competitiveness
This year's white paper also raised the issue of import tariff reductions on auto parts. The Chamber said Taiwan's current finished-vehicle tariff is 17.5%, with some auto parts tariffs at 15% to 17.5%, and through the Taiwan Transportation Vehicle Manufacturers Association it has again recommended lowering tariffs on 13 products including engines and components, with ongoing dialogue with relevant authorities and no consensus yet on specific institutional changes. The Chamber stressed the recommendation is not simply to increase imports of parts from Japan, but to expand finished-vehicle production in Taiwan and enhance industrial competitiveness.
Green Power Costs in Focus, Call for Stronger Grids and Transparency
In a survey on Taiwan's business-related infrastructure, some Chamber members noted that compared with other countries, the cost of purchasing carbon credits and switching to renewable energy or purchasing renewable energy certificates in Taiwan is unusually expensive. The Chamber explained that the issues raised by member companies concern not only prices for renewable energy certificates and similar instruments, but also the overall business environment needed for decarbonization, including green power supply volume, availability, price predictability, transmission and distribution grids and grid connection. The Chamber hopes the Taiwan government can expand renewable energy supply, strengthen transmission and distribution grids, and improve trading system transparency so companies can forecast medium- to long-term procurement volumes and related costs. Looking ahead, in addition to Japanese companies entering the market alone, cooperation with Taiwan companies is also an important direction. Investments in advanced industries and energy and power sectors have longer timelines and involve multiple permit reviews, making predictability of administrative procedures crucial, with Japanese firms' focus expanding from entering the Taiwan market to participating in Taiwan's industrial upgrading and addressing social issues.