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Taiwan’s mergers and acquisitions (M&A) market in 2024 and early 2025 experienced a notable dynamic shift, mainly driven by industrial transformation and global investment strategies.

In addition, total transaction value grew significantly, propelled principally by active consolidation within the domestic financial sector and increased outbound investment by Taiwanese companies targeting new markets, technologies and customer bases.

Conversely, inbound M&A activities recorded a decline in both deal value and volume compared to the previous year, reflecting a more cautious approach adopted by international investors amid geopolitical uncertainty.

Key market trends

(1) Industrial transformation, strategic global investment. Driven by increasingly stringent ESG regulations and growing sustainability expectations from global investors and supply chain partners, Taiwanese industrial conglomerates are accelerating their industrial transformation from traditional manufacturing towards low-carbon technologies and renewable energy solutions. This shift has become one of the major drivers of outbound M&A activities in recent years.

Taiwan Cement Corporation (TCC) is a leading example of such transformation. In 2024, TCC advanced its decarbonisation strategy through two landmark acquisitions of Portugal’s Cimpor and Turkey’s OYAK Cement. These significantly expanded its footprint in Europe and the Middle East, regions pivotal to sustainable infrastructure development and carbon-neutral construction initiatives.

Concurrently, TCC is strategically positioning its energy division as a fourth core revenue pillar, actively entering Europe’s growing energy storage and electric vehicle charging markets by leveraging subsidiaries such as TCC Energy Storage, Atlante and NHOA.

Similarly, Formosa Plastics Group (FPG) has substantially advanced its footprint in the renewable energy sector. Since 2022, FPG has invested heavily in the development, production and sale of lithium iron phosphate (LFP) battery materials, which are recognised for their safety, durability and environmental benefits.

In 2024, FPG committed more than TWD16 billion (USD535 million) to build Taiwan’s largest LFP battery plant in Changhua, while simultaneously developing next-generation solid-state batteries and planning for global expansion in the energy storage sector.

These corporate strategies reposition Taiwan’s industrial leaders as formidable players within the global green economy, thereby fuelling a sustained surge in Taiwan’s outbound M&A activity.

(2) Production base relocation, supply chain realignment. The introduction of a comprehensive tariff policy by the US in April 2025 has materially influenced the corporate strategy of Taiwanese companies. To mitigate tariff exposure and supply chain risk, companies have accelerated geographic diversification of their production bases, expanding manufacturing capacities in the US, Europe and Southeast Asia.

One of the most prominent examples of strategic realignment is Taiwan Semiconductor Manufacturing Company (TSMC). In March 2025, TSMC announced an additional USD100 billion investment in the US, bringing its total US commitment to USD165 billion. This expansion includes three advanced fabrication facilities, two packaging facilities and an R&D centre in Phoenix, Austin and San Jose targeting semiconductor manufacturing for the AI era.

Also in March 2025, state-owned energy giant CPC Corporation (CPC) executed a letter of intent with Alaska Gasline Development Corporation to procure liquefied natural gas from the US-based Alaska LNG project with a total investment amount exceeding USD40 billion, and also to explore equity participation opportunities.

These large-scale production base shifts in the semiconductor sector, along with other significant investments in the US by Taiwan’s leading industrial players, are not isolated developments.

Instead, they are catalysing a broader restructuring of upstream and downstream supply chains, as well as the relocation of key service providers – including financial institutions and logistics partners.

This systemic realignment is expected to fuel a new wave of outbound M&A activity, as Taiwanese companies pursue strategic footholds across North America and Europe to stay aligned with global market trends.

(3) Financial sector consolidation. Financial sector consolidation emerged as another critical driver of Taiwan’s M&A landscape in 2024.

Most notable transactions include the proposed stock-for-stock merger between Taishin Financial Holding and Shin Kong Financial Holding. Taiwan’s Financial Supervisory Commission (FSC) has approved the proposed merger, which is expected to close by late July 2025.

Both parties have emphasised the strong synergy and complementary strengths across their banking, securities and insurance businesses. The integration of their respective subsidiaries under the financial holding company is expected to be completed in phases over the next two years. On completion, the merger would form Taiwan’s fourth-largest financial holding company.

Another notable transaction in 2024 was E.SUN Financial Holding’s acquisition of 91.2% of shares in PGIM Taiwan, marking its return to the investment trust sector after a 16-year hiatus since divesting similar assets in 2008. The total amount of the acquisition is about TWD2.76 billion.

The transaction also marks Prudential Financial’s complete exit from the Taiwanese market, following the earlier sale of its insurance unit to Taishin Financial in 2020. The transaction remains subject to FSC approval.

Furthermore, SinoPac Financial Holdings announced its plan to acquire 100% ownership of King’s Town Bank in a transaction valued at about TWD60 billion. This acquisition is anticipated to strengthen SinoPac’s southern Taiwan footprint, diversify its customer base, and generate operational synergies, particularly in SME financing and digital banking services. Pending regulatory approval from the FSC, the deal is expected to close as early as the fourth quarter of 2026.

In reviewing recent consolidation trends within the financial sector, it is evident that the scaling-up of financial institutions has significantly bolstered their international competitiveness, enabling more proactive expansion into global markets.

In concert with trends of manufacturing base shifts, industrial transformation and potential supply chain realignment, these financial institutions – serving as essential service providers to the business ecosystem – constitute pivotal drivers of the sustained growth of Taiwan’s outbound M&A activities.

Looking ahead

Taiwan’s 2024 and early 2025 M&A market reflects a confluence of transformative industrial innovation, strategic geographic diversification and robust financial sector consolidation.

As domestic companies continue to adapt to global economic shifts and regulatory demands, their increasing scale and international reach will further fortify Taiwan’s capacity to engage in cross-border M&A at scale.

Looking forward, this integrated ecosystem will continue to support Taiwan’s competitive positioning in the global market. Such developments are expected to sustain momentum in outbound M&A transactions in the years to come.

In response to increasing concerns over the outflows of core technologies,
the government is also undertaking reform of the outbound investment regulatory regime.

Under current law, outbound investment exceeding TWD1.5 billion requires prior approval from the Department of Investment Review, within the Ministry of Economic Affairs (MOEA). Historically, Taiwan has maintained a relatively relaxed investment review framework to outbound investment, with more stringent scrutiny for transactions involving mainland China, Hong Kong and Macau.

However, in October 2024, the MOEA published a draft amendment to the Statute for Industrial Innovation, which sets out a more proactive review for outbound investment.

The amendment proposes a three-pronged control standard – namely, investment destination, industry or technology involved and transaction size – any one of which may trigger a pre-investment approval requirement.

Specifically, the regime will encompass investment into jurisdictions desginated as sensitive or high risk (such as jurisdictions subject to strategic export controls), as well as transactions involving critical technologies, including those identified by the National Science and Technology Council.

In addition to the fines, the reform also introduces substantive administrative tools previously unavailable under the existing regime such as partial denials, transaction-specific conditions, and pre-implementation divestiture or suspension orders.

Importantly, the proposed amendment broadens the regulatory scope by allowing regulators to intervene in high-risk outbound transactions below the TWD1.5 billion threshold.

These measures are intended to safeguard national security, prevent unauthorised dissemination of critical technologies and maintain Taiwan’s industrial competitiveness within strategically significant sectors.

The effective date of the amendments remains undetermined and will be announced in due course by the Executive Yuan.