Foreign Companies Expand Investment in Taiwan; Merck and BASF Highlight Its Hard-to-Replicate Semiconductor Ecosystem
Updated: 3 days ago
The 2026 Taiwan FINI 100 Awards Ceremony and Investment Forum: SEEKING ALPHA IN TAIWAN was held on September 2. The first panel, “Why We Stay: How Global Corporations Are Deepening Their Roots in Taiwan,” brought together representatives from Merck Electronics, BASF Taiwan, and Novo Nordisk Taiwan to discuss their investment strategies and operations in Taiwan.
The panelists highlighted Taiwan’s competitive advantages—from its semiconductor clusters and rapid pace of research and development to its healthcare system—which are difficult to replicate in the short term.
Merck Expands Local Supply to Support Customers in Advanced Semiconductor Manufacturing
Dr. Surésh Rajaraman, Executive Vice President and Chief Technology Officer of Merck Electronics, highlighted Taiwan’s important global role in advanced semiconductor manufacturing and advanced packaging. As the AI era accelerates, materials innovation must keep pace with customers’ technology development through close collaboration.
Merck has invested more than NT$17 billion in Taiwan in recent years, including in its Kaohsiung Semiconductor Technology Park. These investments bring the production of critical materials closer to Taiwanese customers, strengthening supply chain localization and reliability.
Dr. Rajaraman noted that semiconductor technology evolves rapidly. Materials suppliers must go beyond simply delivering materials: they need to work closely with customers and contribute to technology development.
Taiwan brings together wafer fabrication, packaging, materials, equipment, and skilled talent in a comprehensive semiconductor ecosystem. This is a key reason why Merck continues to expand its investment in Taiwan.
BASF: Opportunities Outweigh Risks in Taiwan’s Hard-to-Replicate Ecosystem
Jens Liebermann, Chairman of BASF Taiwan and Senior Vice President of its Electronic Materials business, noted that approximately 70% of the world’s semiconductor wafer fabs are concentrated in East Asia, with Taiwan at the heart of the electronics industry ecosystem.
BASF has moved the global leadership and decision-making center of its Electronic Materials business from Germany to Taiwan, bringing senior operational leadership, R&D capabilities, and decision-making closer to its customers.
Liebermann explained that Taiwan’s distinctive strength lies in the dense network connecting companies, wafer fabs, suppliers, educational institutions, and research organizations. This network significantly accelerates the transition from R&D to mass production and is far more difficult to replicate than any individual company or technology.
Addressing geopolitical concerns, including cross-strait tensions, Liebermann said multinational companies routinely assess political risks, natural disasters, energy risks, and supply disruptions when making long-term investments. Opportunities, however, must also be weighed alongside those risks.
For BASF, Taiwan offers rapid technological progress, a reliable industrial ecosystem, and a well-developed cluster of customers. Taking these factors together, he said, the opportunities far outweigh the risks.
From Semiconductors to Healthcare, Talent Shortages Pose a Shared Challenge
Unlike the technology companies represented on the panel, Novo Nordisk does not have a large manufacturing base in Taiwan. Nevertheless, Hans Duijf, General Manager of Novo Nordisk Taiwan, explained that the company continues to deepen its engagement through clinical trials, medical education, scientific collaboration, and partnerships within the local healthcare system.
Taiwan’s highly digitized National Health Insurance system has accumulated extensive health data, providing valuable resources for chronic disease research and innovation in healthcare delivery. Novo Nordisk also hopes to apply the lessons learned in Taiwan to other markets around the world.
All three companies identified talent availability as one of Taiwan’s most pressing challenges in the years ahead. As low birth rates persist and the population ages, workforce shortages extend beyond advanced R&D roles to manufacturing, logistics, supply chains, and healthcare services.
For multinational companies considering further investment in Taiwan, access to talent will be a key factor in their decisions—and a critical condition for Taiwan to sustain its competitiveness.
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