Foreign companies are ramping up their investments in Taiwan without hesitation. Merck and BASF say semiconductor ecosystems are difficult to replicate.
The "2026 Top 100 Foreign Investors in Taiwan Awards Ceremony and Foreign Investor Forum" will be held on September 2nd. The first forum, themed "Why We Stay: How Global Companies Deepen Their Roots in Taiwan," invited three multinational corporations—Merck Electronics, BASF Taiwan, and Novo Nordisk Taiwan—to share their strategies for operating in Taiwan.
Foreign investors pointed out that Taiwan has developed competitive advantages that are difficult to replicate in the short term, from semiconductor clusters and R&D speed to the medical system.
Merck strengthens its local supply chain in Taiwan to be closer to customers with advanced manufacturing processes.
Dr. Surésh Rajaraman, Executive Vice President and Chief Technology Officer of Merck Electronics Technology, stated that Taiwan holds a significant position globally in advanced semiconductor manufacturing processes and packaging. With the advent of the AI era, materials innovation must be developed in tandem with customers. Merck has invested over NT$17 billion in Taiwan in recent years, including in the Kaohsiung Semiconductor Technology Park, thereby bringing key materials production closer to Taiwanese customers and strengthening the localization and reliability of its supply chain.
Dr. Rajaraman pointed out that semiconductor technology is developing extremely rapidly, and material suppliers cannot simply play the role of back-end suppliers; they must be close to customers and participate in technological evolution. Taiwan possesses wafer manufacturing, packaging, materials, equipment, and talent, forming a complete industrial chain, which is also an important reason why Merck continues to expand its investment in Taiwan.
Taiwan's ecosystem is difficult to replicate BASF's: Investing in Taiwan presents more opportunities than risks.
Jens Liebermann, Chairman of BASF Taiwan and Senior Vice President of the Electronic Materials Business Unit, stated that approximately 70% of the world's semiconductor wafer fabs are concentrated in East Asia, and Taiwan is situated at the core of the entire electronics industry ecosystem. BASF has even shifted its global leadership and decision-making focus for its Electronic Materials business from Germany to Taiwan, placing higher-level operations, R&D, and decision-making capabilities directly with its customers.
Liebermann points out that what is truly difficult to replicate in Taiwan is not a single company or a single technology, but rather the highly dense network of enterprises, wafer fabs, suppliers, schools, and research institutions, which greatly accelerates the speed at which new technologies move from research and development to mass production.
In response to geopolitical concerns such as the situation across the Taiwan Strait, Liebermann stated that multinational corporations naturally incorporate factors such as politics, natural disasters, energy and supply disruptions into their risk assessments when making long-term investments. However, opportunities must also be considered alongside risks. For BASF, Taiwan offers rapid technological advancements, industrial reliability, and a complete customer base. After comprehensive evaluation, "the opportunities far outweigh the risks."
Foreign companies, from semiconductors to medical devices, point out the challenges of talent and internationalization.
Compared to the technology industry, Novo Nordisk does not have a large manufacturing base in Taiwan. However, General Manager Hans Duijf pointed out that the company is deepening its cooperation with Taiwan through clinical trials, medical education, scientific collaboration, and connections with local healthcare systems. Taiwan's National Health Insurance system is highly data-driven, accumulating a large amount of medical data, which is of great value for chronic disease research and healthcare system innovation. The company also hopes to further export the experience learned in Taiwan globally.
However, all three foreign companies pointed out that one of the biggest challenges Taiwan will face in the next phase is "talent." The declining birth rate and aging population continue to widen, leading to a shortage not only of high-level R&D talent but also of basic human resources in manufacturing, logistics, supply chains, and healthcare services. For foreign companies, the supply of talent will be a key factor in whether they make their next investment decision, and will be crucial to Taiwan's ability to maintain its competitiveness.
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