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Taiwan's approved outbound investment nears US$3 billion in July

Taiwan's approved outbound investment nears US$3 billion in July

Taipei, July 28 (CNA) Taiwan's outbound investment approved by the government in July reached nearly US$3 billion after Taiwan Semiconductor Manufacturing Co. (TSMC) applied to send a large sum overseas, according to the Investment Commission.
The commission approved three applications in a monthly review meeting held Monday and the three, including the one submitted by TSMC to remit US$2 billion as an overseas investment, totaled US$2.78 billion.
The commission said TSMC wanted to boost the capital of its subsidiary -- TSMC Global Ltd. -- located in the British Virgin Islands for financial investment purposes.
Market sources said TSMC is scheduled to hold a board meeting in early August to finalize the plan. It will be the second time TSMC is remitting US$2 billion to TSMC Global after having made a similar remittance in the second half of last year.
The sources said the TSMC investment indicates that the world's largest contract chip maker expects the Taiwan dollar to trend lower in anticipation of the U.S. Federal Reserve raising interest rates beginning later this year.
TSMC's investment in its overseas subsidiary is part of the chip maker's risk hedging strategy to fend off the potential impact of a falling Taiwan dollar, the sources said.
In addition to TSMC, Fubon Life Insurance Co., the life insurance unit of Fubon Financial Holding Co., secured the green light from the government to invest about US$538 million to set up financial subsidiary Fubon SPV (Jersey) Ltd., which will make investments overseas, the Investment commission said.
Cathay Life Insurance Co., the life insurance arm of Cathay Financial Holding Co., also obtained approval from the government to remit US$240 million overseas for financial purposes.
In the meeting, the Investment Commission approved four applications to invest a total of US$167 million in China, including a plan by Fubon Financial's general insurance unit Fubon Insurance Co. to remit about US$48.40 million to increase its investment in China's insurance market, the commission said. (By Lin Meng-ju and Frances Huang)


Updated : 2021-09-29 00:57 GMT+08:00