TAIPEI (Taiwan News) — The Financial Supervisory Commission said Wednesday it has approved the Union Bank of Taiwan application for a Tokyo branch.

The move comes amid a wave of industrial investment in Japan, spurred by TSMC’s new facility in Kumamoto, per CNA. Taiwanese banks are following their clients to better serve businesses operating abroad.

Union Bank currently maintains representative offices in Ho Chi Minh City and Hanoi. It cited Japan’s political and economic stability as key reasons behind the Tokyo expansion.

The bank added the planned branch would enhance its overseas service network, provide financial support to Taiwan-Japan business flows, and boost its international operations.

Eight Taiwanese banks operate in Japan, including Bank of Taiwan, First Commercial Bank, and Mega Bank. Taiwan-Japan economic ties have strengthened in recent years, particularly in the high-tech and semiconductor sectors.

According to the International Trade Administration, bilateral trade between Japan and Taiwan was NT$2.25 trillion (US$75.7 billion) in 2023, making Japan Taiwan’s third-largest trading partner.