TAIPEI (Taiwan News) — Taiwanese listed companies earned NT$115.6 billion (US$3.86 billion) from Chinese operations in Q1, setting a new record on the back of strong electronics demand, the Financial Supervisory Commission reported Tuesday.

The figure marks the highest-ever for the period, up NT$14.4 billion year-on-year, with listed companies accounting for NT$111.8 billion and over-the-counter (OTC) firms NT$3.8 billion, per CNA.

The FSC said 1,194 listed companies held investments in China as of March, though that number fell by 17 from the end of last year. Electronics and components firms made the bulk of these investments.

FSC Securities and Futures Bureau Chief Secretary Huang Chung-hao (黃仲豪) said companies continued to inject capital into Chinese subsidiaries for expansion and operational needs. Sectors with the largest cumulative exposure include computer hardware and electronic components.

Despite geopolitical risks, Huang said strong downstream demand in optoelectronics and semiconductors had driven recent profit gains, particularly for cloud and networking products.

Overall overseas investments by listed and OTC firms reached NT$9.93 trillion by the end of March, an increase of NT$133.7 billion from the previous quarter. Much of the growth stemmed from mergers and acquisitions, capital injections, and working capital needs in foreign subsidiaries.

Since the onset of the US-China trade war in 2018, Taiwan’s China-bound investments have slowed, but profits continue to flow back steadily, Huang noted. At the same time, companies are ramping up investments in other regions, gradually reducing overreliance on China.