In a programme launched more than five years ago, Taiwan is looking to retain more capital onshore that is generated.

Taiwan’s semiconductor leadership affects the island's financial industry as international banks move to capture wealth created by the chip sector, a report notes.

For example, Paris-headquartered BNP Paribas is positioning as a long-term partner to newly wealthy entrepreneurs navigating the transition from concentrated equity holdings to globally diversified portfolios, the South China Morning Post reported in a 4 April report. 

“First-generation technology and semiconductor-linked entrepreneurs are becoming a larger component of new UHNW [ultra high net worth] formation in Taiwan, alongside long-established wealth from trading, traditional manufacturing, and real estate,” Arnaud Tellier, Asia-Pacific CEO at BNP Paribas Wealth Management, was quoted by the SCMP as saying. 

The report quoted BNP as saying that it saw a clear rise in clients adopting “family office-style” structures, with needs spanning succession planning, governance and cross-border coordination – particularly as wealth is often tied to concentrated equity positions in the semiconductor supply chain.

The Asian island wants to retain more of that capital onshore through its "Wealth 2.0" programme unveiled about six years ago. Last July, the country launched a pilot wealth management zone in Kaohsiung, offering regulatory incentives and a more tailored environment for financial institutions. More than 40 institutions, including BNP, have since joined the scheme to support more sophisticated wealth structures.

Other banks mentioned in the report as important in Taiwan were Deutsche Bank and JP Morgan. Banks that have also made moves in the country include HSBC and UBS.