1. Top 10 FDI projects of 2024
2024 has been a remarkable year for foreign direct investment (FDI), with significant projects announced across various sectors. Here are the top 10 FDI projects that have made headlines this year:
- TSMC’s Semiconductor Fab in Phoenix, Arizona
- Investment: $25 billion
- Sector: Semiconductors
- Details: Taiwanese chipmaker TSMC announced its third semiconductor fab in Phoenix, Arizona, marking the largest greenfield FDI in US history
- Intel’s Expansion in Ohio
- Investment: $20 billion
- Sector: Semiconductors
- Details: Intel’s new semiconductor manufacturing facility in Ohio aims to bolster the US semiconductor supply chain.
- Samsung’s New Chip Plant in Texas
- Investment: $17 billion
- Sector: Semiconductors
- Details: Samsung is expanding its semiconductor manufacturing capabilities with a new plant in Taylor, Texas.
- Amazon’s Data Centers in Virginia
- Investment: $15 billion
- Sector: Digital Infrastructure
- Details: Amazon Web Services (AWS) is investing heavily in new data centers to support its cloud services.
- Tesla’s Gigafactory in Berlin
- Investment: $12 billion
- Sector: Automotive
- Details: Tesla’s Gigafactory in Berlin is set to enhance electric vehicle production in Europe.
- Microsoft’s Data Center Expansion in Sweden
- Investment: $10 billion
- Sector: Digital Infrastructure
- Details: Microsoft is expanding its data center footprint in Sweden to support its growing cloud services.
- Google’s Data Center in Denmark
- Investment: $9 billion
- Sector: Digital Infrastructure
- Details: Google is building a new data center in Denmark to enhance its European operations.
- Apple’s New Campus in North Carolina
- Investment: $8 billion
- Sector: Technology
- Details: Apple’s new campus in North Carolina will focus on software development and engineering.
- Volkswagen’s Electric Vehicle Plant in China
- Investment: $7 billion
- Sector: Automotive
- Details: Volkswagen is expanding its electric vehicle production capabilities with a new plant in China.
- Huawei’s Research and Development Center in Canada
- Investment: $6 billion
- Sector: Technology
- Details: Huawei is establishing a new R&D center in Canada to drive innovation in telecommunications
Conclusion
These projects highlight the continued importance of FDI in driving economic growth and technological advancement. Despite global economic challenges, these investments demonstrate a strong commitment to innovation and development across various sectors. Read more.
2. Global FDI 2025 forecast
As we approach 2025, the landscape of global Foreign Direct Investment (FDI) is poised for a modest recovery. Despite the volatility and uncertainty that have characterised recent years, there are several reasons to be cautiously optimistic about the future of FDI.
Economic Growth and Stability
The global economy is projected to grow steadily at 3.2% in both 2024 and 2025. This stability is expected to create a conducive environment for FDI, as economic growth often correlates with increased investment opportunities. Inflation rates, which have been a significant concern, are expected to normalise, providing further stability. After peaking at 9.4% in 2022, global inflation is projected to decrease to 3.5% by the end of 2025.
Policy and Governance
The year 2025 will see more than 70 new governments, including those of major countries, becoming fully functional after the elections in 2024. This influx of new administrations is likely to bring clearer national development strategies and industrial policies, which can positively influence FDI. Additionally, many countries are accelerating the introduction of new policy measures to facilitate and promote investment.
Opportunities and Risks
While the overall outlook is positive, the recovery of global FDI is expected to be modest and structure-driven rather than expansion-driven. Opportunities abound as the global economy remains on an upward trajectory, with world trade in goods and services projected to grow by 3.4% in 2025. However, downside risks such as regional conflicts and geoeconomic rivalries could dampen these prospects.
Sectoral Shifts
Certain sectors are likely to attract more FDI due to their growth potential. For instance, the technology and renewable energy sectors are expected to see significant investments as countries and companies continue to prioritise sustainability and innovation. Additionally, developing economies with high growth rates, such as those in Africa and Asia-Pacific, are becoming increasingly attractive to foreign investors.
Conclusion
In conclusion, while the global FDI landscape for 2025 presents a mix of opportunities and challenges, the overall outlook is one of cautious optimism. Economic stability, favorable policy changes, and sectoral growth are likely to drive a modest recovery in FDI, pulling it out of the recession experienced in recent years. However, investors must remain vigilant of the potential risks that could impact these prospects.
3. Hyundai and MapmyIndia form joint venture
tom fisk
In a significant move to enhance automotive navigation technology in Southeast Asia, Hyundai AutoEver, the IT affiliate of Hyundai Motor Group, has partnered with India’s leading digital map provider, MapmyIndia, to establish a new joint venture in Indonesia. The new entity, named PT Terra Link Technologies, aims to develop high-quality automotive navigation maps for the region.
Strategic Partnership
The joint venture, capitalised at $10 million, sees Hyundai AutoEver holding a 60% stake, while MapmyIndia owns the remaining 40%. This collaboration is set to leverage the strengths of both companies to create advanced navigation solutions tailored to the diverse and complex road environments of Southeast Asia.
Focus on High-Quality Navigation Maps
PT Terra Link Technologies will focus on developing navigation maps for countries including Indonesia, Thailand, Malaysia, Vietnam, the Philippines, and Singapore. The goal is to provide a differentiated experience to consumers and support global automakers in enhancing their competitiveness in the field of navigation.
Seo Dong-kwon, head of Hyundai AutoEver’s navigation business unit, emphasised the importance of this venture: “We aim to build high-quality automotive maps to deliver a differentiated experience to consumers and support global automakers in enhancing their competitiveness in the field of navigation.”
Expansion into International Markets
For MapmyIndia, this joint venture marks a significant step in its expansion into international markets. Rakesh Verma, Chairman of MapmyIndia, expressed his enthusiasm: “After many years of focusing on developing mapping solutions for India, we finally have the opportunity to expand into international markets through the PT Terra Link Technologies joint venture.”
Innovative Solutions
MapmyIndia’s diverse range of solutions, including ADAS (Advanced Driver Assistance Systems), EV Mobility stack, video telematics for fleets, and geospatial solutions like 3D digital twin mapping, will be integral to the joint venture’s offerings. Sapna Ahuja, COO of MapmyIndia, highlighted the increased adoption of these solutions and their potential impact on the new venture.
Conclusion
The establishment of PT Terra Link Technologies represents a strategic move to address the growing demand for advanced in-vehicle navigation systems in Southeast Asia. With rapid economic growth and a sharp rise in vehicle demand in the region, this joint venture is poised to play a crucial role in shaping the future of automotive navigation.
4. GKN Aerospace opens $55M San Diego operations
GKN Aerospace has significantly bolstered its presence in North America with the inauguration of a new state-of-the-art facility in San Diego, California. This $55 million investment aims to meet the growing demand for advanced maintenance, repair, and overhaul (MRO) services in the aerospace sector.
Strategic Expansion
Located adjacent to GKN Aerospace’s existing site, the new 150,000 square-foot facility effectively doubles the company’s MRO capacity in the region. This expansion is a strategic move to support the increasing demand for repair solutions for both current and next-generation engine components, including the GE LEAP and Pratt & Whitney geared turbofan engines.
Advanced Technology and Capabilities
The facility is equipped with cutting-edge automation and robotics, enhancing the efficiency and reliability of GKN Aerospace’s services. These technological advancements are expected to streamline operations, reduce turnaround times, and improve product reliability, thereby providing significant benefits to the company’s global customer base.
Commitment to Sustainability and Innovation
Joakim Andersson, President of Engine Systems at GKN Aerospace, emphasised the company’s commitment to innovation and sustainability. “We are incredibly proud to open this new state-of-the-art facility and to share this milestone with our customers, employees, and stakeholders. This significant investment brings the latest automated manufacturing technologies to our business, while emphasising our commitment to our customers in North America and helping to meet the growing demand for MRO in the region,” he stated.
Economic Impact and Job Creation
The new facility is not only a technological marvel but also a significant economic boon for the local community. It is expected to create numerous jobs, adding to the current workforce of 900 employees in San Diego. This development underscores GKN Aerospace’s dedication to investing in specialist skills and capabilities to meet future demands.
Conclusion
With this expansion, GKN Aerospace continues to strengthen its position as a leader in the aerospace industry, providing world-class MRO services and innovative repair technologies for civil and military aeroengines. The new San Diego facility marks a key milestone in the company’s strategy to enhance its global repair network and support its growing customer base.
5. Thai PM visits Malaysia
In a significant move to strengthen regional cooperation, Thai Prime Minister Paetongtarn Shinawatra embarked on her first official visit to Malaysia. The visit, which took place on December 16, 2024, aimed to enhance bilateral trade and investment between the two neighboring countries.
During her visit, PM Paetongtarn met with Malaysian Prime Minister Anwar Ibrahim. The two leaders co-chaired the 7th Annual Consultation, where they discussed various aspects of economic cooperation. A key highlight of the meeting was the signing of two Memorandums of Understanding (MoUs). The first MoU focused on the joint development of the rubber industry, while the second aimed at boosting cultural and artistic exchanges.
Both leaders expressed their commitment to increasing the value of bilateral trade to USD 30 billion by 2027. They emphasised the importance of infrastructure development, particularly in enhancing border connectivity and easing cross-border travel. This includes plans to improve rail connectivity and support regional logistics initiatives, such as the ASEAN Express freight trains.
In addition to trade and investment, the discussions also covered cooperation in tourism, digital economy, and the development of the halal food industry. The two premiers also addressed the issue of flooding in border provinces and pledged to continue developing road and rail transport to facilitate trade and logistics.
PM Paetongtarn’s visit underscored the strong and friendly ties between Thailand and Malaysia. She expressed her support for Malaysia’s bid to host the ASEAN summit in 2025 and invited PM Anwar to visit Thailand soon.
This visit marks a significant step forward in the Thailand-Malaysia partnership, setting the stage for enhanced economic cooperation and mutual growth in the coming years.
