The FDI angle:

• Foreign direct investment (FDI) projects have become larger as companies announce mega projects in strategic sectors like batteries, semiconductors and renewable energy.
• Average capital expenditure (capex) of FDI projects in 2023 reached its highest level since the global financial crisis.
• Why does this matter? Large FDI projects can have profound economic development impacts on the locations in which they are made.

The wave of mega projects did not subside in 2023, despite rising interest rates and a challenging macroeconomic environment. 

Energy companies, semiconductors and battery firms dominate fDi’s list of the top 10 largest greenfield foreign direct investment (FDI) projects of 2023, which further pushed up the average capital expenditure (capex) level of cross-border FDI projects globally. 

Figures from greenfield FDI monitor fDi Markets show that the average capex for FDI projects in 2023 stood at $83.5m, the highest figure since the global financial crisis. 

Mega projects come at a price, though. Given their scale and ambition, they face multiple risks that can affect their timeline and execution. Besides, many of them depend on the generous fiscal incentives made available by national and regional governments, particularly in strategic sectors in North America and Europe. These are typically tied to performance metrics, adding another layer of uncertainty over the capacity of these projects to live up to original expectations. 

Methodology note: the top 10 features only those projects that were officially confirmed by the investing companies as having a final investment decision in 2023. Memorandums of understanding or projects in earlier stages of development were not included. Capex values in dollar were calculated on the basis of exchange rates on February 8. 

1. TSMC / Germany / Semiconductors / Capex: €10bn ($10.74bn)

The largest greenfield FDI project of 2023 is a major win for both Germany and the EU, as the bloc tries to secure its own microchip value chain. 

Taiwanese powerhouse TSMC confirmed its plans to build a fabrication plant (‘fab’) for the production of 300mm wafers in Dresden, Germany, in July. The new facility, which TSMC will develop in partnership with Bosch, Infineon and NXP Semiconductors, will be able to produce 40,000 wafers per year and create 2000 direct jobs. 

The new fab will cost €10bn. The German government is reportedly covering 50% of the investment, with another €3.5bn coming from TSMC. The rest will come from the other partners and debt.

“Europe is a highly promising place for semiconductor innovation, particularly in the automotive and industrial fields, and we look forward to bringing those innovations to life on our advanced silicon technology with the talent in Europe,” CC Wei, CEO of TSMC, said in a statement. 

2. Equinor / Brazil / Oil and gas / $9bn 

In May, Norwegian energy company Equinor announced the final investment decision on the development of the BM-C-33 offshore gas field in Brazil. The company and its partners, Repsol Sinopec Brasil and Petrobras, will invest $9bn in the project. Production capacity is planned at 16 million cubic metres of gas per day, with average exports expected of 14 million cubic metres of gas per day. Production is planned for 2028.

3. BP / Germany / Renewables / $7.3bn 

In July, the German government awarded British energy company BP the rights to develop two offshore wind projects in the North Sea. The projects will have a total combined installed capacity of four gigwatts. 

Initial payments totalling €678m, equivalent to 10% of the bid amount, will be paid by July 2024. The remaining 90% will be paid over a 20-year period starting when the projects become operational.

The projects will deliver expected returns of 6–8%, and are expected to be connected to the grid by end of 2030. 

4. Amazon / Malaysia / IT infrastructure / $6bn 

Amazon’s agreement with the government of Malaysia stands out as the biggest FDI project in the IT sector in 2023. The company will invest at least RM25.5bn ($6bn) by 2037 to develop a new cloud region in the country, the company said in a statement in March. The investment, which is Amazon's largest in Malaysia to date, will comprise multiple clusters of data centres in availability zones across the country.

More FDI trends you may have missed:

• The 2023 investment matrix
• The rise of nearshoring FDI close to Europe
• FDI into Africa from GCC hits new heights

5. Prologium / France / Batteries / $5.6bn 

Taiwanese battery producer ProLogium chose France for its first gigafactory — a large-scale facility producing batteries — outside Taiwan. ProLogium will invest €5.2bn to set up a 48 gigawatt hour (GWh) gigafactory and a research and development centre in Dunkirk, France. 

Scheduled to break ground in 2024 and open in 2026, the company expects the new facility to create 3000 direct jobs and 12,000 indirect jobs. 

6. Volkswagen / Canada / Batteries / $5.2bn 

German automotive powerhouse Volkswagen unveiled plans to build its first overseas gigafactory in St Thomas, Canada. Developed by its battery subsidiary PowerCo, the new facility will have a capacity of up to 90GWh per year. The planned investment will reach €4.8bn, with the facilities expected to come online by 2030 and create 3000 direct jobs, along with thousands of indirect jobs within the region, the company said in a statement in December. 

7. Tata / UK / Batteries / $5bn 

Indian Tata Sons will build a 40GW battery cell gigafactory in Somerset, the UK, the company confirmed in a statement in July. The facility will have a total capacity of 40GWh per year and total investment is budgeted at £4bn. Production is slated to commence in 2026. The UK government is reportedly supporting the project with subsidies worth a total of £500m.

8. Northvolt / Canada / Batteries / $5bn 

Swedish battery manufacturer Northvolt announced plans to build a gigafactory in the outskirts of Montreal, Quebec, in September. The new facility will have a capacity of 60GWh per year. It will demand an investment of $5bn and employ 3000 people. The project is being developed with financial support from the governments of Canada and Quebec, and represents the largest private investment in the history of Quebec, the company said in a statement. 

9. Intel / Poland / Semiconductors / $4.9bn 

Intel announced in June it had selected an area near Wrocław, Poland, as the site of a new semiconductor assembly and test facility. Intel expects to invest up to $4.6bn in the facility, which will have the capacity to expand. When completed, the facility will support approximately 2000 Intel employees. Design and planning for the facility will begin immediately, with construction to commence pending European Commission approval, the company said in a statement.

10. BHP / Canada / Mining / $4.9bn

Australian mining firm BHP is going ahead with a $4.9bn investment for stage two of the Jansen potash project in Saskatchewan, Canada, the company announced in a statement in September. 

This follows BHP’s approval of $5.7bn for stage one of the potash project in August 2021 and a pre-Jansen stage 1 investment of $4.5bn.

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