The introduction of the foreign investment theory aggressively improved the investment environment in Taiwan; it resulted in obtaining the advanced technology transfer from foreign investments, as well as the transformation and upgrading of products in order to expand the international market and improve the international competitiveness of Taiwan. This study took the electronics industry, which accounted for the largest proportion of total investments in Taiwan, Korea, and China from 1990 to 2009 as an example, to investigate Japan's growth of investments and trade in Taiwan, Korea, and China over the last 19 years and the corresponding technology transfer performance. Hence, many products produced in China are at the first place of market competitiveness in the Japanese market, while the semiconductor electronic components and IC products in Taiwan are still characterized by high quality and high competitiveness. As a result, the international competitiveness of products increases with the increase in technology transfer caused by foreign investments.