Latest official surveys show that most of the 50,000 companies with Taiwan investment on the mainland are making profits.

In Guangdong, Fujian and Jiangsu provinces and Shanghai Municipality, where there are 35,000 Taiwan-funded firms, some 60 percent are profitable, while another 10 to 20 percent are breaking even.

However, some investors have failed on the mainland, due to various factors including their unfamiliarity with local markets, policies and environments. Some have even gone bankrupt.

"The mainland has cheap land and labor as well as a big market and quality professionals," said a Taiwan businessman in Shanghai.

The success stories of many Taiwan factories have attracted more investors from the island province.

In east China's Zhejiang Province alone, the number of new Taiwan-funded firms and their contractual investment rose by over 70 percent and 80 percent respectively year-on-year.